An Overview of the Case

In September 2023, the fraudulent activities surrounding the Hometown Deli came to a head as Peter L. Coker Sr., his son Peter L. Coker Jr., and accomplice James T. Patten entered guilty pleas for securities fraud. The trio falsely claimed that their single-location deli in New Jersey was valued at an astounding $100 million.

The Scheme Uncovered

The investigation revealed that the Cokers, in collaboration with Patten, manipulated the financial metrics of two companies: Hometown International, which owned the deli, and another company named E-Waste. These actions were aimed at bolstering their appeal to potential private investors. However, it was later disclosed that Hometown Deli was merely a single, money-losing outlet while E-Waste was completely non-operational.

Sentencing Details

On Tuesday, Coker Sr., aged 82, received a sentence of six months in prison, complemented by an additional six months of home confinement upon release, as reported by CNBC. Moreover, he faces a financial penalty of $500,000 and is required to pay up to $644,000 in restitution to affected investors.

At the sentencing hearing, Coker Sr. expressed remorse, stating, “I’m terribly sorry for my part. This episode has been the worst time of my life,” and added, “I’m sorry for every investor harmed by my actions.”

Further Legal Proceedings

Sentencing for Coker Jr. and Patten is yet to occur. Following his arrest in 2022, Coker Jr. evaded authorities for a period, only to be found hiding in a hotel room in Phuket, Thailand. Following his sentence, he is expected to face deportation.

Courtroom Remarks

During the proceedings, Judge Christine O’Hearn characterized the fraudulent scheme as flawed from the outset, deeming the companies involved as worthless. She noted, “I learned more than I ever care to about their fraudulent operations.”