Two men accused of participating in a stock manipulation scheme involving a small-town New Jersey deli will appear Tuesday morning in federal court, about 20 minutes from the now-closed store at the center of the case.
Peter Kirk Sr. 80, and James Patten, 63, who were arrested by federal authorities in North Carolina last month, will appear in U.S. District Court in Camden, N.J., which is just across the bridge from Philadelphia.
The two men are charged with several federal crimes, including fraud, for allegedly inflating the value of a publicly traded company that had a market value of more than $100 million last year, despite having only the Hometown Deli in Paulsboro, N.J., under its name. The deli generates less than $40,000 in sales a year.
Federal prosecutors have described the case as a tale of international fraud and betrayal. 53-year-old Peter Coker Jr. is the son of Coker Sr. and is currently in Hong Kong, where he is considered a fugitive. Federal authorities had tried to imprison Coker Sr. before agreeing to a conditional release. The Securities and Exchange Commission has also indicted the men in a civil case over the alleged conspiracy.
The men are accused of participating in Hometown International and a similar shell company called E-Waste. Prosecutors say the men tried to enrich themselves by inflating the prices of Hometown International and E-Waste. At one point, their values soared 939 percent and 19,900 percent, respectively, on the so-called over-the-counter market.
Coker Sr. will be represented by Marc Agnifilo, who has previously defended fraudster and “pharma bro” Martin Shkreli, disgraced filmmaker Harvey Weinstein, NXIVM cult leader Keith Raniere and a Russian bank sanctioned for invading Ukraine.
Anifero did not immediately respond to CNBC's request for comment.
The individuals are charged with conspiracy to commit securities fraud, securities fraud and conspiracy to fix the price of securities. The fraud and manipulation charges carry a maximum sentence of 20 years
Leave a Reply