NEW JERSEY — A former New Jersey business owner has pleaded guilty to federal charges for fraudulently obtaining over $3.2 million in Paycheck Protection Program (PPP) loans meant to assist businesses during the COVID-19 pandemic, announced U.S. Attorney Alina Habba.
Daniel Dadoun, 48, a former South Plainfield resident and citizen of Israel, pleaded guilty before U.S. District Judge Robert Kirsch to charges of bank fraud and money laundering. Sentencing is scheduled for August 13, 2025.
Court documents reveal that between April 2020 and August 2022, Dadoun submitted multiple fraudulent PPP loan applications, falsely inflating the number of employees and payroll expenses for his businesses. To support these fraudulent applications, Dadoun provided falsified tax records and altered bank statements, deceiving financial institutions and the Small Business Administration (SBA).
Once he obtained the funds, Dadoun continued to submit fraudulent loan forgiveness applications, misrepresenting his businesses’ eligibility and qualifications for the relief.
The bank fraud charge carries a maximum sentence of 30 years in prison and a $1 million fine, or twice the financial gain or loss resulting from the crime. The money laundering charge is punishable by up to 10 years in prison and a $250,000 fine, or twice the value of the laundered funds.
The case was investigated by several federal agencies, including Homeland Security Investigations (HSI) Newark, the IRS Criminal Investigation – New York Field Office, the Social Security Administration’s Office of the Inspector General, and the U.S. Attorney’s Office for the District of New Jersey. It was part of a larger effort by the COVID-19 Fraud Enforcement Strike Force, a Department of Justice initiative targeting pandemic-related financial fraud.
The case is being prosecuted by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
Federal authorities continue to encourage the public to report suspected COVID-19 relief fraud to the National Center for Disaster Fraud via their hotline at 866-720-5721 or the online complaint form at justice.gov/disaster-fraud.
