Motion for Order Directing Clerk of Court to Amend Victim List — United States v. Cornell McCoy (D.N.J.)

Record facts

U.S. District Court, District of New Jersey · No. 1:22-cr-00186-KMW · Doc. 28 · 2025-07-14 · Docket on CourtListener

Full text

ALINA HABBA 
United States Attorney 
JORDAN M. ANGER 
Assistant United States Attorney 
 
 
 
970 Broad Street, Suite 700 
Newark, New Jersey 07102 
Tel. (973) 645-2829 
jordan.anger@usdoj.gov 
UNITED STATES DISTRICT COURT 
DISTRICT OF NEW JERSEY 
UNITED STATES OF AMERICA, 
 
 
      v. 
 
CORNELL MCCOY, 
                                 Defendant. 
HON. KAREN M. WILLIAMS, U.S.D.J. 
C.A. No. 1:22-cr-186 (KMW) 
NOTICE OF MOTION FOR ORDER 
DIRECTING CLERK OF COURT 
TO AMEND VICTIM LIST 
 
 
PLEASE TAKE NOTICE that the United States of America, by Alina Habba, 
United States Attorney for the District of New Jersey (Jordan M. Anger, Assistant 
United States Attorney, appearing) will, on a date to be set by the Court, move, 
pursuant to Federal Rule of Criminal Procedure 36 and 18 U.S.C. § 3664(j)(1) for 
entry of an order that the Clerk of the Court shall amend the victim list in the above 
captioned case to replace victim/payee Ready Capital with the Small Business 
Administration for the full amount of the restitution owed. 
 
 
 
 
 
 
 
Respectfully submitted, 
 
 
 
 
 
 
 
ALINA HABBA 
 
 
 
 
 
 
 
United States Attorney 
 
 
 
 
 
 
 
 
 s/ Jordan M. Anger 
 
 
 
 
 
 
 
 
   By:   JORDAN M. ANGER 
 
 
 
 
 
 
 
Assistant U.S. Attorney 
July 14, 2025 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 1 of 11 PageID: 179

UNITED STATES DISTRICT COURT 
DISTRICT OF NEW JERSEY 
UNITED STATES OF AMERICA, 
 
 
      v. 
 
CORNELL MCCOY, 
 
                                 Defendant. 
HON. KAREN M. WILLIAMS, U.S.D.J. 
C.A. No. 1:22-cr-186 (KMW) 
MOTION FOR ORDER DIRECTING 
CLERK OF COURT TO AMEND 
VICTIM LIST  
 
I. 
INTRODUCTION 
 
 
The United States respectfully requests that the Court issue an Order 
directing the Clerk of the Court to amend the victim list in the above captioned case 
to replace Ready Capital as a victim/payee and order that all restitution payments be 
made to the Small Business Administration (SBA) because the SBA has assumed the 
debt for unpaid loan and has reimbursed Ready Capital for their losses. 
II. 
FACTS 
 
Defendant Cornell McCoy plead guilty to Bank Fraud on or about March 14, 
2022 and was sentenced to, inter alia, 6 months of incarceration and to pay 
$251,743.49 in restitution. See Dkt. #22.  The Court ordered that the restitution be 
paid to Ready Capital ($239,868.49) and the SBA ($11,875.00).  Id. at 7. On or about 
May 12, 2025, the SBA assumed the debt and repaid Ready Capital1 for its losses.  
See attached Ex. A.  
 
 
 
1  
The undersigned has contacted counsel for Ready Capital and they consent to 
the filing of this motion. 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 2 of 11 PageID: 180

III.  
THE COURT SHOULD ORDER THAT THE CLERK AMEND 
THE VICTIM LIST IN THIS CASE  
 
 
A Court “shall order restitution to each victim in the full amount of each 
victim’s losses . . . .”  18 U.S.C. § 3664(f)(1)(A).  Further, “[i]n no case shall the fact 
that a victim has received or is entitled to receive compensation with respect to a loss 
from insurance or any other source be considered in determining the amount of 
restitution.” 18 U.S.C. § 3664(f)(1)(B).  Instead,  
If a victim has received compensation from insurance or any other 
source with respect to a loss, the court shall order that restitution be 
paid to the person who provided or is obligated to provide the 
compensation . . . 
 
