James Patten has been sentenced to 21 months in prison for his involvement in a scheme that artificially inflated the valuation of a New Jersey deli to $100 million. According to CNBC, Patten played a key role in manipulating the stock of Hometown International, the parent company of Paulsboro-based Your Hometown Deli, alongside co-conspirators Peter Coker Sr. and Peter Coker Jr. Together, they orchestrated a massive price surge, inflating Hometown’s stock by 939%.
The fraudulent scheme aimed to transform the company into a lucrative shell for reverse mergers, providing a pathway for private entities to enter the public market. The manipulation was exposed in 2021 when hedge fund manager David Einhorn alerted clients to the deli’s nonsensical valuation, quipping, “The pastrami must be amazing.” Furthermore, a CNBC investigation uncovered a link between the deli’s ownership and Patten’s history of previous fraud convictions.
While Patten prepares for his sentence, his accomplices have already completed prison terms of six and 40 months. The deli itself, which was managed by a high school wrestling coach unaware of the underlying financial crimes, ceased selling pastrami in 2022.