Paulsboro Deli Fraud Scheme Ensnares Coaches, Endowments, and Wall Street

A $100 million stock manipulation case involving a small-town deli, two university endowments, and a web of fraud

Published on Feb. 15, 2026

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A $100 million fraud scheme centered around a small deli in Paulsboro, New Jersey has ensnared a high school wrestling coach, his Wall Street friend, and two prestigious university endowments. The deli, owned by Paul Morina and James Patten, became the sole asset of a publicly traded shell company, Hometown International, which reached a market cap of $113 million despite earning less than $36,000 in revenue over two years. The scheme involved stock manipulation, reverse mergers, and the involvement of hedge funds and university endowments from Duke and Vanderbilt.

Why it matters

This case highlights the vulnerabilities of the stock market, particularly the over-the-counter pink sheets, to fraud and manipulation. It also raises questions about the due diligence practices of large institutional investors like university endowments. The involvement of a beloved high school wrestling coach has rocked the small town of Paulsboro, where the deli and wrestling club were central to the community.

The details

Morina and Patten, childhood friends and former high school wrestling teammates, opened the Your Hometown Deli in 2015 as part of a plan to take the company public through a reverse merger. They enlisted the help of Peter Coker Sr. and his son Peter Coker Jr., who used nominee entities and coordinated trading to artificially inflate the stock price. Duke and Vanderbilt University endowments each invested millions into Hometown International, unaware of the fraud. The scheme unraveled in 2021 when hedge fund manager David Einhorn exposed the deli's astronomical valuation compared to its modest sales.

  • In May 2014, Patten and Coker incorporated Hometown International as a private company with the deli as its sole subsidiary.
  • On October 14, 2015, Your Hometown Deli opened its doors in Paulsboro.
  • On October 20, 2019, Hometown International began trading on the Pink Market under the initials HWIN for $1 per share.
  • In April 2020, Duke and Vanderbilt each approved the purchase of $1.25 million worth of Hometown International shares.
  • In April 2021, Hometown International's stock price reached $14 per share, giving it a market cap of over $113 million.

The players

Paul Morina

The high school wrestling coach and principal of Paulsboro High School who co-owned the Your Hometown Deli and served as president, CEO, and CFO of Hometown International.

James Patten

Morina's childhood friend and former high school wrestling teammate who helped finance the deli and was involved in the stock manipulation scheme.

Peter Coker Sr.

A North Carolina money manager who helped create the publicly traded shell company that Hometown International merged with.

Peter Coker Jr.

The son of Peter Coker Sr. who was involved in orchestrating the parallel stock manipulation schemes involving Hometown International and another shell company, E-Waste Corporation.

Manoj Jain

The co-founder and co-chief investment officer of Maso Capital, the Hong Kong asset management firm that invested Duke and Vanderbilt University endowment funds into Hometown International.

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What they’re saying

“This crime has changed me profoundly. It kills me, every time I think about it, how my actions affected my parents. My parents should have never been associated with this abhorrent crime. My greed destroyed us.”

— Peter Coker Jr. (Business Insider)

“I'm terribly sorry for my part. This episode has been the worst time of my life. I'm sorry for every investor who has been harmed by my actions.”

— Peter Coker Sr. (Business Insider)

“I love the sport of wrestling so much, I love these kids. I love everybody who's always supported us. I want to thank everybody for sticking around.”

— Paul Morina, High School Wrestling Coach (Business Insider)

What’s next

Patten is scheduled to be sentenced in May 2026 and faces up to 20 years in prison. The Cokers have already been sentenced, with Peter Coker Sr. receiving 6 months in prison and Peter Coker Jr. receiving 40 months.

The takeaway

This case highlights the vulnerabilities of the stock market, particularly the over-the-counter pink sheets, to fraud and manipulation. It also raises serious questions about the due diligence practices of large institutional investors like university endowments. The involvement of a beloved high school wrestling coach has rocked the small town of Paulsboro, where the deli and wrestling club were central to the community.