18 U.S.C. § 3664(j)(1). 
 
In this case, the SBA has paid money to the victim Ready Capital that 
represents the full amount of the losses intended to be compensated by the issuance 
of the restitution order.  As a result, the SBA should be compensated for that 
payment. 
The Court is authorized to make amendment pursuant to Fed.R.Crim.P. 36, 
which reads: 
Clerical Error: After giving any notice it considers appropriate, the court 
may at any time correct a clerical error in a judgment, order, or other 
part of the record, or correct an error in the record arising from oversight 
or omission. 
Fed.R.Crim.P. 36 (emphasis added). 
The amendment sought is clearly clerical in nature as it does not seek to add a single day to 
Defendant’s incarceration or a penny to his restitution debt.  As a result, district courts 
routinely rely on this provision as a basis for adding or altering victims to restitution 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 3 of 11 PageID: 181

orders long after the sentencing. See, e.g., U.S. v. Jones, 2015 WL 525184, at *4 (E.D. 
Pa. Feb. 9, 2015) (granting motion to add insurance company to victim list of 
restitution order three and a half years after sentencing because “[u]nder Federal 
Rule of Criminal Procedure 36, however, this Court had the authority and jurisdiction 
to grant this relief”), aff’d 629 Fed.App’x 192 (3d Cir. 2015); see also U.S. v. Stile, 2019 
WL 501456 (D. Maine Feb. 8, 2019) (amending the restitution order 3½ years after 
sentencing to include insurance company under § 3664(j)(1)). 
 
The Third Circuit specifically affirmed a district court’s reliance on Rule 36 as 
a basis for amending a restitution order three and half years later to substitute in an 
insurance company under 18 U.S.C. § 3664(j)(1).  See, e.g., Jones, 2015 WL 525184, 
aff’d 629 Fed.App’x 192 (3d Cir. 2015).  As the district court held, “[t]he Third Circuit 
and other courts have consistently relied on Rule 36 to make modifications to 
judgments of sentences where the corrections are deemed non-substantive.”  Id. at *4 
(listing cases).  And, as made clear in that language, the substitution of an insurance 
company or other payee into a restitution order pursuant to § 3664(j)(1) is a “non-
substantive” correction.  See also United States v. Portillo, 363 F.3d 1161 (11th Cir. 
2004) (trial court correctly changed the payees in a restitution order under Rule 36 
from the Georgia Bureau of Investigation to the six aliens directly harmed by 
defendant’s crime); Hatten v. United States, 2009 U.S. Dist. LEXIS 131142, at *28-29 
(S.D. Tex. Apr. 27, 2009) (Rule 36 motion granted to change the restitution victim 
from Visa USA to the 190 financial institutions actually defrauded). 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 4 of 11 PageID: 182

Similarly, the Nineth Circuit in U.S. v. Hankins, 858 F.3d 1273 (9th Cir. 2019), 
found that the district judge has the authority – a full fourteen years after sentencing 
– to amend the judgment to name a new payee of the restitution over the objections 
of both the defendant and the victim.  Id. at 1279-1280.2 
As aptly explained in Hankins: 
 
We do not view the redirection of restitution as violating the rule that 
a district court cannot order restitution absent explicit statutory 
authority. [. . .] No one disputes that the district court entered a valid 
restitution order at the outset.  The process of deciding where to send 
restitution payments already ordered is distinct from the authority to 
order restitution in the first instance. 
Id at 1280-81 (citations omitted).3 
Similarly, the court in Stile held: 
In amending the judgment to reflect the amounts E.W. Moore and 
Hanover Insurance paid, the Court has not changed the substance of the 
restitution order. Mr. Stile still owes the same amount, $13,306.93, the 
Court ordered him to pay on May 29, 2015. If E.W. Moore continued to 
receive money from Mr. Stile above the $1,000.02 it was entitled to 
receive, it would been required to forward the excess proceeds to 
Hanover Insurance. In conformance with § 3664(j)(1), instead of 
continuing to mandate a round-about method of payment, the Court 
corrected a clerical error.  
 
 
2 It is also worth noting that years earlier, the district court in Hankins already 
amended the judgment to substitute the restitution payee to a different victim a full 
ten years after the defendant was sentenced and nine years after the original victim 
assigned its interest in the restitution.  Id. at 1275 (“In 2011, the district court entered 
an order substituting Horton as the assigned victim.”). 
 
