Reddit co-founder Alexis Ohanian has purchased a minority stake in Chelsea FC Women, giving him an ownership stake in two of the most-valuable teams in women’s sports.

The founder of venture capital firm Seven Seven Six and husband of tennis legend Serena Williams paid 20 million pounds for a 10% stake in the English soccer team, according to a person familiar with the deal. Ohanian is also a part owner in the National Women’s Soccer League’s Angel City FC alongside Disney CEO Bob Iger and his wife, Willow Bay.

Ohanian’s Chelsea deal values the women’s club at 200 million pounds, according to the person familiar, making it the most valuable women’s team in the world based on current foreign exchange rates. As part of the deal, Ohanian will be given a seat on the team’s board.

“I’ve bet big on women’s sports before — and I’m doing it again,” Ohanian said in a post on social media site X confirming the stake.

Chelsea FC Women have won six consecutive Women’s Super League titles. Ohanian says he see the opportunity to grow a worldwide brand within women’s football.

“I’m confident Chelsea FC Women is the next global women’s sports brand,” he said.

Ohanian told CNBC’s “Squawk Box” on Thursday that one of the things that drew him to Chelsea was the team’s large social media following. Chelsea FC Women have 4 million followers on Instagram.

“As a social media guy, I look for heat online in the free market of attention,” Ohanian said. “If this were any other type of brand, there is a lot of revenue opportunity there.”

Ohanian also said he believes in the business model and that women’s sports have been undervalued too long. He said brands are only now starting to wake up to that value.

“We will see billion-dollar clubs in women’s soccer one day in the not-too-distant future,” he predicted.

Ohanian left Reddit in 2020 to focus on building a legacy for his two young daughters through sports and other investments.

He said in 2024 he had invested $250,000 from his daughters trust fund into Angel City FC. Ohanian said the investment made them the youngest owners in professional sports and multi-millionaires.

Williams also recently became part owner of WNBA expansion team the Toronto Tempo, and Ohanian has started a women’s track competition.

Bombas founder David Heath is stepping down from his role as CEO as the socks and apparel company looks to expand beyond its direct-to-consumer roots.

Bombas President Jason LaRose, a former Under Armour and Equinox executive, will take over as the company’s next CEO effective Thursday. Heath said he realized it was necessary for a retail veteran to lead the company through its next phase of growth.

“We’ve reached a size and scale that is beyond my expertise. I didn’t come from a big apparel company before … I found myself more so over the last 18 months saying, ‘I don’t know what to do next,’” Heath, who is staying at Bombas as its executive chair, told CNBC in an interview. “So then, when I looked at someone with Jason’s background … having that tried and true experience is what will set Bombas up to succeed for the next chapter and I think I feel more comfortable having someone with Jason’s experience in the driver’s seat.” 

LaRose, who spent six years at Under Armour and oversaw its North America business, takes the helm at a critical point in Bombas’ growth story. 

Bombas’ revenue has grown 22% in its current fiscal year through April, it’s reached more than $2 billion in lifetime sales and its EBITDA is at a “super healthy, double digit” margin, LaRose told CNBC. The company’s footwear segment, such as its ultra-popular Sunday Slipper, is expanding the fastest. The company expects footwear revenue will soar more than 70% this year, but socks are still growing steadily, with sales up 17% in April compared to the prior year. 

But in order to reach its goal of growing from a “Shark Tank” startup into a multibillion dollar company over the next five-to-10 years, Bombas needs to expand its wholesale presence. Retailers that primarily sell online like Bombas tend to reach a growth ceiling and need to turn to other channels to keep scaling profitably.

Under LaRose’s direction, Bombas is looking to grow its wholesale revenue from around 7% of sales to between 10% and 20%. The company also wants to test out physical stores. 

“More than 60% of socks in this country are sold in physical locations, you know, whether that’s stores we could open, or stores that we fill with our partners … the wholesale opportunity is big for us,” said LaRose. “It’s also a billboard for us, right? It’s a chance to tell our story. When the customer walks by, we have a chance to tell them about the mission every time, why we’re here, let them touch and feel the product, which is always important when you’re introducing somebody to a new apparel brand.” 

