The inside story of Operation Ironside – and the Adelaide olive merchant named by the FBI as a key player in a global conspiracy

An Adelaide businessman identified by the FBI for his alleged role in the administration of a spy app that sparked the largest police sting in Australian history was raided over another encrypted network three years ago. Nigel Hunt has the inside story.

On a balmy March morning in 2018, Domenic Catanzariti answered a forceful knock on the door of a northern suburbs home.

Because of the early hour, he had probably worked out the visitors were not family or friends. Rather, it was a phalanx of Australian Federal Police detectives executing a search warrant.

Simultaneously, at numerous locations across the United States and Canada, FBI agents were raiding premises connected to Phantom Secure, the encrypted communications network which police claimed at the time was being used by some members of the underworld, including the majority of Adelaide’s bikie gang members, to conduct their business.

At the Munno Para house, detectives seized 761 BlackBerry devices loaded with Phantom Secure.

Catanzariti was never charged over his role in Phantom Secure.

But Canadian man Vincent Ramos, the operator of the encrypted network, was convicted of racketeering offences and sentenced to nine years in prison. The FBI also confiscated $80 million of his assets gained through the business.

This week Catanzariti was not so fortunate. On Monday he was charged in the US with racketeering offences over the distribution and administration of the AN0M encrypted communications system at the heart of the largest police sting in Australian history dubbed Operation Ironside.

He has been identified by the FBI as one of seven Australians – dubbed influencers – behind the introduction of AN0M to organised crime groups in Australia.

Domenic Catanzariti (main picture) and the three senior police officers in charge of Operation Ironside in South Australia. Artwork: Steve Grice

Catanzariti, 29, of Kudla, is also facing serious drug possession charges in SA. He was one of 48 people arrested on Monday as more than 80 properties across the metropolitan area were raided.

Unwittingly, Catanzariti’s historical dealings with those behind Phantom Secure proved crucial to the success of Operation Ironside, which was based entirely around the next generation of encrypted communications for organised criminals – AN0M.

The intricate web of dealings that were the very genesis of Operation Ironside have been revealed in US District Court documents that were unsealed on Monday – the day the operation became overt.

In an extensive affidavit in support of a search warrant application – to search and seize data from the Californian headquarters of Google – San Diego FBI special agent Nicholas Cheviron details precisely how Operation Ironside was initiated.

THE FBI AFFIDAVIT

Special Agent Cheviron reveals the catalyst was the 2018 operation that brought down Phantom Secure. The 33-page affidavit reveals that after Ramos was arrested, San Diego FBI agents recruited a Confidential Human Source (CHS) who had been developing the “next generation” of encrypted communications product who was set to enter the underground market against other established hardened encrypted device competitors.

Ironically, the CHS was one of Ramos’ own trusted electronics technicians.

Vincent Ramos was the mastermind behind encrypted communications platform Phantom Secure – the precursor to the FBI and AFP’s trojan horse AN0M app.

The affidavit reveals the FBI “flipped’’ the CHS and he agreed to work for the FBI. He has so far been paid more than $120,000 for his services and a further $59,508 in expenses.

The CHS is not just a techie, he is also a convicted drug trafficker. He had already served a six-year sentence prior to being recruited by the FBI and at the time was facing other charges, for which he received a reduced sentence because of his assistance.

“At the time, the void created by Phantom Secure’s dismantlement provided a new opportunity for criminal users to switch to a new, secure brand of device,’’ Special Agent Cheviron states.

“The CHS previously distributed both Phantom Secure and Sky Global4 devices to TCOs (Transnational Criminal Organisations) and had invested a substantial amount of money into the development of a new hardened encrypted device.

“The CHS offered this next generation device, named “AN0M” to the FBI to use in ongoing and new investigations. The CHS also agreed to offer to distribute AN0M devices to some of the CHS’s existing network of distributors of encrypted communications devices, all of whom have direct links to TCOs.

“Because encrypted communications devices exist to eschew law enforcement, the distribution of these devices is predicated on trust. This shadowy distribution system is designed, in part, to impede law enforcement’s ability to obtain the content from these devices. To prevent law enforcement from obtaining devices, the Phantom Secure investigation revealed that oftentimes, a distributor must vet would-be purchasers of these devices.

“This vetting process comes from either a personal relationship or reputational access with a purchaser premised on prior/current criminal dealings. By introducing AN0M to the CHS’s trusted distributors, who were likewise trusted by criminal organisations, the FBI aimed to grow the use of AN0M organically through these networks.”

The affidavit reveals the FBI opened a new covert investigation, Operation Trojan Shield, which centred on exploiting AN0M by inserting it into criminal networks and working with international partners, including the Australian Federal Police, to monitor the communications.

In a masterstroke, before the device was put to use the FBI, AFP, and the CHS carefully built a master key into the existing encryption system which surreptitiously attaches to each message and enables law enforcement to decrypt and store the message as it is transmitted. This function was hidden within a calculator on each handset.

