NEWARK, NJ, November 15, 2023 — Daniel Dadoun, 47, a former South Plainfield, New Jersey resident holding French, Canadian, and Israeli passports, has been charged with orchestrating a $3.2 million fraud scheme involving the federal Paycheck Protection Program (PPP), according to U.S. Attorney Philip R. Sellinger.
Dadoun faced his initial hearing on November 13, 2023, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was subsequently detained. He is accused of four counts of bank fraud and two counts of transacting in criminal proceeds.
U.S. Attorney Sellinger described the charges as involving the fabrication of documents to secure PPP loans and the submission of fraudulent documents for loan forgiveness. Sellinger emphasized that these programs were intended to assist Americans during the pandemic and pledged to fight such fraud.
HSI Newark Acting Special Agent in Charge Michael Alfonso and IRS-CI New York Special Agent in Charge Thomas M. Fattorusso also commented on the seriousness of Dadoun’s alleged actions, noting the exploitation of PPP for personal gain and the undermining of public trust in government programs.
According to court documents and statements, from April 2020 through August 2022, Dadoun purportedly engaged in illegal activities to obtain over $3.2 million in PPP loans for his New Jersey businesses. This involved submitting false loan applications and, subsequently, fraudulent loan forgiveness applications, misrepresenting company details such as employee numbers and payroll expenses. To support his applications, Dadoun allegedly submitted falsified tax documents, bank statements, a lease agreement, and a counterfeit letter from a New Jersey accountant.
If convicted, the bank fraud charges could result in a maximum penalty of 30 years in prison and a fine of $1 million or double the gross gain or loss involved. The charges related to transacting in criminal proceeds could lead to a maximum of 10 years in prison and a $250,000 fine or double the amount involved in the transaction.