Bombas currently sells in Nordstrom, Scheels and Dick’s Sporting Goods, and unlike some of its peers, it isn’t considering Amazon as a wholesale channel. Instead, it’s looking to expand its assortment offered by its current partners, try out its own stores and perhaps bring on some new wholesalers — if they’re the right fit. 

Digitally native brands that have long enjoyed the benefits of a direct model, such as customer data and the ability to stay close to customers, are often wary about expanding too deeply into wholesale because it’s less profitable and it’s harder for brands to tell their stories. For a company like Bombas, which spent years developing what it calls the “most comfortable socks, underwear, and T-shirts” on the market, that storytelling is extremely important — especially at a price point of around $15 per pair of socks. 

However, it’s that very attitude that has led some to criticize the direct selling model because of how it can stymie growth and lead to unsustainable business models. Many of the early direct-to-consumer darlings have seen their valuations shrivel up as they chase profitability years after they were founded. E-commerce has become harder to do profitably, and at a certain point, stores and wholesale are a more effective and profitable customer acquisition tool for some companies than marketing online. Selling goods through wholesale channels allows brands to scale and acquire customers more profitably than just selling online.

Brands like Bombas that were early to move to wholesale — Heath joked that the company “focused on profitability before it was cool” — understand the need for expansion but have looked to be strategic about who they partner with. Growth is important, but so is maintaining a brand, which is critical to staying ahead of rivals. 

“As a DTC brand, we care so much about our brand and our story, it has to be somebody who’s going to do an excellent job taking care of our brand. We’re not out there to be out there,” said LaRose. “We’re looking at some other partners. We’ll continue to always look for people who we think strategically give us access to the right customer, you know, nothing to announce yet on that front, but we’ll keep looking.” 

Disclosure: CNBC owns the exclusive off-network cable rights to “Shark Tank.”

Netflix said Wednesday its cheaper, ad-supported tier now has 94 million monthly active users — an increase of more than 20 million since its last public tally in November.

The company and its peers have been increasingly leaning on advertising to boost the profitability of their streaming products. Netflix first introduced the ad-supported plan in November 2022.

Netflix’s ad-supported plan costs $7.99 per month, a steep discount from its least-expensive ad-free plan, at $17.99 per month.

“When you compare us to our competitors, attention starts higher and ends much higher,” Netflix president of advertising Amy Reinhard said in a statement. “Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves.”

Netflix also said its cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network.

Dick’s Sporting Goods is buying the struggling footwear chain Foot Locker for about $2.4 billion, the second buyout of a major footwear company in as many weeks as business leaders struggle with uncertainty over President Donald Trump’s tariffs.

Dick’s said Thursday that it expects to run Foot Locker as a standalone unit and keep the Foot Locker brands, which include Kids Foot Locker, Champs Sports, WSS and Japanese sneaker brand atmos.

“Sports and sports culture continue to be incredibly powerful, and with this acquisition, we’ll create a new global platform that serves those ever evolving needs through iconic concepts consumers know and love, enhanced store designs and omnichannel experiences, as well as a product mix that appeals to our different customer bases,” Dick’s CEO Lauren Hobart said in a statement.

Both companies are led by women. Hobart became CEO at Dick’s in 2021, while Mary Dillon has served as CEO of Foot Locker since 2022.

Foot Locker announced a turnaround plan in 2023 in part to help improve its relationship with big brands. Speaking at the J.P. Morgan Retail Round Up Conference last month, Dillon said that Foot Locker is working closely with Nike, specifically in categories including basketball, sneaker culture and kids.

Earlier this month, Skechers announced that it was being taken private by the investment firm by 3G Capital in a transaction worth more than $9 billion.

A Foot Locker store in San Diego.Kevin Carter / Getty Images file

The retail industry has been growing increasingly concerned over Trump’s trade war with other countries, particularly China. Athletic shoe makers have invested heavily in production in Asia.

