A convicted fraudster who helped make a New Jersey deli worth $100 million on paper is now heading to prison, again. James Patten was sentenced to 21 months for his role in manipulating shares of Hometown International, the parent company of Your Hometown Deli in Paulsboro, New Jersey, CNBC reports. Patten and co-conspirators Peter Coker Sr. and Peter Coker Jr. inflated Hometown’s stock by 939%.
The scam was designed to make the companies attractive shells for reverse mergers with private companies looking to go public. But the plan fell apart after hedge fund manager David Einhorn flagged the deli’s bizarre valuation to clients in 2021, joking, “The pastrami must be amazing.” A CNBC investigation connected Patten’s history of prior fraud convictions to the deli’s ownership.
Patten’s co-conspirators already served their sentences, six and 40 months respectively. The deli itself, run by a high school wrestling coach who had no idea he was part of the scam, stopped selling pastrami back in 2022.
A convicted fraudster who helped make a New Jersey deli worth $100 million on paper is now heading to prison, again. James Patten was sentenced to 21 months for his role in manipulating shares of Hometown International, the parent company of Your Hometown Deli in Paulsboro, New Jersey, CNBC reports. Patten and co-conspirators Peter Coker Sr. and Peter Coker Jr. inflated Hometown’s stock by 939%.
The scam was designed to make the companies attractive shells for reverse mergers with private companies looking to go public. But the plan fell apart after hedge fund manager David Einhorn flagged the deli’s bizarre valuation to clients in 2021, joking, “The pastrami must be amazing.” A CNBC investigation connected Patten’s history of prior fraud convictions to the deli’s ownership.
Patten’s co-conspirators already served their sentences, six and 40 months respectively. The deli itself, run by a high school wrestling coach who had no idea he was part of the scam, stopped selling pastrami back in 2022.