NJ Business Owner Jailed for $3.2M PPP Loan Fraud

TRENTON, N.J. — In a stunning reversal of fortune, Daniel Dadoun, the owner of several New Jersey businesses, has been sentenced to 41 months in federal prison for his brazen scheme to defraud the Paycheck Protection Program (PPP) out of over $3.2 million. The 49-year-old, once a figurehead in the local business community, pleaded guilty before U.S. District Judge Robert Kirsch on April 8, 2025, to charges of bank fraud and money laundering.

According to court documents, Dadoun’s fraudulent activities spanned from April 2020 through August 2022. He secured the substantial PPP loan proceeds by submitting falsified applications that claimed his businesses were in dire need of financial assistance during the COVID-19 pandemic. His deceitful tactics didn’t stop there; he then attempted to retain the ill-gotten gains with fraudulent loan forgiveness applications, which falsely portrayed payroll expenses and employment figures.

“Dadoun’s fraudulent scheme not only preyed on the federal government’s economic lifelines meant for struggling businesses but also robbed honest taxpayers of their hard-earned money,” Acting U.S. Attorney Alina Habba commented following the sentencing. “His punishment reflects the seriousness with which we view such crimes.”

In addition to his prison term, Dadoun was sentenced to three years’ supervised release and ordered to pay $3,239,773 in restitution. The investigation that led to his conviction involved a collaborative effort among various federal agencies, including Homeland Security Investigations Newark, IRS-CI New York Field Office, the Social Security Administration – OIG Boston New York Field Division, and the U.S. Attorney’s Office for the District of New Jersey.

Assistant U.S. Attorney Katherine M. Romano represented the government in this case, which was part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force—an initiative established by the Department of Justice to combat large-scale pandemic relief fraud.

For those with information on potential PPP fraud, the Department of Justice encourages reporting via its National Center for Disaster Fraud Hotline at 866-720-5721 or through the NCDF Web Complaint Form: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Defending Dadoun was attorney Anthony J. Pope, Jr.

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