Chapel Hill Father and Son Plead Guilty in 2022 Stock Fraud Case
In a recent development, a Chapel Hill businessman and his son have pleaded guilty to securities fraud charges after more than two years of legal proceedings. The U.S. Department of Justice announced that 82-year-old Peter Coker, Sr. and 56-year-old Peter Coker Jr. confessed to participating in a market manipulation scheme aimed at inflating the trades of two companies for a reverse merger and stock sale.
The scheme came to light in 2022 when federal authorities arrested Coker Sr. and another businessman, James Patten, who has also pleaded guilty to his involvement. The trio worked together to take control of Hometown International, a publicly traded company that was essentially just a deli in New Jersey and a shell company named E-Waste Corp.
By coordinating trades through family, friends, and associates to artificially boost stock prices, the group managed to inflate Hometown International’s stock by 939% and E-Waste’s stock by a staggering 19,900%. This tactic, known as a “match and wash” strategy, aimed to attract outside interest in the stock and generate significant profits upon selling.
Coker Jr. was apprehended in Thailand after evading authorities for some time, while Coker Sr., a prominent figure in local business circles, is tied to Tryon Capital Ventures and Southern Season store ownership. Both face severe penalties for securities fraud, with a maximum prison term of 20 years and a $5 million fine. Additionally, the conspiracy to commit securities fraud could add another five years in prison and a $250,000 fine to their sentences.
The sentencing for Coker Jr. is scheduled for April 2, while Coker Sr. will face sentencing on May 13. Stay tuned for updates on this case as it unfolds.
