Daniel Dadoun, PPP Loan Fraud, New Jersey 2025

A New Jersey businessman has been sentenced to 41 months in prison for fraudulently obtaining over $3.2 million in Paycheck Protection Program (PPP) loans, according to a press release from the U.S. Attorney’s Office for the District of New Jersey.

Daniel Dadoun, 49, of Israel, formerly of South Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on April 8, 2025, to an Information charging him with bank fraud and money laundering.

According to documents filed in this case and statements made in court, Dadoun engaged in a scheme to illegally obtain over $3.2 million in PPP loans for his New Jersey businesses by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications that misrepresented payroll expenses and the number of employees working at his companies.

In support of the loan and loan forgiveness applications, Dadoun submitted falsified tax documents and altered bank statements.

In addition to the prison term, Judge Kirsch sentenced Dadoun to three years’ supervised release and ordered restitution of $3,239,773.

The investigation into Dadoun’s crimes was led by special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, special agents of IRS – Criminal Investigation, New York Field Office, under direction of Special Agent in Charge Harry T. Chavis, Jr., special agents of the Social Security Administration – Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney.

Dadoun’s defense counsel was Anthony J. Pope, Jr., Esq.

Those with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.