New Jersey business owner admits to $3.2 million COVID relief fraud scheme

A New Jersey businessman has pleaded guilty to federal charges stemming from a scheme to fraudulently obtain more than $3.2 million in pandemic relief loans, according to the U.S. Attorney’s Office.

Daniel Dadoun, 48, formerly of South Plainfield and now residing in Israel, admitted to submitting falsified applications for Paycheck Protection Program (PPP) funds between April 2020 and August 2022.

Court documents reveal that Dadoun, who owned multiple businesses in New Jersey, submitted fraudulent loan applications containing altered bank statements and falsified tax documents.

After receiving the funds, he attempted to secure loan forgiveness by submitting additional false documentation misrepresenting payroll expenses and employee counts. The scheme unraveled following an investigation led by multiple federal agencies, including Homeland Security Investigations and the IRS Criminal Investigation unit.

Dadoun pleaded guilty before U.S. District Judge Robert Kirsch to charges of bank fraud and money laundering. Bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, while money laundering carries up to 10 years of imprisonment and a $250,000 fine. His sentencing is scheduled for August 2025.

The case was prosecuted by Assistant U.S. Attorney Katherine M. Romano as part of the District of New Jersey’s COVID-19 Fraud Enforcement Strike Force, one of five such units nationwide targeting large-scale pandemic relief fraud.

Lisa McCormick, a New Jersey Democrat and former congressional candidate, criticized the broader handling of pandemic relief funds, calling the widespread fraud a “political problem” resulting from inadequate safeguards in the CARES Act.

The legislation, which passed with unanimous support from New Jersey’s congressional delegation, allocated trillions in emergency aid during the early stages of the COVID-19 pandemic.

Authorities continue to investigate pandemic-related fraud and encourage the public to report suspicious activity through the Department of Justice’s National Center for Disaster Fraud.

---

Let me know if you’d like to tailor this for a specific publication or audience.