Daniel Dadoun, an owner of multiple businesses in New Jersey, has admitted to fraudulently acquiring over $3.2 million from the federal Paycheck Protection Program (PPP). U.S. Attorney Alina Habba made this announcement, noting that Dadoun, originally from South Plainfield, New Jersey, and now residing in Israel, pleaded guilty to charges of bank fraud and money laundering before U.S. District Judge Robert Kirsch.
Documents related to the case reveal that between April 2020 and August 2022, Dadoun engaged in a scheme to secure PPP loans unlawfully by submitting false and fraudulent loan applications for his businesses. After securing the loans, Dadoun attempted to keep the funds through fraudulent PPP loan forgiveness applications that contained misrepresentations of payroll expenses and employee numbers. Supporting documents, such as falsified tax statements and bank records, were used to legitimize the fraud.
The charge of bank fraud carries a potential sentence of up to 30 years imprisonment and a fine of up to $1,000,000, or double the gross gain or loss related to the crime. The charge of money laundering could result in up to 10 years imprisonment and a fine of $250,000, or up to twice the amount involved in the fraudulent transactions. Sentencing is set for August 13, 2025.
U.S. Attorney Habba acknowledged the contributions of multiple agencies in the investigation, including Homeland Security Investigations Newark, IRS Criminal Investigation in New York, Social Security Administration Office of the Inspector General, and the U.S. Attorney's Office for the District of New Jersey. Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark leads the government's representation.
The case is a part of the efforts by the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five such units established across the U.S. by the Department of Justice. These strike forces aim to tackle large-scale pandemic relief fraud using prosecutor-led and data-driven teams focused on identifying and prosecuting those who have unlawfully taken relief funds.
Individuals with information on COVID-19 related fraud can report their concerns to the Department of Justice's National Center for Disaster Fraud hotline or through the web complaint form provided by the DOJ.
