Hometown Deli, Paulsboro, N.J.
Mike Calia | CNBC
Federal authorities sought to detain one of the men charged in an alleged multiyear fraud scheme involving a neighborhood deli in a small New Jersey town, according to court records.
The man – Peter Coker Sr., 80 – was arrested Monday in North Carolina and then let go after the government agreed to the conditions surrounding his release. His son Peter Coker Jr., 53, was also charged. He is based in Hong Kong and remains at large.
Authorities also charged another North Carolina resident, James Patten, 63, on Monday. Both he and Coker Sr. are expected to appear in a New Jersey federal court at a yet-to-be-determined date.
The three men are charged with 12 counts, including securities fraud, wire fraud and money laundering. From 2014, when plans for the deli were first laid out, through this month, authorities say the men orchestrated a scheme to inflate the value of publicly traded companies called Hometown International and E-Waste as they sought merger partners. The Securities and Exchange Commission also sued the men in a parallel case.
Hometown International, which only had the deli and its less than $40,000 in annual sales to its name, and E-Waste, which had no discernible business, both ended up with market values of about $100 million. Both companies merged with other firms. The deli’s new owner, Makamer Holdings, closed the shop earlier this year, selling its remaining inventory for $700.
Coker Jr. was chairman of…