Shares of sporting goods and athletic shoe companies have been under pressure all year. Foot Locker’s stock has plunged 41% this year. It is also facing pressure elsewhere, with major athletic companies like Nike and Adidas shifting their sales strategies.

Skechers had fallen almost 8% this year.

About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, according to the American Apparel & Footwear Association. Using factories overseas has kept labor costs down for U.S. companies, but neither they nor their overseas suppliers are likely to absorb price increases due to new tariffs.

Foot Locker, based in New York City, offers Dick’s a lot of potential, namely its huge real estate footprint, and would give the Pittsburgh company its first foothold overseas.

Foot Locker has about 2,400 retail stores across 20 countries in North America, Europe, Asia, Australia and New Zealand. It also has a licensed store presence in Europe, the Middle East and Asia. The company had global sales of $8 billion last year.

Jefferies analyst Jonathan Matuszewski said that about 33% of Foot Locker’s sales come from outside the United States. He anticipates that the combined company would generate approximately 12% of sales internationally on a pro forma basis.

The deal also broadens Dick’s customer base, with sneaker collectors anxiously anticipating new drops from Foot Locker.

Neil Saunders, managing director of GlobalData, said in an emailed statement that Foot Locker, which has a 4.3% share of the sporting goods market, would give an immediate boost to Dick’s.

“It would also give Dick’s substantially more bargaining power with national brands, especially in the sneaker space,” he added.

Foot Locker shareholders can choose to receive either $24 in cash or 0.1168 shares of Dick’s common stock for each Foot Locker share that they own.

Dick’s said that it anticipates closing on the Foot Locker deal in the second half of the year. The transaction still needs approval from Foot Locker shareholders.

Dick’s stock dropped more than 10% before the market open, while shares of Foot Locker surged more than 82%.

YouTube will stream the National Football League’s Week 1 game on Sept. 5 for free, the first time the dominant streaming platform has ever broadcast a live NFL game in its entirety.

The game, which Front Office Sports first reported will be between the Kansas City Chiefs and the Los Angeles Chargers, will take place in Sao Paulo, Brazil.

“Last year, people spent over 350 million hours watching official NFL content on YouTube, so it’s both fitting and thrilling to continue to build our relationship with our partners at the NFL,” YouTube Chief Business Officer Mary Ellen Coe said in a statement. “Streaming the Friday night game to fans for free around the world will mark YouTube’s first time as a live NFL broadcaster — and we’ll do it in a way that only YouTube can, with an interactive viewing experience and creators right at the center of the experience.”

The game will be available to all YouTube and YouTube TV users globally, except in Canada and certain other countries, and locally on broadcast television in the media markets of the participating teams, YouTube said in a statement.

YouTube is the most-watched streaming platform in the U.S., consisting of 12% of all viewership for March, according to Nielsen.

The NFL has an existing deal with YouTube TV for Sunday Ticket, the league’s out-of-market package of games. Those games require a subscription — either $480 per year without YouTube TV or $378 per year for YouTube TV subscribers. YouTube TV is a collection of linear TV networks that approximates a standard cable bundle.

The full 2025 NFL schedule will be released Wednesday at 8 p.m. ET.

Uber is giving commuters new ways to travel and cut costs on frequent rides.

The ride-hailing company on Wednesday announced a route share feature on its platform, prepaid ride passes and special deals week for Uber One members at its annual Go-Get showcase.

Uber’s new features come as the company accelerates its leadership position in the ride-sharing market and seeks to offer more affordable alternatives for users. It also follows last week’s first-quarter earnings as Uber swung to a profit but fell short of revenue estimates.

“The goal for us as we build our products is to put people at the center of everything, and right now for us, it means making things a little easier, a little more predictable, and above all, just a little more — or a lot more — affordable,” said Uber CEO Dara Khosrowshahi at the event.

Here are some of the big announcements from the annual product event.

Users looking to save money on regular routes and willing to walk a short distance can select a shared ride with up to two other passengers through the new route-share feature.

