Attachment A, Stipulation of Facts (D. Md., Dkt. 34-1, filed 10/27/22)

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Attachment A, a Stipulation of Facts filed October 27, 2022 as Document 34-1 in Case 8:22-cr-00308-DLB, in which the parties stipulate that if the case had proceeded to trial the government would have proven the stated facts beyond a reasonable doubt. It names the defendant as Sherrie Lynne Bryant and describes her as a managing member of NOW LLC. The stipulation states that on March 30, 2020 Bryant submitted an EIDL application for $89,500 and gave false answers about revenue and criminal history. It states that a PPP application followed on April 28, 2020 and that a request to increase the EIDL amount to $388,000 was submitted on April 22, 2021. It states that Bryant obtained at least $419,100.00 in loan proceeds and that a portion was used for personal expenses.

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Case 8:22-cr-00308-DLB Document 34-1 Filed 10/27/22 Page 1 of 3

ATTACHMENT A

STIPULATION OF FACTS

The undersigned parties stipulate and agree that if this case had proceeded to trial, this
Office would have proven the following facts beyond a reasonable doubt. The undersigned parties
also stipulate and agree that the following facts do not encompass all of the evidence that would
have been presented had this matter proceeded to trial.

Between at least March 2020 and July 2021, and at all times relevant to the conduct
described below, the defendant SHERRIE LYNNE BRYANT (“BRYANT”) was a resident of
Maryland.

The Economic Injury Disaster Loan (“EIDL”) program was a Small Business
Administration (“SBA”) program that provided low-interest financing to small businesses renters,
and homeowners in regions affected by declared disasters. During the COVID-19 pandemic, the
SBA was authorized to provide EIDLs to eligible small businesses experiencing substantial
financial disruption due to the COVID-19 pandemic and to issue advances of $10,000. The amount
of the advance was determined by the number of employees the applicant certified having The
advances did not have to be repaid. In order to obtain an EIDL and advance, a qualifying business
was required to submit an application to the SBA and provide information about its operations,
such as the number of employees, gross revenues for the 12-month period preceding the disaster,
and cost of goods sold in the 12-month period preceding the disaster. In the case of EIDLs for
COVID-19 relief, the 12-month period was that preceding January 31, 2020. The applicant was
also required to electronically certify that all the information in the application was true and correct
to the best of the applicant’s knowledge.

In March of 2020, Congress passed the Coronavirus Aid, Relief and Economic § ecurity
(“CARES”) Act, of which the Paycheck Protection Program (“PPP”) was one component. Through
the PPP, Congress authorized the SBA to award forgivable loans to small businesses so th ry could
continue to pay salary and wages to their employees. In order to obtain PPP funding, business
owners must submit an application io a participating financial institution. The financial institution
then funds the PPP using their own money, which is guaranteed by the SBA. Similar to the EIDL
application process, the applicant seeking a PPP loan is required to disclose to participating
lenders, among other things, the applicant’s number of employees and average payroll expenses
as well as the criminal history of the owners of the entity. Further, the applicant must certify that
the information is correct subject to criminal and civil penalties and that they will use the proceeds
“to retain workers and maintain payroll, make mortgage interest payments, lease payments, and
utility payments.”

BRYANT was a managing member of NOW LLC, which was organized in the $tate of
Maryland on September 5, 2013, with BRYANT as the sole managing member. On October 17,
2014, Individual 1 was added as a second managing member. NOW LLC stated their i
purpose was to “provide mentoring, education and training to underserved populations.
provide vocational rehabilitation and mental health support services to: children, youth and

Rev. August 2018
12
Case 8:22-cr-00308-DLB Document 34-1 Filed 10/27/22 Page 2 of 3

Contrary to their stated business purpose, NOW LLC has been awarded contracts for
“Janitorial services” for Amtrak at New Carrollton, Maryland and Baltimore Washington
International Airport (BWI) Amtrak station. They have applied for multiple SBA loans through
vatious programs and cited their line of business as “construction and contractors.” Numerous
checks from NOW LLC’s operating account indicate they may be outsourcing janitorial/ work to
subcontractors.

