Chapel Hill Father and Son Admit Guilt in 2022 Stock Fraud Case
A Chapel Hill businessman and his son have pleaded guilty in federal court to a stock fraud case, following more than two years after being arrested on securities fraud charges. The U.S. Department of Justice disclosed that 82-year-old Peter Coker, Sr. of Chapel Hill and 56-year-old Peter Coker Jr. each confessed to participating in a market manipulation scheme. This scheme involved significantly boosting the trades of two companies to try and carry out a reverse merger and sell shares at inflated values. The fraudulent activity came to light in 2022 after the arrest of Coker Sr. and Winston-Salem businessman James Patten, 65, who has also pleaded guilty in connection to this case.
The trio of individuals worked together to manipulate the management and stock of Hometown International, a publicly-traded company that consisted only of Hometown Deli in Paulsboro, N.J., and the shell company E-Waste Corp. Patten, alongside Cokers, artificially traded the stock of these companies to fetch significant profits. These companies were traded on the OTC Link Alternative Trading System as per the Department of Justice.
Over several years, the defendants transferred their shares to family members, friends, and associates, leveraging their accounts to boost market interest in the stock through coordinated trades, termed as a “match and wash” tactic. This led to an artificial inflation of Hometown International’s stock by a staggering 939% and E-Waste’s stock by approximately 19,900%.
Coker Jr. was arrested separately from his father and Patten after initially evading authorities while abroad and being captured in Thailand. Coker Sr., widely known as the managing director of Tryon Capital Ventures, is registered to a Chapel Hill address in Chatham County. The securities fraud charges confronting both the Cokers entail a maximum penalty of 20 years in prison and a $5 million fine, as outlined in the DOJ’s release. Additionally, the conspiracy to commit securities fraud crimes carries an additional maximum penalty of five years in prison and a minimum fine of $250,000. The federal judge has set Coker Jr.’s sentencing for April 2, while Coker Sr. is to be sentenced on May 13.
