Statement of Facts — USA v. CATALA et al (Dkt. 72, N.D. Fla.)

Summary

A statement of facts supporting Joe Nicholas Catala's guilty plea in United States v. Catala, Case No. 4:21cr36-AW-MAF-1, in the U.S. District Court for the Northern District of Florida, filed November 19, 2021 as Document 72. It states that a TD Bank account was opened online on May 1, 2020 in the name of a former resident of the apartment Catala frequented, that the resident's $1,200 Economic Impact Payment check was deposited with a false endorsement, and that two Zelle transfers went to co-defendant Clonet Charmant on May 4, 2020. It describes Catala obtaining personal identifying information from the Dark Web, sharing debit card data with Charmant over Telegram, buying theme park tickets with other people's cards, and opening a Chase account in a former roommate's name on April 6, 2020. It closes with the elements of the charged offenses.

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Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page1of13

IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF FLORIDA
TALLAHASSEE DIVISION

UNITED STATES OF AMERICA

Vv. CASE NO. 4:21cr36-AW-MAF-1

JOE NICHOLAS CATALA
/

STATEMENT OF FACTS

The parties agree with the truthfulness of the following factual basis for the
seaeunts guilty plea. The undersigned parties erect agree that not all of the facts
known from this investigation are contained in this brief summary. Defendant
admits that, if this case were to proceed to trial, the Government could prove the
following facts beyond a reasonable doubt:

On March 27, 2020, Congress passed the $2.2 trillion Coronavirus Aid,
Relief, and Economic Security (“CARES”) Act, which in part provided economic
relief for taxpayers nationwide in response to the COVID-19 pandemic. The aid
package included an Economic Impact Payment [(“EIP”), also known as a
“Coronavirus Stimulus check” or “Coronavirus Stimulus payment”] of $1,200 to
individuals, so long as their last annual adjusted gross income was less than

$75,000. Payments were distributed by the United States Treasury via direct

( \w- FILED IN OPEN ns THIS

COURT, NORTH. DIST. FLA.
Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page 2 of13

deposit, or by mail using the latest address on file with the Internal Revenue
Service (“IRS”).

On May 2, 2020, Tallahassee Police Department (““TPD”) received a report
from A.H., who advised TPD that her $1,200 EIP had been mailed to an old
residential address that she used for her W-2 (2700 West Pensacola Street,
Apartment 1223, Tallahassee, FL 32304). Records from the United States
Treasury indicated that A.H.’s EJP treasury check was placed in mail with the
United States Postal Service on or about May 24, 2020. A.H. also advised that she.
received a call from TD Bank (in South Carolina) informing her that an account
using her name, social security number, and her old West Pensacola Street address
had been created online. A.H. stated she only banked with Bank of America and
had no knowledge of the TD Bank account that as epeated, Further, AH. aves,
that she was told by TD Bank that her EIP check had been deposited into the TD -
Bank account and that phone number (850) 462-2335 was used when the account |
was a in her name. The endorsement on the rear on A.H.’s EIP treasury

check purported to be that of A.H.; however, A.H. told investigators that the

signature was false and not hers.
TD Bank records show that the account opened in the name of A.H. (who
Defendant Catala knew to be a real person), using A.H.’s Social Security number

and date of birth, was opened electronically on May 1, 2020, and A.H.’s Treasury

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check was deposited into that account via mobile deposit on the same day. TD
Bank records further show that the phone numbers (850) 462-2335 and (786) 709-
3353 (which was later discovered to be Defendant Joe Catala’s T-Mobile phone
number) were registered to the account; those phone numbers were later linked to
Defendant Catala. The TD Bank records also show that two Zelle transfers were
made to (Co-Defendant) “Clonet Charmant” on May 4, 2020, from that account.
Law enforcement agents later interviewed Co-Defendant Charmant and he
confirmed that the two Zelle transfers were sent to him by Defendant Catala.
During the course of the investigation, agents learned that phone number
(850) 462-2335 was one of the phone numbers belonging to TextNow, Inc. for use
by its customers. TextNow, Inc. records revealed that on November 21, 2019, at
approximately 8:05 AM UTC, user account “drewhunchie” was created utilizing
email address drewhunchie@gmail.com, and that on April 22, 2020, at —
approximately 3:00 AM UTC, “drewhunchie” took ownership of phone number
(850) 462-2335. TextNow, Inc. also provided IP logs for recent activity associated
with the username “drewhunchie” for April 2020 and May 2020 that reflected the
same two IP addresses being used — 184.102.14.253 and 71.209.94.161.
TextNow, Inc. also provided call and message logs for phone number (850)

462-2335 which revealed at least one call to Kiku Japanese Fusion in Tallahassee,
FL. TextNow, Inc. also provided call logs that reflected phone number (850) 462-
2335 also made calls to TD Bank.

