Statement of Facts, United States v. Joseph Harding (N.D. Fla., March 21, 2023)

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A statement of facts supporting Joseph Harding's guilty plea in United States v. Harding, Case No. 1:22cr32-AW/MAL, in the U.S. District Court for the Northern District of Florida, filed March 21, 2023 as Document 29. The parties agree that on or about December 18, 2020 Harding applied for an EIDL for The Vak Shack Inc., a dormant entity, stating gross revenues of $420,874.00 and four employees, and that the business received an EIDL of $150,000.00. It lists transactions totaling $56,437.42 from the loan account in January and February of 2021, including a $30,000 transfer and a $15,235.93 transfer. It states that Harding admitted the false information in a recorded interview on or about February 25, 2021 and repaid $50,000.00 and then $99,000.00, and it sets out the elements of wire fraud, money laundering and false statements.

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Case 1:22-cr-00032-AW-MAL Document 29 _ Filed 03/21/23. Page1of4

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF FLORIDA
GAINESVILLE DIVISION
UNITED STATES OF AMERICA
Vv. CASE NO. 1:22cr32-AW/MAL

JOSEPH HARDING
/

STATEMENT OF FACTS

The parties agree with the truthfulness of the following factual basis for the
Defendant’s guilty plea. The undersigned parties further 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
facts, which if believed by the jury, would result in a conviction:

On or about December 18, 2020, while in the Northern District of Florida,
Joseph Harding (“HARDING”), applied for an Economic Injury Disaster Loan
(“EIDL”) in the name of THE VAK SHACK INC (“VAK SHACK”). HARDING
made materially false statements when he submitted this application. For example,
the VAK SHACK did not have any business activity during 2019 or 2020, and
HARDING knew that this business entity had been dormant during that time.
However, in his EIDL application, HARDING falsely stated that the VAK SHACK
had gross revenues of $420,874.00 for the twelve months prior to the date of the
disaster (January 31, 2020) and that it had four employees as of January 31, 2020.

Fildd in Open Court

Clerk, U.S Distri
US. ct Court
Northern District of Florida
Case 1:22-cr-00032-AW-MAL Document 29 Filed 03/21/23 Page2of4

Based on the false information provided by HARDING, which was relied upon by
the SBA in determining EIDL eligibility and the loan amount, the VAK SHACK
received an EIDL in the amount of $150,000.00.

Harding’s EIDL application, which was submitted from Florida, was received
by and processed using computer servers located outside of Florida, and the EIDL
disbursement payment was initiated by the SBA using computer servers located
outside of Florida, which transmitted the payment information to the United States
Treasury using computer servers located outside of Florida.

During January and February of 2021, after receiving the EIDL proceeds from
the SBA for the VAK SHACK, HARDING conducted a monetary transaction
(which involved more than $10,000 in fraudulently obtained EIDL funds from the
SBA) totaling $56,437.42, as follows:

e On January 5, 2021, HARDING transferred $30,000 from VAK SHACK

Chase Bank Account ending in 1365 to his joint Chase Bank account 3103;

e On January 20, 2021, HARDING paid $11,201.49 from VAK SHACK

Chase Bank Account ending in 1365 to a Chase credit card ending in 5444;
and

e On February 3, 2021, HARDING transferred $15,235.93 from VAK

SHACK Chase Bank Account ending in 1365 into the SHILOH OIL

COMPANY, LLC Chase Bank account ending in 8513.

2
Case 1:22-cr-00032-AW-MAL Document 29 Filed 03/21/23 Page3of4

On or about February 25, 2021, HARDING gave a non-custodial, recorded
interview with federal investigators in which he admitted that the VAK SHACK
EIDL application contained false information in order to obtain the loan. Shortly
after his interview with investigators, HARDING repaid $50,000.00 of the VAK
SHACK EIDL. Then, on or about April 9, 2021, HARDING made an additional
payment of $99,000.00 to complete the repayment of the VAK SHACK EIDL.

ELEMENTS OF THE OFFENSE

i. Wire Fraud - 18 U.S.C. § 1343 (Count 1)

Elements to be proven beyond a reasonable doubt:

(1) the Defendant knowingly devised or participated in a scheme to defraud, or
to obtain money or property by using false pretenses, representations, or
promises;

(2) the false pretenses, representations, or promises were about a material fact;

(3)the Defendant acted with the intent to defraud; and

(4) the Defendant transmitted or caused to be transmitted by wire some
communication in interstate commerce to help carry out the scheme to
defraud.

11th Circuit Pattern Jury Instructions § O51.

ii, Money Laundering - 18 U.S.C. § 1957 (Count 3)
Elements to be proven beyond a reasonable doubt:

(1)the Defendant knowingly engaged or attempted to engage in a monetary
transaction;

(2)the Defendant knew the transaction involved property or funds that were the
proceeds of some criminal activity;

(3) the property had a value of more than $10,000;
3
Case 1:22-cr-00032-AW-MAL Document 29 _ Filed 03/21/23 Page4of4

(4) the property was in fact proceeds of Wire Fraud; and

(5)the transaction took place in the United States.
1 1th Circuit Pattern Jury Instructions § 074.6.

iii. False Statements - 18 U.S.C. § 1001 (Count 5)

Elements to be proven beyond a reasonable doubt:

(1)The Defendant made the statement or made or used the document, as
charged;

(2)The statement or document was false;
(3) The falsity concerned a material matter;

(4) The Defendant acted willfully, knowing that the statement or document was
false; and

(5)The false statement or false document was made or used for a matter within
the jurisdiction of a department or agency of the United States.

11th Circuit Pattern Jury Instructions § 036.

JASON R. COODY

G ae United States Attorney
J (7 EL RAR POLS #77

Peggy-Anne O’Connor Oc: Justin M. Keen
Attorney for Defendant Florida Bar No. 021034
Assistant United States Attorney
Me Zi, 2023 Northern District of Florida
Date 111 North Adams Street, 4" Floor

Tallahassee, FL 32301

ee 850-942-8430

Joseph Harding Justin. kKeen@usdoj.gov
Defendant

21 [23 2/21/2022
Date Date


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