New Jersey Business Owner Charged in Multimillion-Dollar PPP Loan Fraud
Daniel Dadoun faces serious charges for allegedly exploiting COVID-19 relief funds, and defrauding the Paycheck Protection Program of over $3.2 million.
Morristown, NJ – Daniel Dadoun, a 47-year-old former resident of South Plainfield, New Jersey, now faces multiple charges of bank fraud and illegal transactions, as announced by U.S. Attorney Philip R. Sellinger.
Dadoun, accused of fraudulently obtaining over $3.2 million in federal Paycheck Protection Program (PPP) loans, was detained following his initial court appearance on November 13, 2023.
Sellinger described the case as a clear instance of document falsification to access and then seek forgiveness for loans meant to aid Americans during the pandemic. Homeland Security Investigations Newark's Acting Special Agent in Charge, Michael Alfonso, and IRS-CI New York's Special Agent in Charge, Thomas M. Fattorusso, echoed these sentiments, emphasizing the seriousness of PPP fraud and the commitment of law enforcement to address such crimes.
The charges stem from Dadoun's alleged scheme, running from April 2020 to August 2022, to secure over $3.2 million in PPP loans for New Jersey-based businesses through fraudulent applications. These applications contained false information about employee numbers and payroll expenses, bolstered by falsified tax documents and other fraudulent materials. Subsequent attempts to have these loans forgiven involved similar deceit.
If convicted, Dadoun faces up to 30 years in prison and significant fines for each count of bank fraud, along with additional penalties for transacting in criminal proceeds. This high-profile case has drawn attention to the broader efforts of the U.S. Department of Justice's COVID-19 Fraud Enforcement Strike Forces, which aim to combat pandemic relief fraud nationwide.
As this investigation continues, led by a team of special agents from various federal agencies, the public is reminded that these charges are merely accusations. Dadoun remains presumed innocent unless proven guilty. The community is encouraged to report any COVID-19-related fraud to the Department of Justice's National Center for Disaster Fraud Hotline.