Fraudster Arrested after Cheating the US Stock Market

Peter Coker Junior, the ex-chair of South Shore Holdings which operated the failed gambling resort The 13, has been arrested in Phuket last Wednesday. Coker was wanted by Interpol because of his involvement in financial fraud.

Coker Used to Chair a Business Which Wanted to Get Into Gambling

As reported by the Bangkok Post, Coker was eventually found in a hotel room in Phuket, Thailand, where he was arrested following joint action by the local Central Investigation Bureau and the US Federal Bureau of Investigation. The operation was led by Montri Khetkhan and the FBI.

Coker was the chairman of South Shore Holdings, the company behind The 13, for years. The Macau-based hotel was supposed to be a booming gambling and hospitality venue. In the end, various challenges forced the property to open with no gambling facilities and a limited number of operational hotel rooms.

The reason for Coker’s arrest, however, lies elsewhere.

Coker, assisted by his father, Peter Coker Senior, and James Patten, participated in a fraudulent operation to manipulate US stock markets. In addition, the three men allegedly committed further acts of wire fraud and money laundering.

Coker Jr’s two allies were arrested last year. Coker managed to escape arrest, fleeing to Thailand. He was later tracked to a hotel room and promptly arrested.

Coker Cheated the US Market

The former chairman of South Shore Holdings was on Interpol’s red and black notice lists and was wanted for his involvement in financial fraud. According to the allegations, Coker and his accomplices manipulated stock markets. The US Attorney’s Office claims that the three men set up a reverse merger of two public companies and later sold the shares of both companies for monetary gain.

The two companies in question are Hometown International and E-Waste. Coker and his associates artificially bloated the prices of the two entities by orchestrating fake trades to simulate interest in the businesses.

This tactic proved to be very efficient, resulting in Hometown International’s stock rising by 939% and E-Waste’s stock skyrocketing by a whopping 19,900%. The first company had reached a stock holding of 8 million shares, with a share costing around $13.

Luckily, the suspicious activity eventually caught the attention of law enforcers. Because of his fraud, Coker risks a fine of more than $10 million and may spend decades in jail, if convicted.