An American-Israeli owner of several New Jersey businesses admitted to fraud by obtaining more than $3.2 million in Paycheck Protection Program loans, the U.S. Department of Justice announced on Tuesday.
Daniel Dadoun, 48, pleaded guilty to bank fraud and money laundering charges. The Justice Department stated that “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,” from April 2020 through August 2022.
After receiving the PPP loans, he attempted to keep the money by submitting false loan forgiveness applications that “misrepresented payroll expenses and the number of employees at his companies.” He also submitted fake tax documents and altered bank records.
He faces a maximum penalty of 30 years in prison and a fine of $1 million for bank fraud, as well as an additional 10 years and $250,000 for money laundering. Sentencing is scheduled for Aug. 13.
