NJ man sentenced to 12 years for leading ID fraud scheme

PHILADELPHIA – A New Jersey man was sentenced May 15 to 12 years in federal prison for running an identity fraud scheme in Pennsylvania that was found through an investigation by U.S. Immigration and Custom’s (ICE) Homeland Security Investigations (HSI) and other federal and local law enforcement partners.

Damian Gasdaska, 38, of Phillipsburg, New Jersey, was running an ID fraud scheme that involved stealing personal information, including from old court records. Gasdaska pleaded guilty in November 2014 to conspiracy, aggravated identity theft, wire fraud and bank fraud.  He was also ordered restitution in the amount of $257,029, $381,070 in forfeiture, five years of supervised release, and a $400 special assessment.

Gasdaska and his co-conspirators, Randall McMahon, of Easton, Pennsylvania, John Cordero, of Breinigsville, Pennsylvania, Brandon Jones, of Reading, Pennsylvania, and Johnnie Rhines, of Lindenwold, New Jersey, used the stolen information to create false identities they used to apply for credit cards and for purchasing or renting vehicles.

Gasdaska provided some of the fraudulent credit cards he acquired to his co-conspirators and kept some for himself. He also showed his co-conspirators how to commit the fraud. Gasdaska took steps to create favorable credit profiles for these false identities, and to improve the individuals’ credit profiles, which included: obtaining reports on the individuals; requesting the modification of information in the reports; and engaging in transactions in the names of the false identities to improve their credit profiles.

Gasdaska and his associates applied for loans in the name of the false identities, and the defendants secured fraudulent loans exceeding $200,000 to buy cars. They purchased or attempted to purchase five different vehicles.  

Gasdaska used Post Offices boxes in the name of the false identities to receive mail for various purposes, such as in connection with credit card applications. He also used computers at public libraries in the conspiracy. After co-conspirators made their purchases, they often provided the purchased items to Gasdaska who then sold them and paid the co-conspirators for their illegal services. When Gasdaska was arrested in January 2013, he was driving a car he had purchased through his fraud scheme that was filled with fraudulent documentation Gasdaska had generated and received during his scheme.

Co-conspirator Brandon Jones pleaded guilty May 15, and a sentencing hearing is scheduled for June 9, 2015, for co-conspirators McMahon and Cordero.

The case was investigated by U.S. Secret Service, the U.S. Postal Inspection Service, HSI and the Lehigh County Auto Theft and Insurance Fraud Task Force.  It is being prosecuted by Assistant U.S. Attorney Patrick J. Murray.