https://sputnikglobe.com/20220927/owners-of-the-100-million-dollar-deli-hit-with-multiple-securities-fraud-charges-1101254152.html
Owners of the ‘100 Million Dollar Deli’ Hit With Multiple Securities Fraud Charges
Owners of the ‘100 Million Dollar Deli’ Hit With Multiple Securities Fraud Charges
Sputnik International
Your Hometown Deli, in Paulsboro, NJ, had annual revenue of less than $40,000, but its parent company had a market value stock price of over $100 million... 27.09.2022, Sputnik International
2022-09-27T02:33+0000
2022-09-27T02:33+0000
2022-09-27T02:33+0000
americas
us
fraud
sec
us securities and exchange commission (sec)
https://cdn1.img.sputnikglobe.com/img/07e6/09/1b/1101254009_0:48:1408:840_1920x0_80_0_0_a791c7ec8e256de84c9a8501564ff456.png
The owners of the infamous New Jersey “$100 million deli” have been charged with multiple crimes involving market manipulation, wire fraud, money laundering, and other financial crimes.James Patten, 63, of Winston-Salem, North Carolina; Peter Coker Sr., 80, of Chapel Hill, North Carolina; and Peter Coker Jr., 53, of Hong Kong were charged with 12 counts of various financial crimes, authorities said on Monday. Patten and Coker Sr. were arrested on Monday; Coker Jr. has not yet been picked up by authorities.Their charges include conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate security prices. Patten was further charged with four counts of wire fraud, four counts of manipulation of securities, and one count of money laundering. The two men who have been arrested appeared in a North Carolina court on Monday and will appear in front of a New Jersey court at a future date.All three men have been accused by the Securities Exchange Commission. That investigation is ongoing.According to authorities, Patten convinced the owners of the deli to incorporate the shop as a wholly owned subsidiary of an umbrella corporation owned by Patten. He immediately started positioning the company for a reverse merger to gain profits for himself.After allegedly manipulating the stock price on small OTC stock exchanges, the umbrella corporation “Hometown International” gained a value of over $100 million, despite its only significant asset being Hometown Deli in Paulsboro, NJ, which had less than $40,000 in annual sales. The price discrepancy first became public when an investor wrote a letter to clients in 2021, resulting in the deli getting its nickname “the $100 million deli.”OTC stock exchanges are semi-private stock exchanges where smaller companies can sell their shares. They have less regulation and often escape the eyes of the SEC.The umbrella company is also involved with a company named E-Waste, which has no sales. Despite that, the men were allegedly able to increase the stock price of both Hometown International and E-waste through their manipulation by 939% and 19,900%, respectively.The securities fraud and price manipulation charges have a maximum sentence of 20 years in prison and a $5 million fine. The wire fraud and money laundering charges each add another 20 potential years in prison, while the conspiracy to commit security fraud and conspiracy to manipulate security prices could add up to another five years in prison if the men are convicted.
https://sputnikglobe.com/20220903/brett-favre-spoke-to-the-fbi-in-welfare-fraud-case-1100329011.html
https://sputnikglobe.com/20220926/former-ftc-officials-are-certain-agency-is-investigating-twitter-1101251963.html
americas
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
2022
News
en_EN
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
Sputnik International
feedback@sputniknews.com
+74956456601
MIA „Rossiya Segodnya“
us, fraud, sec, us securities and exchange commission (sec)
us, fraud, sec, us securities and exchange commission (sec)
Owners of the ‘100 Million Dollar Deli’ Hit With Multiple Securities Fraud Charges
Your Hometown Deli, in Paulsboro, NJ, had annual revenue of less than $40,000, but its parent company had a market value stock price of over $100 million, despite holding no other significant assets.
The owners of the infamous New Jersey “$100 million deli” have been
charged with multiple crimes involving market manipulation, wire fraud, money laundering, and other financial crimes.
James Patten, 63, of Winston-Salem, North Carolina; Peter Coker Sr., 80, of Chapel Hill, North Carolina; and Peter Coker Jr., 53, of Hong Kong were charged with 12 counts of various financial crimes, authorities said on Monday. Patten and Coker Sr. were arrested on Monday; Coker Jr. has not yet been picked up by authorities.
Their
charges include conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate security prices. Patten was further charged with four counts of wire fraud, four counts of manipulation of securities, and one count of money laundering. The two men who have been arrested appeared in a North Carolina court on Monday and will appear in front of a New Jersey court at a future date.
3 September 2022, 01:41 GMT
All three men have been accused by the Securities Exchange Commission. That investigation is ongoing.
According to authorities, Patten convinced the owners of the deli to incorporate the shop as a wholly owned subsidiary of an umbrella corporation owned by Patten. He immediately started positioning the company for a reverse merger to gain profits for himself. After allegedly manipulating the stock price on small OTC stock exchanges, the umbrella corporation “Hometown International” gained a value of over $100 million, despite its only significant asset being Hometown Deli in Paulsboro, NJ, which had less than $40,000 in annual sales. The price discrepancy first became public when an investor wrote a letter to clients in 2021, resulting in the deli getting its nickname “the $100 million deli.”
26 September 2022, 23:40 GMT
OTC stock exchanges are semi-private stock exchanges where smaller companies can sell their shares. They have less regulation and often escape the eyes of the SEC.
The umbrella company is also involved with a company named E-Waste, which has no sales. Despite that, the men were allegedly able to increase the stock price of both Hometown International and E-waste through their manipulation by 939% and 19,900%, respectively.
The securities fraud and price manipulation charges have a maximum sentence of 20 years in prison and a $5 million fine. The wire fraud and money laundering charges each add another 20 potential years in prison, while the conspiracy to commit security fraud and conspiracy to manipulate security prices could add up to another five years in prison if the men are convicted.