3 See also id. at 1278 (“Put simply, the district court ordered what makes practical 
sense within the spirit and confines of the MVRA: it did not modify the sentence itself 
but redirected payments to the Fund.”). 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 5 of 11 PageID: 183

Stile, at * 7 (emphasis added) (citing Fed.R.Crim.P. 36); see also Jones, at *5 (the 
substitution order made a “non-substantive correction to Petitioner’s restitution 
order”).   
In this case, the United States seeks only to redirect a portion of the restitution 
to the SBA without altering the total restitution due by a single penny. Accordingly, 
pursuant to Fed.R.Crim.P. 36 and 18 U.S.C. § 3664(j)(1), this Court has the 
jurisdiction and authority to make the minor clerical, non-substantive correction to 
the Defendant’s order of restitution to permit all future payments to be paid to the 
SBA. 
IV. 
CONCLUSION 
 
Based on the foregoing, the Court should order the Clerk to amend the victim 
list in this case to replace Ready Capital as a victim/payee direct all future payments 
to be made to the SBA. 
 
DATED:  July 14, 2025 
 
 
 
Respectfully submitted, 
 
 
 
 
 
 
 
 
ALINA HABBA 
 
 
 
 
 
 
 
United States Attorney 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 s/ Jordan M. Anger          
 
 
 
 
 
 
 
 
JORDAN M. ANGER 
 
 
Assistant United States Attorney 
 
 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 6 of 11 PageID: 184

UNITED STATES DISTRICT COURT 
DISTRICT OF NEW JERSEY 
 
UNITED STATES OF AMERICA, 
 
 
      v. 
 
CORNELL MCCOY, 
 
                                 Defendant. 
HON. KAREN M. WILLIAMS, U.S.D.J. 
C.A. No. 1:22-cr-186 (KMW) 
[PROPOSED] ORDER 
 
Pursuant to the Application of the United States and for good cause shown, 
IT IS ORDERED that the Clerk of the Court shall amend the victim list in the 
above captioned cases to remove Ready Capital as a victim/payee and direct all 
future restitution payments to the Small Business Administration. 
DATED: _________________, 2025 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
 
 
KAREN M. WILLIAMS 
UNITED STATES DISTRICT JUDGE 
 
 
 
 
 
 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 7 of 11 PageID: 185

EXHIBIT A 
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 8 of 11 PageID: 186

Small Business Administration
Transcript of Account
Name
Silver Cup Services Group LLC
Ending Balances
Loan Program
1050 - PPP Program - CARES
Transcript
LAS/ELIPS
Difference
Loan Number
6130238605
Current Loan Status
Code
6
Principal Balance
$235,010.35
$235,010.35
$0.00
Loan Approval Date
03/20/2021
Loan Type
27
Accrued Int Balance
$3,975.69
$3,975.69
$0.00
Payable Balance
$0.00
$0.00
$0.00
Payoff Balances
Payoff Date
Principal
Accrued Interest
Chargeoff Interest
Interest to Payoff Date
Payoff Amount
Daily Interest
05/12/2025
$235,010.35
$8,883.86
$4,908.17
$83.70
$243,977.91
$6.4386397
Transaction History
Effective
Date
Int
Days
INT
Rate
Remittance
TC
Disburse
CPC
Remittance
Principal
Interest
Accrued
Interest
Principal
Balance
Accrued
Interest
Balance
Changeoff
Interest
Balance
Payable
Balance
Acct
4020
Payment
Application
04/04/2023
0
1.000%
195
$-241,475.69
$0.00
$237,500.00
$0.00
$3,975.69
$237,500.00
$3,975.69
$0.00
$0.00
$0.00
PO
04/07/2023
3
1.000%
416
$0.00
$0.00
$0.00
$0.00
$0.00
$237,500.00
$3,975.69
$19.52
$0.00
$19.52
PO
07/18/2024
468
1.000%
385
$0.00
$547.90
$-547.90
$0.00
$0.00
$236,952.10
$3,975.69
$3,064.73
$0.00
$3,045.21
PO
08/29/2024
42
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$236,809.17
$3,975.69
$3,337.39
$0.00
$272.66
PO
09/19/2024
21
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$236,666.24
$3,975.69
$3,473.64
$0.00
$136.25
PO
10/24/2024
35
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$236,523.31
$3,975.69
$3,700.58
$0.00
$226.94
PO
11/07/2024
14
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$236,380.38
$3,975.69
$3,791.30
$0.00
$90.72
PO
12/19/2024
42
1.000%
385
$0.00
$714.63
$-714.63
$0.00
$0.00
$235,665.75
$3,975.69
$4,063.30
$0.00
$272.00
PO
01/23/2025
35
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$235,522.82
$3,975.69
$4,289.28
$0.00
$225.98
PO
02/05/2025
13
1.000%
385
$0.00
$83.68
$-83.68
$0.00
$0.00
$235,439.14
$3,975.69
$4,373.16
$0.00
$83.88
PO
02/27/2025
22
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$235,296.21
$3,975.69
$4,515.07
$0.00
$141.91
PO
03/27/2025
28
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$235,153.28
$3,975.69
$4,695.57
$0.00
$180.50
PO
04/29/2025
33
1.000%
385
$0.00
$142.93
$-142.93
$0.00
$0.00
$235,010.35
$3,975.69
$4,908.17
$0.00
$212.60
PO
Summary: $-241,475.69
$2,489.65
$235,010.35
$0.00
$3,975.69
$235,010.35
$3,975.69
$4,908.17
$0.00
$4,908.17
LISTED ABOVE IS A TRANSCRIPT OF ACCOUNT AS OF THE DATES INDICATED, TAKEN FROM THE RECORDS OF THIS AGENCY.
Authorized Signature
Date
                               1 / 3
5-12-2025
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 9 of 11 PageID: 187

