An owner of multiple businesses in New Jersey, Daniel Dadoun, has admitted to fraudulently obtaining over $3.2 million from the federal Paycheck Protection Program (PPP). The guilty plea was announced by U.S. Attorney Alina Habba and was entered before U.S. District Judge Robert Kirsch. Dadoun, aged 48 and originally from Israel, engaged in fraudulent activities from April 2020 to August 2022. During this period, he submitted false loan applications to the PPP to secure funds for his companies.
Dadoun falsified tax documents and altered bank statements to support his fraudulent loan and loan forgiveness applications. He falsely claimed payroll expenses and exaggerated the number of employees at his companies to maintain control over the PPP loan money.
The legal repercussions of bank fraud could lead to a maximum of 30 years of imprisonment and a fine that can reach $1,000,000, or twice the gross gain or loss involved. The money laundering charges may result in a penalty of up to 10 years in prison and a fine of $250,000, or alternatively, twice the amount of criminally derived property or the resultant financial impact, whichever is greater. Dadoun is scheduled to be sentenced on August 13, 2025.
The investigation was attributed to several federal agencies. U.S. Attorney Habba credited the special agents of Homeland Security Investigations Newark, IRS Criminal Investigation New York Field Office, Social Security Administration Office of the Inspector General, Boston New York Field Division, and the U.S. Attorney’s Office for the District of New Jersey for their roles in leading to Dadoun’s guilty plea. These agencies worked under their respective special agents in charge: Ricky J. Patel, Harry T. Chavis, Jr., Amy Connelly, and Thomas Mahoney.
Assistant U.S. Attorney Katherine M. Romano of the U.S. Attorney’s Office Health Care Fraud Unit in Newark represents the government in this matter. The District of New Jersey COVID-19 Fraud Enforcement Strike Force, part of a nationwide initiative by the Department of Justice, played a key role by identifying and prosecuting pandemic relief fraud. The strike force is one of five in the United States dedicated to combating large-scale and multistate fraud related to COVID-19 relief funds.
The Department of Justice encourages individuals with information on COVID-19 fraud to report it through their National Center for Disaster Fraud Hotline or their online complaint form.