A fugitive charged over an alleged market manipulation scheme in which a small New Jersey deli mysteriously drew a $100 million valuation was arrested last week in Thailand, the feds confirmed Thursday.
Peter Coker Jr., 54, had been on the lam since last September, when prosecutors slapped him, his father, Peter Coker Sr., 80, and associate James Patten, 63, with 12 federal charges.
The trio allegedly boosted the share prices of Hometown International Inc. and another firm, E-Waste Corp.
When reached by The Post, Matthew Reilly, a spokesperson for the New Jersey US Attorney’s Office, confirmed that Coker Jr. was arrested on Jan. 11. The office declined further comment on the situation.
Coker Jr. was arrested last week at a hotel near Surin Beach in the Phuket province of Thailand, the Bangkok Post reported, citing local officials. Interpol had issued a red notice calling for his arrest.
Hometown International raised eyebrows after it drew a nine-figure valuation even though its only asset was “Your Hometown Deli” in Paulsboro. The feds allege that Coker Jr. and his co-conspirators managed to “artificially” inflate the company’s stock by 939%.
Patten and Coker Sr. were arrested in September, when the Justice Department first announced the charges, which include conspiracy to commit securities fraud, securities fraud and conspiracy to manipulate securities prices. Patten was slapped with additional charges, including money laundering and wire fraud.
Prosecutors said the trio used fake trades to create the impression that shares of the two firms were hot with investors.
“From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities,” the feds said in a statement at the time.
The strange situation was first noted in April 2021 by famed short-seller David Einhorn, who flagged Hometown’s massive valuation as an example of regulatory failings in a letter to his clients.
In the letter, Einhorn pointed out that the company and its lone deli had generated just $13,976 in sales the previous year.
“The pastrami must be amazing,” Einhorn wrote. “Small investors who get sucked into these situations are likely to be harmed eventually, yet the regulators — who are supposed to be protecting investors — appear to be neither present nor curious.”