The prepopulated routes run every 20 minutes along busy areas between 6 a.m. and 10 a.m. and 4 p.m. and 8 p.m. on weekdays. The initial program is slated to kick off in seven cities, including New York, San Francisco, Boston and Chicago.

Uber said its new route-share fares will cost up to 50% less than an UberX option, and that it is working to partner with employers on qualifying the feature for commuter benefits. Users can book a seat from 7 days to 10 minutes before a pickup departure.

Riders on Uber can now prepurchase two different types of ride passes to hold fares on frequented routes during a one-hour period every day. For $2.99 a month, riders can buy a price lock pass that holds a price between two locations for one hour every day. The pass expires after 30 days or a savings total of $50.

The feature gives riders a way to avoid surge pricing.

Ride Passes roll out in 10 cities on Wednesday, including Dallas, Orlando and San Francisco, and can be purchased for up to 10 routes a month. Uber will charge users a lower price if the fare is cheaper than the pass at departure time.

The company also debuted a prepaid pass option, allowing users to pay in advance and stock up on regular monthly trips. Uber’s pass option comes in bundles of 5, 10, 15 and 20-ride increments, with corresponding discounts between 5% and 20%.

Both pass options will be available on teen accounts in the fall, Uber said. The route share and ride passes will be available in a new commuter hub feature on the app coming later this year.

Uber is also expanding its autonomous vehicle partnership with Volkswagen.

The company will start testing shared AV rides later this year and is aiming for a launch in Los Angeles in 2026.

Uber rolled out autonomous rides in Austin, Texas, in March through its agreement with Alphabet-owned Waymo and is preparing for an Atlanta launch this summer. The company announced the partnership in May 2023. Autonomous Waymo rides are also currently offered through the Uber app in Phoenix, but the company does not directly manage that fleet.

Khosrowshahi called AVs “the single greatest opportunity ahead for Uber” during the company’s earnings call last week and said the Austin debut “exceeded” expectations. The company previously had an AV unit that it sold in 2020 as it faced high costs and a series of safety challenges, including a fatal accident.

Along with Volkswagen and Waymo, Uber has joined forces with Avride, May Mobility and self-driving trucking company Aurora for autonomous ride-sharing and freight services in the U.S. The company has partnerships with WeRide, Pony.AI and Momenta internationally.

Uber is taking a page out of Amazon’s book by offering its own variation of the e-commerce giant’s beloved Prime Day, with special offers between May 16 and 23 for Uber One members.

Some of those deals include 50% off shared rides and 20% off Uber Black. The platform is also adding a new benefit of 10% back in Uber credits for users that use Uber Rent or book Lime rides.

UberEats also announced a partnership with OpenTable to allow users to book reservations and rides.

The new feature, powered by OpenTable, launches in six countries including the U.S. and Australia.

Through the partnership, users can book restaurant reservations and get a discount on rides. OpenTable members will also be able to transfer points to Uber and UberEats. The company is also offering OpenTable VIPs a six-month free trial of Uber One.

American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.

The apparel retailer said it expects revenue in the first quarter, which ended in early May, to be around $1.1 billion, a decline of about 5% compared to the prior-year period. American Eagle anticipates comparable sales will drop 3%, led by an expected 4% decline at intimates brand Aerie. American Eagle previously expected first-quarter sales to be down by a mid-single-digit percentage and anticipated full-year sales would drop by a low single-digit percentage. 

Shares plunged more than 17% in extended trading. 

When it reported fiscal fourth-quarter results in March, American Eagle warned that the first quarter was off to a “slower than expected” start, due to weak demand and cold weather. Conditions evidently worsened as the quarter progressed, and the retailer turned to steep discounts to move inventory.

As a result, American Eagle is expecting to see an operating loss of around $85 million and an adjusted operating loss, which cuts out one-time charges related to its restructuring, of about $68 million for the quarter. That loss reflects “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise, the company said. 

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein.

“We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.” 

The company added it is withdrawing its fiscal 2025 guidance “due to macro uncertainty and as management reviews forward plans in the context of first quarter results.” It is unclear if recent tariff policy changes had an effect on American Eagle.

