James Patten has been sentenced to 21 months in prison in the notorious New Jersey deli fraud case, according to CNBC. The case became widely known because a small, money-losing deli was tied to a publicly traded company that at one point reached a valuation of roughly $100 million.
Authorities said Patten played an important role in the stock manipulation scheme. The unusual market value attached to the deli drew national attention and turned the case into a symbol of excess and abuse in thinly traded public companies.
The fraud caused losses of more than $5 million for victims, the report said. Those affected included two U.S. universities, highlighting how the damage extended beyond retail investors and into larger institutions.
Patten’s sentencing is the latest major development in a case that exposed how a lightly traded public company could be used in an alleged market manipulation operation. The New Jersey deli fraud story has remained one of the most memorable recent examples of questionable valuations and securities misconduct.
