A father and son have been sentenced for their involvement in a market manipulation scheme involving two publicly traded companies, as announced by U.S. Attorney Alina Habba on May 13, 2025.
Peter Coker Sr., 82, from Chapel Hill, North Carolina, and Peter Coker Jr., 56, formerly of Hong Kong, China, pleaded guilty to securities fraud and conspiracy to commit securities fraud on December 19, 2024. U.S. District Judge Christine P. O’Hearn sentenced Coker Sr. to six months in prison, three years of supervised release with six months of home detention, and fines totaling $500,000. Coker Jr. received a sentence of 40 months in prison, three years of supervised release, and fines totaling $250,000.
James Patten, 65, from Winston-Salem, North Carolina also pleaded guilty to the same charges and is awaiting sentencing.
Court documents reveal that from 2014 through September 2022, the defendants conspired to manipulate securities prices through coordinated trading practices that misled the market about supply and demand for certain securities.
The scheme targeted Hometown International Inc. and E-Waste Corp., both traded on the OTC Marketplace. The defendants aimed to control these companies' management and stock to facilitate reverse mergers—transactions allowing public companies to merge with private entities—and profit significantly from selling shares.
In or around 2014 in Paulsboro, New Jersey residents began opening a deli under Hometown International as suggested by Patten. Unknown to them, Patten positioned it for a reverse merger for personal gain.
By October 2019 Hometown International was selling shares on the OTC Marketplace. The defendants gained control over its management and shares along with those of E-Waste Corporation using nominee entities controlled by Coker Jr. They transferred shares to associates while controlling their trading accounts to hide involvement.
Their actions inflated stock prices artificially; Hometown International's stock rose approximately 939 percent while E-Waste's surged about 19,900 percent.
U.S. Attorney Habba credited FBI’s Philadelphia Division agents led by Special Agent Wayne A. Jacobs alongside IRS-Criminal Investigation agents under Special Agent Jenifer L. Piovesan in Newark for investigating this case with assistance from FBI Charlotte Los Angeles San Francisco Denver Knoxville offices.
The government is represented by Lauren E. Repole Deputy Chief Criminal Division Assistant U.S Attorney Aaron Webman Economic Crimes Unit.
Defense counsel includes John Azzarello Esq., William McGovern Esq., Zach Intrater Marc Agnifilo representing Peter Coker Sr., Peter Coker Jr respectively.