Some companies bought inventory earlier than usual to plan for higher duties, but American Eagle repeatedly said in March that it was in a solid inventory position and was able to go after trends as customer preferences shifted. 

At the start of the first quarter, the company said it had some inventory outages and needed to supplement stock in a few key categories, particularly at Aerie, one of its primary growth drivers. 

Financial technology company Chime on Tuesday filed paperwork to go public on the Nasdaq. The company intends to file under the ticker symbol “CHYM.”

“Chime is a technology company, not a bank,” the company said in its prospectus, noting it’s not a member of the U.S. Federal Deposit Insurance Corp. Still, the company cited Bank of America, Capital One, Citibank, JPMorgan Chase, PNC Bank and Wells Fargo as competitors.

Most of Chime’s new members who arrange for direct deposit previously did direct deposit elsewhere, “most commonly with large incumbent banks,” the company said.

According to the filing, Chime picks up revenue from interchange fees associated with purchases that members make with Chime debit cards and credit cards. Banks collect interchange fees, which are generally a percentage of the transaction value, plus a set amount for each transaction depending on the rates determined by card networks such as Visa. The banks then pass money on to Chime.

In the March quarter, Chime generated $12.4 million in net income on $518.7 million in revenue. Revenue grew 32%. At the end of March, Chime had 8.6 million active members, up about 23% year over year. Average revenue per active member, at $251, was up from $231. It has members in all 50 states, and 55% of them female. The average member age is 36.

Around two-thirds of members look to Chime for their “primary financial relationship,” Chime said. The term refers to those who made at least 15 purchases using its card or received a qualifying direct deposit of at least $200 in the past calendar month.

Chime offers a slew of other services in addition to its cards. Eligible members with direct deposit can borrow up to $500 with a fixed interest rate of $5 for every $100 borrowed. The company doesn’t charge late fees or compound interest.

Following an extended drought, IPOs looked poised for a rebound when President Donald Trump returned to the White House in January. CoreWeave’s March debut provided some momentum. But Trump’s tariff announcement in April roiled the market and led companies including Chime as well as trading platform eToro, online lender Klarna and ticket marketplace StubHub to delay their plans.

EToro is now scheduled to debut this week, and digital health company Hinge Health issued its pricing range for its IPO on Tuesday, win an expected offering coming soon. Chime’s public filing is the latest sign that emerging tech companies are preparing to test the market’s appetite for risk. Last month Figma said it had filed confidentially for an initial public offering.

Chris Britt, Chime’s co-founder and CEO, told CNBC in 2020 that it would be ready for an IPO within the next 12 months. But in late 2021 markets turned negative on technology as inflation picked up, prompting central bankers to ratchet up interest rates.

Chime was founded in 2012 and is based in San Francisco. It ranked 22nd on CNBC’s 2024 Disruptor 50 list of privately held companies.

Investors include Crosslink Capital, DST Global, General Atlantic, Iconic Strategic Partners and Menlo Ventures.

— CNBC’s Ari Levy contributed to this report.

UnitedHealth Group announced a new chief executive Tuesday, a sudden and surprising change following the fatal shooting in December of its UnitedHealthcare subsidiary’s leader.

Andrew Witty stepped down from leading UnitedHealth for unspecified “personal reasons,” the company said. Stephen J. Hemsley, who served as chief executive from 2006 to 2017, will return to the role and remain board chairman. Witty will serve as a senior adviser to Hemsley, the company said in a news release. 

UnitedHealth has been the focus of sharp criticism over the health insurance industry’s practices and has seen its stock plummet in the past year. The Justice Department has investigated its business activities.

UnitedHealth’s shares fell more than 17% Tuesday. The stock, which is part of the 30-company Dow Jones Industrial Average, closed at $311.38 a share, well off its recent high of $630.73 in November.

The company also said that it has suspended its annual outlook for 2025, to include ‘more types of benefit offerings than seen in the first quarter’ and because ‘the medical costs of many Medicare Advantage beneficiaries new to UnitedHealthcare remained higher than expected.’

‘The company expects to return to growth in 2026,’ the statement added.