Police say this crucial function essentially copied each message, still in an encrypted form, sent between users to servers specifically set up by the FBI, where they are decrypted from the CHS’s encryption code and then immediately re-encrypted with FBI encryption code.

The newly encrypted message was then sent to a second FBI-owned server, where it is decrypted and its content available for viewing.

THE ADELAIDE CONNECTION

The affidavit states that in October 2018, the CHS began offering these devices to three former Phantom Secure distributors in Australia. One was Domenic Catanzariti.

It states for this initial test the AFP obtained a court order to legally monitor the AN0M devices of the individuals in Australia or with a clear nexus to Australia. Approximately 50 devices were distributed as part of the test and it was a success.

“Through the interception of these communications, the AFP penetrated two of the most sophisticated criminal networks in Australia. The AFP has shared generally with San Diego FBI the nature of conversations occurring over AN0M, six which included drug trafficking activity (including discussing the transportation of hundreds of kilograms of narcotics), firearms purchases, and other illegal activity,” the affidavit states.

“Moreover, as the FBI saw with Phantom Secure, according to Australian law enforcement, 100% of AN0M users in the test phase used AN0M to engage in criminal activity. Intercepted conversations have also detailed a willingness among TCO members to provide these devices to senior members of organised crime groups who reside outside of Australia.’’

The Operative – an Australian technician who helped create the AN0M app in partnership with the AFP and the FBI.

Police say initially, the growth of devices in Australia was slow. It grew organically based on word of mouth from the CHS’s criminal distributors and other end-users.

Growth ramped up in 2019 during the successful test in Australia; the CHS saw an increase in demand for devices both inside and outside of Australia.

The CHS – in co-ordination with the FBI – began increasing the distribution of devices to other criminal associates in the CHS’s distribution network. The AFP continued to monitor these communications.

Since October 2019, the FBI has reviewed the content from the server and has translated the messages and catalogued more than 20 million messages from a total of 11,800 devices – with approximately 9000 active devices until Monday’s raids.

For the first time, actual conversations from users of AN0M have been detailed in the warrant application.

THE COCAINE CONVERSATION

According to police allegations, on January 4, 2020, the user of one device, identified as Domenic Catanzariti, and another Adelaide man, who cannot be named for legal reasons, discussed the cocaine supply of a user codenamed “Atlas”.

The conversation included photographs of vast quantities of packaged cocaine.

An image of cocaine allegedly sent by Adelaide man Domenic Catanzariti on his AN0M device to an associate. Picture: FBI

More images of packaged drugs allegedly sent by traffickers on their AN0M devices. Picture: FBI

“Catanzariti said that the batman photo “was all atlas stock” and “Thi[n]k he got it in,” it states.

“(His associate) responded, “Your dreaming. You reckon. What he offer it to you for.”

“Catanzariti then asked what (his associate) meant and whether Atlas sent the same photo in which Atlas said it was all his. (His associate) said he never got the photo.

“Catanzariti responded that (his associate) was the one who sent it to him one month ago. Catanzariti then sent the following photo to (his associate) of Atlas’s supply, which showed hundreds of kilograms of cocaine with a batman label.

“(His associate) then asked Catanzariti what price he is telling them for pieces. Catanzariti suggested “150 or 160 (150,000-160,000 AUD/kilogram). (His associate) agreed that 160 maximum was the right price.’’

Both Catanzariti and his associate were arrested by Federal Police during Operation Ironside raids on Monday and are facing drug possession charges in South Australia.

Domenic Catanzariti – who worked at an Adelaide olive company – allegedly sent messages to an associate discussing a mammoth cocaine deal.

Astonishingly, intercepted conversations of alleged offenders detailing similar planned plots and other criminal activity has resulted in 800 arrests across the globe and thousands of charges against organised criminals.

In Australia, Operation Ironside has resulted in 224 arrests – with 90 in SA alone. Crucially, 21 murder plots have been thwarted nationwide. In SA, Serious and Organised Crime Branch detectives say they prevented two murders – one an Owen machinegun attack allegedly planned for the Parade at Norwood and another an ambush allegedly planned at a home in Rosslyn Park.

Both planned murders allegedly involved members of the Comanchero bikie gang who have been charged with conspiracy to murder.

While Catanzariti is facing drug possession charges in South Australia, they may well be the least of his problems.

He faces extradition to the US on racketeering charges over his role in the distribution and administration of AN0M devices and the prospect of serious jail time if convicted.

And it is more than a fair bet many, many organised crime figures, including a swathe of Comanchero bikies brought unstuck by AN0M phones that the FBI claims they purchased from him, will be keen to have a chat when they have a chance.

Originally published as The inside story of Operation Ironside – and the Adelaide olive merchant named by the FBI as a key player in a global conspiracy