Your Hometown Deli, the business at the center of the probe, was located in Paulsboro, New Jersey, over the Delaware River from Philadelphia.
The parent company, Hometown International, had merged with a bioplastics company.
The $100 million New Jersey deli, as Your Hometown Deli came to be known, was first brought to the public’s attention by investor David Einhorn in a letter to clients.
The securities fraud and securities price manipulation counts carry maximum penalties of 20 years in prison and a $5 million fine.
The conspiracy to commit securities fraud and conspiracy to manipulate securities prices counts each carry a maximum penalty of five years in prison.