OT: New Jersey high school wrestling coach is CEO of $100 million firm that owns one deli

[tikk10]

The latest on this deal:

Three men charged with fraud in $100 million New Jersey deli scheme

The indictments are the latest shocking twist involving Your Hometown Deli in Paulsboro, New Jersey.

www.cnbc.com

Molina wasn't charged in this round. Maybe he was just a patsy.

Yeah, I think it was probably the case that Morina knew little about what was happening given what's otherwise known about the other players. But I'd still like to know how the DOJ squared away the fact that Morina was a 20% shareholder, because on paper, at least, he stood to profit from all this. The DOJ not prosecuting him suggests a scenario where he perhaps never stood to substantially gain.

 

[horraybeer]

I wish all these Jersey boys would not pollute NC.

 

[Hoosier Lion]

Yeah, I think it was probably the case that Morina knew little about what was happening given what's otherwise known about the other players. But I'd still like to know how the DOJ squared away the fact that Morina was a 20% shareholder, because on paper, at least, he stood to profit from all this. The DOJ not prosecuting him suggests a scenario where he perhaps never stood to substantially gain.

He’s cooperating with the DOJ, book it

 

[82bordeaux]

Yeah, I think it was probably the case that Morina knew little about what was happening given what's otherwise known about the other players. But I'd still like to know how the DOJ squared away the fact that Morina was a 20% shareholder, because on paper, at least, he stood to profit from all this. The DOJ not prosecuting him suggests a scenario where he perhaps never stood to substantially gain.

If he still owns 20%, he's a patsy.

 

[tikk10]

He’s cooperating with the DOJ, book it

I imagine so, but I wonder to what degree they even need his testimony. 18 U.S.C. 1348 is the charge they're facing and that could mean a wide range of activity, from selling unregistered securities to Ponzi schemes. If Morina was just doing what they were telling him to do, he's unlikely to be privy to the conversations going to conspiracy.

The mechanism used here (the SPAC) is relatively new and sketchy, but it's also ostensibly legal. So whatever else happened here to drag the DOJ in isn't yet clear.

 

[7brwnpsu]

The article doesn't say much about how the values were pumped up.

"Prosecutors said the tactics “artificially inflated” the values of Hometown International and E-Waste stock by 939% and 19,900%, respectively."

Who would invest in this?


Very few SPACs have worked out and many are now running out of time to find investments, the purpose of the SPAC, and must return the funds to the investors by law.

Monty Hall and his Let's Make a Deal offered better returns.