More than two years after being arrested on securities fraud charges, a octogenarian Chapel Hill businessman and his son pleaded guilty in federal court to a market manipulation scheme.
A release from the U.S. Department of Justice said 82-year-old Peter Coker, Sr. of Chapel Hill and 56-year-old Peter Coker Jr. each admitted to their roles in significantly boosting the trades of two companies to attempt a reverse merger and sell shares at higher values. The stock inflation scheme was brought to light in 2022 after federal authorities arrested Coker Sr. and Winston-Salem businessman James Patten, 65 — who has also since pleaded guilty to his own charges.
The trio of men worked to take over the management and stock of Hometown International, the publicly-traded company that consisted only of Hometown Deli in Paulsboro, N.J., and the shell company E-Waste Corp. Patten helped open Hometown Deli in 2014 with a pair of businesses owners, who are not involved in the scheme, and then conspired with the Cokers years later to artificially trade the stock of the deli’s umbrella company and E-Waste in order to eventually sell with significant profits. Both companies were traded on the OTC Link Alternative Trading System, according to the Department of Justice.
The street view of Hometown Deli in Paulsboro, N.J. in 2019. (Photo via Google Maps.)
For several years, the defendants transferred their shares to family members, friends and associates before accessing those people’s trading accounts, the Department of Justice argued. Using those other accounts, the trio would coordinate trades — called a “match and wash” tactic — to boost outside interest in the stock on the market. Ultimately, the scheme artificially inflated Hometown International’s stock by 939% and E-Waste’s stock by around 19,900%.
Coker Jr. was arrested separately from his father and Patten, having initially evaded authorities while overseas before being caught in Thailand. Coker Sr. — who is known locally for being the managing director of Tryon Capital Ventures, which took ownership of the gifts and gourmet food store Southern Season in 2011 alongside Carrboro Capital Corporation — is registered to a Chapel Hill address in Chatham County.
The securities fraud charges both of the Cokers face carry a maximum penalty of 20 years in prison and a $5 million fine, according to the DOJ’s release. The conspiracy to commit securities fraud crimes carry an additional maximum of five years in prison and a fine of at least a $250,000. Coker Jr.’s sentencing will come first, as the federal judge set it for April 2; Coker Sr. will be sentenced on May 13.
Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.
Comments on Chapelboro are moderated according to our Community Guidelines