On May 13, 2020, agents went to Kiku Japanese Fusion in Tallahassee. An
employee there provided a copy of an order invoice dated April 30, 2020, fora
customer whose initials were “A.C.” with a phone number of (850) 462-2335. The
order was paid for using a debit/credit card ending in 1419 (belonging to
Defendant Catala) with a billing ZIP code of 34953 (associated with the Port St.
Lucie, FL area).

CenturyLink records indicated that IP addresses 184.102.14.253 and
71.209.94.161 were assigned to a subscriber whose billing name is “Villa Del
Lago” with a service address of 2700 West Pensacola Street, Unit 1223,
Tallahassee, FL (which is now known as “The Social 2700 Student Spaces”
apartment complex) since July, 26, 2010. The Social 2700 used to be known as
“Villa Del Lago.”

Co-Defendant Ramirez, Co-Defendant Charnaat, and Defendant Catala
were all friends and graduates of (St. Lucie West) Centennial High School in Port
St. Lucie, FL, and Defendant Catala was a frequent guest of Co-Defendant
Ramirez’ at 2700 West Pensacola Street, Apartment 1223, Tallahassee, FL 32304.
Each resident of Apartment 1223 had a mailbox key for the locked mailbox

assigned to that apartment unit, but Ramirez and a former roommate, A.I., lost

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Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page5of13

theirs. Before another roommate moved out of Apartment 1223 in March 2020, he
gave his mailbox key to Defendant Catala. Co-Defendant Ramirez and Defendant
Catala were involved in a credit card scam since August 2019, and Defendant
Catala, using his laptop, searched the “Dark Web” to obtain unknown persons’
personally identifiable information (“PII”) at the apartment in Tallahassee as part
of the credit card scam.

Further investigation revealed a scheme to defraud multiple U.S. bank
customers using Zelle, fraudulent account applications, and through fraudulent use ~
of debit card numbers to make purchases. These customers banked with Austin
Telco Credit Union, Bank of America, Bank of Hawaii, BB&T, Discover Bank,
Frist Republic Bank, GBC International Bank, Innovations Federal Credit Union... -
(headquartered in Panama City, FL), JPMorgan Chase, TD Bank, and UMB Bank. -.
— all were federally insured at al! times relevant to this investigation. The
defendants used Zelle to transfer funds from victim accounts (with financial
institutions located nationwide) into the — of the defendants.

Additionally, search warrants were issued to Google for email accounts of
Defendant Catala, including drewhunchie@gmail.com. A search of those accounts
revealed communications that established that Defendant Catala had
custody/control of the email accounts. Further, confirmation emails for fraudulent

purchases were found in the email account of drewhunchie@gmail.com. Two such
emails were confirmations of theme park ticket purchases in the names and
addresses of, and using the debit cards of, victims R.H. and L.P. Records obtained
from Busch Gardens reflected that park tickets and wristbands were activated at
the park, and one of the wristbands were linked to a food purchase at the park
using the debit card of Defendant Catala’s mother. Defendant Catala’s mother and
step-father would testified that Defendant Catala bought the tickets to Busch
Gardens for the family to reimburse his parents for money that he owed them.
Defendant Catala’s mother and step-father would also testify that while in the park,

Defendant Catala’s mother purchased food using her credit card and that they did

not know who R.H. or L.P. were.

Further, on May 18, 2020, a search warrant was obtained from Southern
District of Florida Magistrate Judge Shaniek M. Maynard (case number 20-040-
SMM) authorizing a search of Co-Defendant Charmant’s parent’s residence in Port
St. Lucie, FL, for items of evidence, including documents and electronic devices.
During that search, Co-Defendart Charmant’s blue iPhone was located and seized,
and a digital forensic examination was performed on it. In particular, a
conversation between Co-Defendant Charmant and Defendant Catala using the
Telegram messaging application was discovered. The conversations between Co-
Defendant Charmant and Defendant Catala included the sharing of personal

identification information (names, dates of birth, addresses) and photos of

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identification documents, and credit/debit card numbers (including expiration
dates, CVVs/security codes, and billing ZIP codes), and photographs of such
access devices. Further, the coordination of fraud activity in Florida and
nationwide, and the sharing of fraud proceeds were discussed by Co-Defendant
Charmant and Defendant Catala using the Telegram app.