In December, United Healthcare CEO Brian Thompson was fatally shot in what police described as a “premeditated, preplanned targeted attack” in midtown Manhattan as he was walking to an investors’ conference. 

Luigi Mangione, now 27, was arrested after a five-day manhunt at a McDonald’s in Altoona, Pennsylvania.

He faces federal and state charges in New York and Pennsylvania in connection with the shooting. He has pleaded not guilty to the murder and terrorism charges in New York, and not guilty to federal stalking and murder charges. If convicted of federal charges, Mangione could be sentenced to death.

CAMDEN, N.J. — The father and son duo behind a stock fraud scheme involving the infamous $100 million New Jersey deli were sentenced to several months in prison Tuesday.

Peter Coker Jr. was sentenced to 40 months. With credit for time served, he owes about 12 months locked up. But he could be released sooner than that given how federal inmates are granted time off for good conduct.

Earlier Tuesday, the 56-year-old’s father, North Carolina businessman Peter Coker Sr., was sentenced to six months in jail, to be followed by six months of home confinement, for his role in the case.

The Cokers and a third man, James Patten, admitted to the scheme in orchestrated the fraudulent inflation of the share price of two companies to better position them for mergers with private firms.

One of the companies, Hometown International, ended up having a market capitalization of more than $100 million despite owning just a small, money-losing deli in South Jersey.

The other company, E-Waste, had an even larger market cap, despite having no business operations.

Coker Jr. was brutally attacked while in a Thai prison awaiting extradition in early 2023, his attorney said at his sentencing for securities fraud in New Jersey federal court on Tuesday.

Coker Jr. was set upon by as many as 10 fellow inmates in the Thai lock-up, his lawyer said. Coker Jr. was being held there after police found him in Thailand while under indictment in the United States for the securities fraud scheme involving the deli owner and a related shell company

Coker Jr.’s lawyer, John Azzarello, cited his time in the Thai prison and in the 26 or so months he has served in an Essex County jail, in asking a judge to sentence him to effectively time served, or only a few months more.

Azzarello called those conditions in both jails “inhumane.”

Azzarello also detailed how Coker Jr. was suffering from severe cirrhosis of the liver as the result of alcohol abuse — “a bottle of whiskey a day” — before he was arrested in Thailand.

He said Coker Jr. had been hospitalized several times for his condition, and that doctors were considering doing a liver transplant.

Coker Jr., speaking to Judge Christine O’Hearn in U.S. District Court in Camden, said, “This crime has changed me profoundly.”

“The assault and the horrors I experienced in Bangkok prison, I wouldn’t wish on my worst enemy,” Coker Jr. said, wearing a yellow one-piece jailhouse uniform.

“It was the lowest point in my life.”

He also expressed regret for his role in the scheme, which involved his father and another man.

“It’s very important to me that your honor and my parents know I wish I could go back,” and not commit the crime, Coker Jr. said.

“It kills me, every time I think about it, how my actions affected my parents,” he said.

“My parents should have never been associated with this abhorrent crime,” Coker Jr. said.

“My greed destroyed us both.”

Coker Jr. faces deportation after he serves his sentence. He renounced his U.S. citizenship in 2019, and holds citizenship in the Caribbean nation St. Kitts.

During his sentencing, Coker Sr. was ordered to pay a $500,000 fine and pay up to $644,000 in restitution.

“I do stand before you extremely remorseful for my actions,” Coker Sr. said as his wife, daughter, grandchildren, and friends looked on.

“I’m terribly sorry for my part. This episode has been the worst time of my life,” the 82-year-old Chapel Hill resident said. “I’m sorry for every investor who has been harmed by my actions.”

Federal sentencing guidelines had suggested a prison sentence of 51 to 63 months for Coker Sr.

But prosecutors said they wanted less time than that, namely the top end of a range of zero to 24 months that they stipulated when he pleaded guilty.

Judge O’Hearn said she would have sentenced Coker Sr. to much more time in jail if he was not as old as he is.

“This was a fraudulent scheme from the inception,” Judge O’Hearn said at the start of the hearing.

