3 men have been charged with fraud for allegedly orchestrating a scheme that inflated the market value of a tiny New Jersey deli to $100 million — despite generating less than $40,000 in annual revenue.
U.S. officials have announced fraud charges against three men who, they allege, orchestrated a scheme to inflate the market value of the company that owned Hometown Deli, a small delicatessen in New Jersey. In this photo illustration, a person views online information for the now-shuttered deli.U.S.
Patten and Coker Sr., who were arrested on Monday, are scheduled to appear in federal court in the Middle District of North Carolina. They'll also appear in federal court in New Jersey at an undetermined date. Coker Jr. is still at large. The delicatessen, called Hometown Deli, was located in Paulsboro, N.J., and has since closed. It was known for its cheesesteaks and bagels but also for the fact that it was publicly traded on the stock market, where it was valued at over $100 million.
"We allege that the defendants' brazen schemes resulted in the artificial inflation of the stock price of two publicly traded companies with little to no annual revenues," Scott Thompson, one of the agency's associate directors of enforcement, said."Such manipulative schemes diminish the trust investors must have in the integrity of the markets, and we will pursue those who engage in such wrongdoing.
At the time, no workers at the deli would speak to NPR. Additionally, James Patten and Peter Coker Sr. have not returned any messages seeking comment.
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