By: Tracie Carter
Mr. Daniel Dadoun, a 47-year-old entrepreneur with ties to South Plainfield and holding French, Canadian, and Israeli passports, has been charged with a series of fraudulent activities related to the federal Paycheck Protection Program (PPP).
The charges include four counts of bank fraud and two counts of transacting in criminal proceeds, announced U.S. Attorney Philip R. Sellinger.
Dadoun made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court on November 13, 2023, and has been detained pending further proceedings.
The allegations against Dadoun involve a complex scheme to obtain more than $3.2 million in PPP loans for various New Jersey businesses.
From April 2020 through August 2022, Dadoun is accused of submitting fraudulent loan applications misrepresenting crucial information about these companies, such as the number of employees and payroll expenses.
Following the receipt of PPP loan proceeds, Dadoun then allegedly submitted falsified PPP loan forgiveness applications in an attempt to retain the funds.
In support of these applications, he submitted falsified tax documents, altered bank statements, a forged lease agreement, and a fabricated letter purportedly signed by a New Jersey accountant.
U.S. Attorney Sellinger emphasized the seriousness of these allegations, stating, "The allegations in this complaint describe the falsifying of documents in order to secure loans and then submitting fraudulent documents to have those loans forgiven.
These programs were designed to help Americans struggling through the pandemic. Our office will combat this type of fraud whenever we encounter it."
Homeland Security Investigations (HSI) Newark Acting Special Agent in Charge Michael Alfonso echoed this sentiment, stating, "Daniel Dadoun is alleged to have engaged in COVID-19 Paycheck Protection Program (PPP) fraud for personal gain without any regard for the United States taxpayer and undermined the public trust in government programs.
HSI takes allegations of fraud seriously and will continue to pursue these crimes vigorously."
The Special Agent in Charge of IRS-CI New York, Thomas M. Fattorusso, added, "It is not only alleged that Dadoun defrauded the Paycheck Protection Program by submitting false loan applications, but he anted up the game by submitting fraudulent loan forgiveness applications. Dadoun may have known how to work the benefit system for his own financial gain, but now it's law enforcement and the judicial system that will work to hold him accountable for his crimes."
Each charge of bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.
The charges of transacting in criminal proceeds each carry a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim or twice the amount of criminally derived property involved in the transaction, whichever is greater.