Father and Son Confess to $19 Million Stock Manipulation Scheme
The U.S. Attorney’s Office in New Jersey announced today that Peter Coker, Sr., 82, and Peter Coker, Jr., 56, along with James Patten, 65, pleaded guilty to securities fraud and conspiracy to commit securities fraud. These individuals were involved in a market manipulation scheme that targeted two public companies—Hometown International Inc. and E-Waste Corp.
From 2014 until September 2022, Coker Sr., Coker Jr., and Patten collaborated to artificially inflate stock prices through coordinated trading. Their plan involved gaining control of the management and stock of these companies to facilitate reverse mergers. A reverse merger is a transaction where a private operating company merges with an existing public company.
The scheme began when two individuals from New Jersey were planning to open a deli in Paulsboro. One of them discussed the idea with Patten, who suggested the creation of Hometown International without the owners’ knowledge. The company started selling shares around October 2019, prompting Patten, Coker Sr., and Coker Jr. to strategize gaining control of the company’s management and shares.
Similarly, they undertook similar actions to gain control of E-Waste Corp.’s stock and management. Once in control, they transferred millions of shares to nominee entities, including those controlled by Coker Jr. Additionally, they transferred shares to family members, friends, and associates, obtaining their log-in credentials to manipulate trading accounts and conceal their involvement in the scheme.
