Peter Coker Jr. was sentenced Tuesday to 40 months in prison for his role in a $100 million stock fraud scheme centered around a small New Jersey deli company, Hometown International. His father, Peter Coker Sr., received six months in jail followed by six months of home confinement.

The scheme involved artificially inflating the stock price of Hometown International and a related shell company, E-Waste, despite the deli being a small business losing money and E-Waste having no operations. The inflated market caps attracted interest from private mergers and investments, including from Vanderbilt and Duke universities.

While awaiting extradition in a Thai prison in early 2023, Coker Jr., 56, was violently attacked by other inmates, a hardship his lawyer highlighted during sentencing. He has served approximately 26 months in U.S. custody and faces deportation after his prison term. Coker Jr. renounced U.S. citizenship in 2019 and holds citizenship in St. Kitts.

At sentencing, Coker Jr. expressed deep remorse and described the prison assault as the lowest point of his life. His lawyer detailed Coker Jr.’s severe liver disease linked to alcohol abuse and hospitalizations.

The elder Coker, 82, apologized for his actions, acknowledging the harm caused to investors and his family. He was fined $500,000 and ordered to pay restitution of up to $644,000. Prosecutors sought a reduced sentence considering his age.

U.S. District Judge Christine O’Hearn called the scheme “multiyear” and “very sophisticated,” emphasizing that the companies were worthless and the fraud caused real harm. She noted the defendants’ wealth and questioned their motives, pointing to greed as the driving factor.

The scheme, which ran from 2014 to 2022, involved coordinated stock trading to create artificial demand. The stock price of Hometown International surged over 900%, and E-Waste’s price skyrocketed nearly 20,000%. The scam unraveled following scrutiny by hedge fund manager David Einhorn, who pointed out the disconnect between Hometown’s huge market value and its minimal deli revenue.

James Patten, the third defendant, involved in earlier securities fraud, also pleaded guilty and awaits sentencing.

This case exposed the manipulation of stocks trading on the OTC Marketplace and raised questions about investor due diligence on shell companies.