$100M New Jersey deli fraudster James Patten sentenced to 21 months in prison - CNBC

What the report says

CNBC reported that James Patten, a former stockbroker tied to the widely followed New Jersey deli stock case, was sentenced Tuesday to 21 months in federal prison. The sentence was handed down by U.S. District Judge Christine O’Hearn in Camden, New Jersey, after Patten previously admitted to securities fraud and conspiracy in December 2023.

The case centered on Hometown International, a company whose only operating business was Your Hometown Deli in Paulsboro, New Jersey, and a separate shell company, E-Waste. Prosecutors said Patten and co-defendants Peter Coker Sr. and Peter Coker Jr. used coordinated trading to inflate the companies’ share prices, helping push Hometown’s valuation to about $100 million despite the deli’s poor financial performance. CNBC said Patten is the last of the three defendants to be sentenced; Coker Sr. received six months, while Coker Jr. received 40 months.

Patten had asked to avoid additional prison time, but CNBC reported that the judge pointed to his earlier federal fraud conviction and the fact that the deli-related conduct began while he was still under supervised release. At the same time, the court credited Patten’s cooperation with federal investigators, which prosecutors said helped cases against the Cokers.

In addition to prison time, Patten must serve three years of supervised release and is jointly responsible with the other defendants for more than $5.5 million in restitution. CNBC reported that victims included retail investors as well as Duke and Vanderbilt universities, which are owed most of the restitution.