“The companies are, in fact, worthless, and there is no prospect for recovery,” O’Hearn said.

“This was a multi-year, very sophisticated fraudulent scheme involving a sort of esoteric corporate structure, of which I’ve learned more than I ever care to,” the judge said. “One that was illegal … and it caused harm.”

The judge opened the hearing by delivering a blow to defense lawyers, adopting prosecutors’ argument that there were nearly $5 million in losses from the scheme, which included investments by Duke and Vanderbilt universities.

“What is the motivation here other than greed? Because I don’t see it,” O’Hearn asked at one point, after noting that all three defendants were each worth millions of dollars apiece.

Coker Sr., who was a star college basketball player at Dartmouth and then North Carolina State, has a net worth of $6 million, the judge said.

Patten is due to be sentenced on June 10.

The younger Coker was not in court while his father was sentenced, because of a long delay in transporting him from a jail in Essex County. He has been detained there without bail since being extradited from Thailand in March 2023 following his arrest there as a fugitive.

Coker Sr.’s lawyer, Zach Intrater, asked O’Hearn to sentence him to no prison time after describing him as a good family man who never disputed his criminal conduct after he was first charged.

“I don’t think they make very many more like Pete anymore,” the defense attorney said. “He’s courtly, his manners are impeccable.”

Intrater repeatedly referenced Susan Coker, who has been married to Peter for 61 years, asking the judge to allow the couple to remain together for what remains of their lives.

“He bears responsibility for engaging in an offense that didn’t just hurt other peopl,e that didn’t just hurt his family, but that involved his son, his only son, and knowing that his son has been incarcerated in part from his own actions and knowing what has happening to his son during that term of incarceration.”

“Judge, I think having to live with that is a punishment that could be worse than even what you could impose,” Intrater said.

The attorney also argued that Coker Sr. was not the “prime mover” for the scheme.

Susan Coker told the judge, “He’s just a wonderful guy.”

“I know if he had a second chance, he never would have done any of this,” Susan said, her voice cracking.

Coker Sr. and Patten were arrested in September 2022, months after both Hometown merged with a bioplastics company, and more than a year after E-Waste did its own merger with an electric vehicle company.

Coker Jr., who previously resided in Hong Kong, was arrested months later.

The men were indicted more than a year after CNBC detailed a web of questionable connections between Hometown and E-Waste, as well as the prior criminal and civil court cases of Coker Sr. and of Patten, and consulting deals with both companies that benefited those two men. 

The fraud came to light in April 2021 when hedge fund manager David Einhorn wryly noted that Hometown International’s market capitalization was $100 million despite owning just one asset whose annual revenue from selling sandwiches, soda, and chips was less than $36,000 for the past two years combined.

“The pastrami must be amazing,” Einhorn wrote in a letter to clients.

Intrater on Tuesday said that he believed the case was prosecuted in large part because of the Einhorn letter, which generated significant coverage in the media.

The scam, which ran from 2014 through September 2022, coordinated trading of the stocks of the companies, creating the false impression of demand for shares that traded on OTC Marketplace.

The scheme began when Patten suggested the creation of Hometown as an umbrella corporation to his friend Paul Morina, a high school principal and renowned wrestling coach. The company would go on to own the Your Hometown Deli in Paulsboro, New Jersey.

Morina and the other deli owner were unaware of Patten’s scheme to manipulate Hometown’s stock.

Hometown’s stock price rose by more than 900% during the scheme. The price of E-Waste rose by nearly 20,000%.

In 2010, Patten pleaded guilty in New Jersey federal court to a mail fraud charge in connection with sending a client a false financial statement to cover up bad investments he made using her money. He was sentenced to 27 months in prison in that case.

Four years before, Patten was barred by the broker-dealer FINRA from acting as a stockbroker for failing to satisfy an arbitration award of more than $753,000, violating securities laws, and unauthorized trading for churning a client’s account. 

Coker Sr. years ago was sued for allegedly hiding money from creditors and alleged business-related fraud. He denied wrongdoing in those cases.