James Patten, Securities Fraud, New Jersey 2024

CAMDEN, N.J. – In a shocking turn of events, a North Carolina man has been sentenced to 20 years in prison for orchestrating a large-scale market manipulation scheme related to a New Jersey deli.

James Patten, 64, of Winston-Salem, North Carolina, pleaded guilty to securities fraud and conspiracy to commit securities fraud before U.S. District Judge Christine P. O’Hearn.

According to documents filed in the case and statements made in court, Patten, along with co-defendants Peter Coker Sr., and Peter Coker Jr., conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading.

The scheme, which took place from 2014 through September 2022, targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System.

Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company.

The defendants’ scheme had the ultimate impact of artificially inflating Hometown International’s stock by 939 percent and E-Waste’s stock by 19,900 percent.

U.S. Attorney Philip R. Sellinger credited special agents of the Federal Bureau of Investigation with the investigation.

Patten is scheduled to be sentenced on April 23, 2024, and faces a maximum penalty of 20 years in prison and a $5 million fine.

The conspiracy to commit securities fraud carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.

The case is a stark reminder of the dangers of securities fraud and the importance of protecting investors.

Related Federal Cases