Small Business Administration
SMALL BUSINESS ADMINISTRATION
Office of Performance, Planning, and the Chief Financial Officer
Program Accounting Division
Loan Accounting Branch
Denver, CO 80259
CERTIFICATE OF INDEBTEDNESS
I, Patrick Henning, Lead Accountant, Loan Accounting Branch, Program Accounting Division, Office of Performance,
Planning, and the Chief Financial Officer, Small Business Administration, do hereby certify as such officer that I have the
authority to make this Certificate and that the financial records of said Small Business Administration are under my
custody including the records which are maintained in connection with a loan to: Silver Cup Services Group LLC
6130238605
Enclosed is a Statement of Account and Transcript of Account relating to said loan, certified as true by, Patrick Henning,
Lead Accountant, Program Accounting Division, Loan Accounting Branch, Office of Performance, Planning, and the Chief
Financial Officer, Small Business Administration. Said Statement of Account and Transcript of Account are true and
correct to the best of my personal knowledge and from my examination of the books and records of the Small Business
Administration with respect to said loan and are hereby incorporated with and made part of this certificate.
Executed this Monday 12th of May 2025
Patrick Henning, Lead Accountant
Authorized Signature and Title
I, Jerry Klein, a Notary Public in and for the State of Colorado, do hereby certify that the above-named Accountant signed
this document, is employed by the United States Small Business Administration, and that such officer has custody of the
official financial records of the Small Business Administration.
My commission expires:03/15/2028
Jerry Klein
                               2 / 3
Patrick Hennin
Jerry Klein
E Notary 20244010885-211518
JERRY 
KLEIN
Digitally signed by 
JERRY KLEIN 
Date: 2025.05.12 
07:52:39 -06'00'
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 10 of 11 PageID: 188

Small Business Administration
SMALL BUSINESS ADMINISTRATION
Office of Performance, Planning, and the Chief Financial Officer
Program Accounting Division
Loan Accounting Branch
Denver, CO 80259
CERTIFIED STATEMENT OF ACCOUNT
As of 05/12/2025
Loan Number:
6130238605
Lender Name:
Readycap Lending, LLC
Borrower Name:
Silver Cup Services Group LLC
Borrower Address:
33 Charman Ave
Lawnside, NJ 08045-1658 US
Total Amount Disbursed by Lender to Borrower:
Loan
$237,500.00
Less: Principal Payments
$0.00
Less: Principal Purchased
$237,500.00
                              Lender Principal Balance
$0.00
Total Amount Disbursed by SBA to Lender:
Principal Purchased
$237,500.00
Less: Principal Payments
$-2,489.65
Add: Purchased and Accrued Interest
$8,967.56
Add: PPP Processing Fee
$11,875.00
                              SBA Charges Outstanding
$255,852.91
                              Total Indebtedness
$255,852.91
Interest rate on loan is 1.000%. Interest calculated thru 05/12/2025 Daily interest rate is currently accruing at a rate of
$6.44 per day.
Date of Last Transaction
Interest Paid Through
04/29/2025
N/A
Certified to be a true and accurate statement as reflected by the official accounting records of the Small Business
Administration
05/12/2025
Patrick Henning, Lead Accountant
Authorized Signature and Title
Date
SBA FORM 596 B (8-81) 
                               3 / 3
Patrick Hennin
A th
i
d Si
Case 1:22-cr-00186-KMW     Document 28     Filed 07/14/25     Page 11 of 11 PageID: 189

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