On March 30, 2020, BRYANT submitted an EIDL loan application for $89,500 using the
SBA web portal. In the EIDL loan application, BRYANT stated that NOW LLC earned
approximately $475,610 in gross revenues during the twelve months prior to January 31, 2020.
BRYANT further stated that NOW LLC incurred cost of goods sold of $276,614 during t
period. This information was false. For example, the income reported on BRYANT’s Fo
for 2019 from “No Opportunity Wasted’—using the same EIN listed for NOW LLC—was
$69,524.00. NOW LLC did not file a partnership tax return for the 2019 tax year. If NOW LLC
earned the income detailed in BRYANT’s EIDL loan application, that would have resulted in a
filing requirement for NOW LLC. Additionally, on line number 61c, where the application asks
“For any criminal offense...have you ever been convicted, plead guilty, plead nolo contendere, .
been placed on pretrial diversion, or been placed on any form of parole or probation,” BRYANT
falsely answered “No.”

At the time BRYANT answered that question, however, BRYANT was on! federal
probation after having plead guilty on December 3, 2018, in the U.S. District Court for the| District
of Maryland to 18 U.S.C. § 1516 (Obstruction of a Federal Audit), a federal felony. See United
States v. Sherrie Lynne Bryant, Crim. No. PWG-17-518. BRYANT submitted the loan application
while she was located in Upper Marlboro, Maryland. SBA EIDL loan applications are received in
a cloud-based platform through a server located in Des Moines, Iowa.

an advance of up to $10,000.” BRYANT received the $10,000 advance, which was deposited on
April 15, 2020, into the Capital One bank account ending in 8072 owned by NOW LLC.
Subsequently, the loan was approved on or about May 9, 2020, and BRYANT signed the
promissory note on the same day as “Owner/Officer? of NOW LLC. The sum of $89,400 was
deposited on or about May 12, 2020, into the same Capital One bank account.

On the loan application, BRYANT selected a checkbox requesting “to be deo for

On April 28, 2020, BRYANT submitted an application for PPP loan proceeds totaling
$21,200 to Virginia National Bank. At that time, BRYANT had been convicted of the previously
discussed federal felony and was on probation. Notwithstanding this, BRYANT answered “No”
to the question on her application regarding her criminal history. Specifically, the question stated,
“Is the Applicant (if an individual) or any individual owning 20% or more of the equity of the
Applicant subject to an indictment, criminal information, arraignment, or other means by which
formal criminal charges are brought in any jurisdiction, or presently incarcerated, or on probation
or parole?” and to which BRYANT falsely responded “No.” BRYANT was also asked, within
the last 5 years, for any felony, has the Applicant . . . (1) been convicted; (2) pleaded guilty; (3)
pleaded nolo contendere; (4) been placed on pretrial diversion; or (5) been placed on any form of
parole or probation (including probation before judgment)?” and BRYANT again | falsely

Rev. August 2018
13
Case 8:22-cr-00308-DLB Document 34-1 Filed 10/27/22 Page 3 of 3

responded “No.” BRYANT submitted the application as “CEO” of NOW LLC. BRYANT
submitted the application while she was located in Baltimore, Maryland. The loan proceeds of

$21,200 were transferred to NOW LLC’s bank account ending in 2613 at Capital One on May 6,
2020.

On April 22, 2021, BRYANT submitted a request for a modification of the EIDL loan.
Specifically, BRYANT requested and received approval to increase the loan amount from $89,500
to $388,000. In seeking this loan modification, BRYANT relied on her prior certifications from
March 30, 2020, in her EIDL loan application, including BRYANT’s false assertations that she
had never been convicted, plead guilty, plead nolo contendere, been placed on pretrial diversion,
or been placed on any form of parole or probation. The loan was approved on or about June 22,
2021, and BRYANT signed the First Modification of Note on the same day as “Owner/Officer”
of NOW LLC. The sum of $298,500 was deposited on or about June 28, 2021, into the Capital
One bank account ending in 8072 owned by NOW LLC. |

In total, BRYANT obtained at least $419,100.00 in fraudulent loan proceeds as a result of
the scheme to defraud. Upon receiving the fraudulently obtained EIDL and PPP proceeds,
BRYANT misappropriated a portion of the proceeds for personal use, including paying for her car
and a boat, using the funds to pay for a vacation, and tickets to sporting events. The actual loss
caused by BRYANT’s scheme was at least $419,100.00.

BRYANT was on supervised release from her May 20, 2019, conviction in the U.S.
District Court for the District of Maryland when she committed the instant offense. Accordingly,

BRYANT is guilty of Violation Number | alleged in the Petition on Probation dated September
7, 2021.

SO STIPULATED:

dade Raghavan

Assistant United States Attorney

Sherrie Lynne Bryant
Defendant

les Burnham, Esq.

Counsel for Defendant

Rey. August 2018
14


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