Fraudster Sentenced for Inflating Value of New Jersey Deli Stock
Convicted fraudster James Patten will serve 21 months in prison for his role in manipulating the stock price of Hometown International, a company whose value soared to $100 million on paper.
James Patten, a convicted fraudster, has been sentenced to 21 months in prison for his involvement in inflating the stock price of Hometown International, the parent company of Your Hometown Deli in New Jersey. The stock's value surged by 939% due to the manipulation, briefly valuing the company at $100 million on paper.
The scheme aimed to make Hometown International an attractive vehicle for shell companies seeking to go public through reverse mergers. The fraud unraveled after hedge fund manager David Einhorn publicly questioned the deli's valuation in 2021. A CNBC investigation revealed Patten's history of prior fraud convictions was connected to the company's ownership.
Patten's co-conspirators, Peter Coker Sr. and Peter Coker Jr., have already served their respective sentences of six and 40 months. The deli itself, operated by a high school wrestling coach who was unaware of the scheme, ceased selling pastrami in 2022. The company's stock price plummeted following the disclosure of the fraud.