Scam on rye: The inside story of a $100 million deli fraud
Business Insider
February 15, 2026
AI-Generated Deep Dive Summary
Two lifelong friends, James Patten and Paul Morina, saw their decades-long friendship crumble under the weight of a massive stock manipulation scheme involving their struggling deli business in Paulsboro, New Jersey. The pair had initially aimed to create a neighborhood anchor with *Your Hometown Deli*, but their ambitions turned into a fraudulent web that ensnared prestigious universities and destroyed investor trust.
The story began when Patten and Morina leveraged the deli as the sole asset of publicly traded shell company Hometown International, inflating its stock price through coordinated trading tactics. By funneling millions in shares to nominee entities controlled by friends and family, they created a false sense of demand, driving up the stock's value despite minimal revenue. This manipulation masked their control over 95% of the company’s shares, allowing them to pocket millions while duping investors.
The scheme unraveled in April 2021 when hedge fund manager David Einhorn flagged Hometown International as a prime example of market dysfunction. The deli, which had generated just $36,000 in sales over two years, was valued at $113 million—a glaring disparity that exposed the fraud. Federal authorities later charged Patten and the Cokers (father-son duo Peter Coker Sr. and Jr.) with securities fraud, accusing them of orchestrating parallel schemes across multiple shell companies.
Morina, New Jersey’s winningest high school wrestling coach, escaped legal consequences but faced an emotional reckoning. His trusted friend Patten had betrayed him, leaving Morina to grapple with public shame and the
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Originally published on Business Insider on 2/15/2026