Specifically, on April 15, 2020, around 1:31 AM, Defendant Catala sent a
Telegram message to Co-Defendant Charmant that asks “Your head ready for the
zelle/chimenplay” to which Co-Defendant Charmant replied “Duhh.” Defendant
Catala then sent a message that read “Sending info now” followed by the name,
address, First Republic Bank debit card number, expiration date, and CV V/security
code of E.G., who was a resident of Connecticut (and who Defendant Catala knew
to be areal person). In response, Co-Defendant Charmant sent a message back
that read “Send other info for the piece.” During the execution of the search
warrant at 2700 West Pensacola Street, Unit 1223, Tallahassee, FL (issued by
Magistrate Judge Martin F stepatutale on May 15, 2020 in case #4:20mj125-MAF), :
agents located a takeout bag from O.G. Subs to which a sales receipt was attached.
The receipt was dated April 18, 2020, and reflected the customer name, “E.G.,”
and phone number (727) 317-1564. This phone number was determined to belong
to TextNow, Inc. and records revealed that this particular phone number was

assigned to the “drewhunchie” account on or between April 6, 2020, and April 22,
Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page 8of13

2020. Records from First Republic Bank for E.G.’s account show the fraudulent
charge at O.G. Subs and E.G.’s subsequent dispute thereof.

Also, on April 15, 2020, at 6:16 PM, Co-Defendant Charmant sent a
Telegram message to Defendant Catala that read “I need the other piece so I can
work rn [right now] to which Defendant Catala replied “Waiting on Site.” About
thirty minutes later, Defendant Catala sent a message to Co-Defendant Charmant
that contained the name, address, First Republic Bank debit card number,
expiration date, and CVV/security code of P.F., who was a resident of New York .
(and who Defendant Catala knew to be a real person). In response, Co-Defendant :
Charmant replied “appreciate that kid” and a screenshot of a web form for Zelle in
which the address of P.F. was typed into the fields. Records from First Republic .. -
Bank for P.F.’s account show several fraudulent charges totaling $645.02 which
P.F. disputed.

Further, in the early morning hours on April 21, 2020, Defendant Catala sent
a Taleeeati message to Co-Defendant Charmant that contained the — address,
Pacific Premier Bank debit card number, expiration date, and CV V/security code: -:
of D.C., who was a resident of California (and who Defendant Catala knew to be a
real person). Defendant Catala then said “break me off [o]f it” to which Co-
Defendant Charmant replied “I gotchu.” Defendant Catala also directed Co-

Defendant Charmant to “[o]nly send [$]250.” Later that day, Defendant Catala
sent a photo of a food delivery order confirmation from O.G. Subs addressed to.
[D.C.’s first name] to Co-Defendant Charmant. Records from Pacific Premier
Bank for D.C.’s account reflect the fraudulent charge at O.G. Subs and D.C.’s
subsequent dispute thereof.

Further, on April 27, 2020, around 4:16 PM, Defendant Catala sent a
Telegram message to Co-Defendant Charmant that read “I ready You Ready?” to
which Co-Defendant Charmant replied “Hell yeah Yessssssirrr.” In response,

Defendant Catala sent a message to Co-Defendant Charmant that contained the
name, address, email address, First Republic Bank debit card number, expiration
date, and CVV/security code of A.C., who was a resident of Arizona (and who
Defendant Catala knew to be a real person). In response, Co-Defendant Charmant
replied “Appreciate that fam Ima get right rn [right now].” Co-Defendant
Charmant also asked Defendant Catala to “Send me that number so I can send
bread [money] [to Defendant Catala via Zelle] too.” As noted above, A.C.’s name
was used on the food order at Kiku oe in Tallahassee, Florida on April 30,
2020. Records from First Republic Bank for A.C.’s account show several
fraudulent charges on the account and A.C.’s subsequent dispute thereof.

