Peter Coker Jr., a central figure in the $100 million New Jersey deli stock fraud case, was sentenced to 40 months in prison in U.S. District Court in Camden, New Jersey. Coker Jr., 56, was previously arrested in Thailand and extradited to the U.S. after authorities located him while he was under indictment for securities fraud. His lawyer revealed that while held in a Thai prison, Coker Jr. was violently attacked by up to ten inmates and endured “inhumane” conditions. Due to time already served in Thai and Essex County jails—around 26 months—he is expected to serve roughly 12 additional months before being transferred to immigration custody for deportation. He renounced his U.S. citizenship in 2019 and holds St. Kitts citizenship.
Coker Jr. admitted his involvement in a scheme to inflate stock prices of Hometown International and the shell company E-Waste, making them appear valuable to potential merger partners. Despite Hometown owning only a small, unprofitable deli, it had a market cap exceeding $100 million. E-Waste, with no operations, had an even higher valuation. Coker Jr., who suffers from advanced liver disease due to alcohol abuse, expressed remorse during sentencing, stating his actions deeply hurt his family and expressing regret for his role in the fraud.
His father, Peter Coker Sr., 82, was sentenced to six months in jail followed by six months of home confinement and ordered to pay a $500,000 fine and up to $644,000 in restitution. The court acknowledged his age as a factor in reducing the sentence from federal guidelines recommending up to 63 months. Judge Christine O’Hearn noted that the companies were “worthless” and the fraud, which involved coordinated trading to simulate demand, caused nearly $5 million in losses, affecting investors including prominent universities. O’Hearn rejected defense arguments that minimized the elder Coker’s role, calling the scheme “very sophisticated” and driven by greed. A third defendant, James Patten, with a prior conviction and securities violations, will be sentenced in June. The fraud spanned from 2014 to 2022, involving inflated trading of thinly traded OTC stocks through an esoteric corporate structure that ultimately collapsed.
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