$100M NJ Deli Fraud Cases Compete, Prosecutors Say In Filing: Report

PAULSBORO, NJ — Federal prosecutors say a civil case against the accused ringleaders of a $100 million fraud scheme involving a South Jersey deli interferes with their criminal investigation, a report said.

The District of New Jersey filed a motion on Wednesday asking a judge to postpone a civil case brought by the Securities and Exchange Commission against three men, according to a report by CNBC. Both cases revolve around the now-closed Your Hometown Deli in Paulsboro.

As Patch previously reported, the deli saw its stock market value increase to $100 million during the coronavirus pandemic under the umbrella company Hometown International, Inc. Three men face federal charges in connection with the case, U.S. Attorney Philip Sellinger's office announced in September.

Officials say James Patten, Peter Coker Sr., and Peter Coker Jr. "undertook a calculated scheme" to gain control of Hometown International's shares, and manipulated the market to inflate its stock by about 939 percent. Related — $100M Deli Scheme In Gloucester County Leads To Charges For 3 Men

Coker Sr. and Patten have pleaded not guilty, per CNBC. The SEC also filed a complaint against these three men, but New Jersey prosecutors said the civil case overlaps "substantially" with their own, the report said. Judge Christine O’Hearn has yet to rule on the matter.

Federal officials say owners of the restaurant formerly at 541 Mantua Avenue in Paulsboro did not know they were part of the fraud scheme. The restaurant was sold and closed earlier this year, CNBC reported.

Two Paulsboro High School employees were executives at Hometown International but the firm replaced them in May 2021, the Courier-Post reported at the time. Principal/wrestling coach Paul Morina and teacher Christine Lindenmuth were still responsible for operating Your Hometown Deli, Hometown International said at the time.