New Jersey Deli Stock Scheme Leads to 21-Month Prison Sentence for James Patten

On July 21, 2026, U.S. District Judge Christine P. O’Hearn sentenced James Patten, 67, to 21 months in federal prison for securities fraud and conspiracy tied to an inflated deli-related stock. The judge ordered an additional three years of supervised release and restitution of roughly $5 million. Patten, who asked for a non-custodial sentence, was denied relief after the judge noted his prior 27-month fraud conviction and that he had acted while on supervised release.

CNBCMan Tied to $100 Million NJ Deli Scam Gets 21 Months in Prison

The fraud centered on Hometown International Inc., whose sole asset was “Your Hometown Deli” in Paulsboro, New Jersey. Through coordinated trading with co-defendants Peter L. Coker Sr. and Peter L. Coker Jr., Patten helped push the company’s market value above $100 million despite 2019 sales of about $20,000 and even lower figures in 2020. The manipulation drew attention when Greenlight Capital’s David Einhorn cited the deli in an April 2021 letter as an example of market irrationality.

Man Tied to $100 Million NJ Deli Scam Gets 21 Months in Prison

Patten, a former stockbroker from Winston-Salem, North Carolina, previously served a 27-month sentence for a federal mail-fraud conviction. He pleaded guilty in December 2023 to the deli scheme, facing up to 20 years at trial. His co-conspirators have already completed their terms—six months for Coker Sr. and 40 months for Coker Jr.

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The court highlighted the ongoing restitution obligation and the need for deterrence in securities markets.

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• “I stand today before you to apologize, to take full responsibility for my actions,” — James Patten, the judge

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