Records obtained from Zelle (Early Warning Services) reflect that
Defendant Catala and Co-Defendant Ramirez fraudulently received funds from a

customer account at Innovations Federal Credit Union (headquartered in Panama
Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page 10 of 13

City, Florida) into their bank accounts using Zelle. Specifically, Defendant Catala
fraudulently received two transfers of $150 each into his BB&T account from the
account belonging to S.P., and Co-Defendant Ramirez fraudulently received a
transfer of $200 into his Chase account from the account belonging to S.P.

Further, a checking account at J.P. Morgan Chase was fraudulently opened
on April 6, 2020, in the name of A.I. (Defendant Catala’s former roommate in
Apartment 1223, and who Defendant Catala knew to be a real person) and using
A.I.’s date of birth, Social Security number, and Drivers License number. During
a Telegram conversation on April 12, 2020, Defendant Catala told Co-Defendant
Charmant that he opened the Chase account with A.I.’s social security number, and
that A.I. did not know. Co-Defendant Charmant transferred $50 into the Chase
account in the name of A.I. using Zelle on or about April 12, 2020.

ELEMENTS OF THE OFFENSE
Conspiracy to Commit Bank Fraud and Wire Fraud — 18 U.S.C. § 1349
Bierienes to be proven besa a reasonable doubt:

1) two or more persons, in some way or manner, agreed to try to accomplish
a common and unlawful plan to commit bank fraud and wire fraud, as

charged in the indictment; and

2) the Defendant knew the unlawful purpose of the plan and willfully joined

in it;

Adapted from 11th Circuit Pattern Jury Instructions § O54.

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Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page 11 of 13

ii, Bank Fraud - 18 U.S.C. § 1344
Elements to be proven beyond a reasonable doubt:

1) the Defendant knowingly carried out or attempted to carry out a scheme
to defraud a financial institution or to get money, assets, or other property
from a financial institution by using false or fraudulent pretenses,
representations, or promises about a material fact;

2) the false or fraudulent pretenses, representations, or promises were

material;

3) the Defendant intended to defraud the financial institution or someone;

and
4) the financial institution was federally insured.
11th Circuit Pattern Jury Instructions § O52.
iii, Theft of Mail - 18 U.S.C. § 1768
Elements to be proven beyond a reasonable doubt: T=

1) the letter or mail matter described in the indictment was in the United
States mai!, a letter box, or a mail receptacle; and = 8 &

2) the Defendant knowingly stole the mail.

11th Circuit Pattern Jury Instructions § 66.1.

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Case 4:21-cr-00036-AW-MAF Document 72 Filed 11/19/21 Page 12 of 13

iv. Fraudulent Endorsement of Treasury Check — 18 U.S.C. § 510 - -
Elements to be proven beyond a reasonable doubt:

1) the Defendant forged the payee's endorsement on a United States

Treasury check having a face value of more than $1,000; and

2) the Defendant forged the endorsement with the intent to defraud by

getting (or enabling someone else to get) money directly or indirectly

from the United States.
11th Circuit Pattern Jury Instructions § 18.1.
v. Aggravated Identity Theft —18 U.S.C. § 1028A
Elements to be proven beyond a reasonable doubt:

(1) The Defendant knowingly transferred, possessed, or used another person’s
means of identification; C8

(2) The Defendant did so without iawful authority’, ne gage gant

(3)The Defendant knew the means of identification belonged.to an actual
person’, and

(4) The Defendant dia so in relation to bank fraud.

11th Circuit Pattern Jury Instructions § 040.3.

' In United States v. Zitron, 810 F.3d 1253, 1260 (1 1th Cir. 2016) (per curiam), the
Eleventh Circuit found that the defendant used the victim’s identity “without lawful authority” i
two ways: (1) the defendant did not have permission to use the victim’s identity, and (2) the
defendant used the victim’s means of identification for an unlawful purpose. See also United
States v. Joseph, 567 F. App’x 844, 848 (11th Cir. 2014) (per curiam) (unpublished).

? Does not appear in the 1 1th Circuit Pattern Jury Instructions.
Case 4:21-cr-00036-AW-MAF

Jeff,

. Gorman

orney for Defendant

Date

| Nicholas Catala

Defendant

Date

Document 72

Acting/United States A Re?

Justin M. Keen | “~

Florida Bar No. 021034

Assistant United States Attorney
Northern District of Florida

111 North Adams Street, 4" Floor
Tallahassee, FL 32301
850-942-8430

Justin. Keen@usdoj.gov

Date"

13


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