A father and son involved in a fraudulent scheme worth $100 million related to a New Jersey deli have pleaded guilty and received prison sentences. On Tuesday, Peter Coker Sr., aged 82, was sentenced to six months in prison followed by six months of home detention. He was also ordered to pay a $500,000 fine and about $644,000 in restitution.
His son, 56-year-old Peter Coker Jr., received a 40-month prison sentence, even after his lawyer claimed he was violently assaulted in a Thai prison following his capture. The third participant, James Patten, will be sentenced on June 10.
Their operation allegedly inflated the market caps of two companies to over $100 million each, despite owning a struggling deli and an e-waste business with no real operations. The scheme reportedly caused nearly $5 million in losses, affecting investors including those from Duke and Vanderbilt University.
During the court proceedings, Judge Christine O’Hern expressed skepticism about their motivations: “What is your motivation other than greed?” she asked, pointing out that all three were wealthy.
From 2014 to 2022, the trio manipulated stock trades to create an illusion of high demand, resulting in a 900% stock price increase for their hometown deli and a nearly 20,000% rise for the e-waste company. The scam was uncovered in April 2021 when hedge fund manager David Einhorn noted the deli’s poor financial performance despite its inflated valuation.
Coker Jr. was extradited from Thailand in March 2023 after evading capture for six months, having previously spent over two years in Essex County Jail while awaiting sentencing. “This crime has changed me deeply,” he told the judge, describing his time in a Bangkok prison as devastating.
Coker Jr. faces deportation after his sentence, having renounced his U.S. citizenship in 2019, and he currently holds citizenship from St. Kitts. Despite federal guidelines suggesting a longer sentence for his age, prosecutors aimed for a recommendation at the high end of a much shorter range.
Coker Sr. apologized in court, expressing regret for his actions, which he said brought harm to many, including his family. His attorney appealed for leniency, highlighting Coker Sr.’s long marriage and family obligations. “I think making him live with this guilt might be a punishment worse than what you can impose,” the lawyer argued.
Patten, who also pleaded guilty to mail fraud in a previous case, had faced sanctions in the past for violating securities laws and failing to pay a significant arbitration award.
