CAMDEN, N.J. – A Camden County, New Jersey, man right now admitted fraudulently acquiring a federal Paycheck Safety Program (PPP) mortgage of $237,500, U.S. Lawyer Philip R. Sellinger introduced.
Cornell McCoy, 49, of Lawnside, New Jersey, pleaded responsible by videoconference earlier than U.S. District Choose Karen M. Williams in Camden federal court docket to an info charging him with one rely of financial institution fraud.
Based on paperwork filed on this case and statements made in court docket:
The Coronavirus Assist, Aid, and Financial Safety (CARES) Act is a federal legislation enacted in March 2020 and was designed to supply emergency monetary help to the hundreds of thousands of Individuals who’re struggling the financial results brought on by the COVID-19 pandemic. One supply of aid offered by the CARES Act was the authorization of tons of of billions of {dollars} in forgivable loans to small companies for job retention and sure different bills, by a program known as the Paycheck Safety Program (the “PPP”). To acquire a PPP mortgage, a qualifying small enterprise should apply and supply info on its operations, together with the variety of workers and payroll bills. Companies typically had to supply supporting documentation.
In February 2021, McCoy utilized for a PPP mortgage on behalf of Silver Cup Companies Group LLC, an organization that he owned. McCoy acknowledged on the applying that Silver Cup had 12 workers and a mean month-to-month payroll of $95,000. He additionally submitted federal tax varieties and returns that purported to indicate that Silver Cup paid $300,000 in wages throughout every quarter of 2019 and that McCoy earned greater than $800,000 in revenue from Silver Cup in 2019. In truth, Silver Cup had no workers apart from McCoy himself and paid no wages in 2019. The tax varieties submitted with the applying had been cast. In April 2021, the lender authorised the mortgage based mostly on the fraudulent software and disbursed $237,500 to a checking account managed by McCoy.
The cost of financial institution fraud carries a most penalty of 30 years in jail and a effective of $1 million. As a part of his responsible plea, McCoy agreed to make restitution within the full quantity of the PPP mortgage and agreed to forfeit the contents of the checking account to which the mortgage proceeds had been disbursed. Sentencing is scheduled for July 20, 2022.
U.S. Lawyer Sellinger credited particular brokers of the Federal Deposit Insurance coverage Company – Workplace of the Inspector Common, beneath the path of Patricia Tarasca, Particular Agent-in-Cost, New York Regional Workplace; particular brokers of the Social Safety Administration, Workplace of the Inspector Common, New York Discipline Division, beneath the path of Particular Agent in Cost Sharon MacDermott; particular brokers of the FBI’s South Jersey Resident Company, beneath the path of Particular Agent in Cost Jacqueline Maguire in Philadelphia; and particular brokers of the U.S. Division of Labor, Workplace of the Inspector Common, New York Area, beneath the path of Particular Agent in Cost Jonathan Mellone, with the investigation resulting in right now’s responsible plea.
The federal government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Lawyer Daniel A. Friedman of the U.S. Lawyer’s Workplace’s Legal Division in Camden.