James Patten seeks no-prison sentence in New Jersey deli fraud case

The final defendant awaiting sentencing in the New Jersey deli stock manipulation case is asking a federal judge for no prison time, even though he has a prior felony conviction. James Patten, a former stockbroker from WinstonSalem, North Carolina, is scheduled to be sentenced on July 21 in Camden, New Jersey. In court filings, Patten’s lawyer argued that a lighter sentence is appropriate because Patten was an employee in the scheme, expressed remorse, and has had recent health issues, including seizures. Prosecutors are asking for 12 to 18 months in prison, saying a custodial sentence is still needed because Patten returned to fraud after serving time for an earlier mail fraud conviction. Patten pleaded guilty in December 2023 in the case involving Hometown International and EWaste, two thinly traded companies whose share prices were allegedly inflated to support reverse merger plans. One of the companies owned a small deli in Paulsboro, New Jersey, and the scheme at one point pushed the combined market value of the companies above $100 million. Patten said in a letter to the judge that he regrets joining the scheme and takes responsibility for his role. His lawyer also said Patten has been working since his plea, including jobs with CocaCola and at a brewery, and submitted letters from family and friends in support of leniency.