Topline
A man accused of taking part in a scheme that briefly made a small New Jersey deli worth $100 million on paper has been arrested in Thailand, according to multiple reports, and will now face federal charges in what appears to be one of the most bizarre cases of alleged stock manipulation in recent memory.
A cheesesteak sandwich went for only $7.75 at Your Hometown Deli in Paulsboro, New Jersey, even … [+]
Key Facts
Thai authorities arrested 54-year-old Peter Coker Jr. at a hotel room in the Thalang district of Phuket province, several media outlets reported Wednesday, citing the New Jersey U.S. Attorney’s Office.
Coker Jr. was charged with money laundering, wire fraud, securities fraud and other crimes as part of a 12-count indictment in September, along with his father, Peter Coker Sr., 83, and associate James Patten, 63.
Coker Sr. and Patten were both arrested in North Carolina in September and have pleaded not guilty.
It’s not clear if Coker Jr. has an attorney.
Key Background
Coker Jr. served as the chairman of Hometown International Inc., a publicly traded company that reached a $100 million market capitalization in 2021 despite holding only one asset: Your Hometown Deli in Paulsboro, New Jersey, a suburb of Philadelphia. Prosecutors say the men advertised Hometown International and a shell business they operated, E-Waste Corp., as vessels for reverse mergers with private businesses, drastically boosting the companies’ stock prices in the process. Their alleged manipulation—which prosecutors say included illegal coordinated trades—managed to raise Hometown International’s stock price by more than nine times and E-Waste’s by nearly 200 times. Even before charges were filed last year, Hometown International drew scrutiny from hedge fund manager David Einhorn in March 2021, who proclaimed, “The pastrami must be amazing.”
Big Number
About $13,000. That’s how much in sales Your Hometown Deli made in 2021, before shutting down last June.
Further Reading
SEC Charges Three Men With Fraud Over $100 Million New Jersey Deli (Forbes)
Notorious New Jersey Deli Once Worth Over $100 Million Cut Cold, Closes Doors (Forbes)
Source: https://www.forbes.com/sites/nicholasreimann/2023/01/18/suspect-behind-100-million-nj-deli-scheme-arrested-in-thailand/