NEW YORK (1010 WINS/WCBS 880) – A New Jersey businessman has been charged in connection with a $3.2 million Paycheck Protection Program (PPP) fraud scheme, according to prosecutors on Wednesday.
Daniel Dadoun, 47, is being charged for his actions in 2020 when he allegedly lied on applications for PPP funding and then submitted financial statements to qualify for loan forgiveness.
In these applications, Dadoun misrepresented payrolls and exaggerated the number of employees across several of his businesses, prosecutors said.
Some of his businesses include DG District Services of Perth Amboy, Seldat Distribution in South Plainfield, and a redevelopment company, 200 South Pemberton Urban Renewal, registered in Perth Amboy.
The United State of America vs. James Dadoun Criminal Complaint, Nov. 15, 2023 by David Caplan on Scribd
He allegedly "falsified tax documents, altered and falsified bank statements, an altered and falsified lease agreement, and a false letter purportedly signed by a New Jersey accountant," prosecutors stated.
He allegedly withdrew the loans from three banks, directing funds to personal and business accounts, including accounts overseas.
One of the payroll figures was inflated by almost $700,000.
The charges of bank fraud carry a maximum penalty of 30 years in prison and a fine of up to $1 million, or twice the gross gain or loss involved.
The charges of transacting in criminal proceeds could lead to a maximum of 10 years in prison and a fine of up to $250,000, or twice the amount of criminally derived property involved in the transaction.
Dadoun has been charged with four counts of bank fraud and two counts of transacting in criminal proceeds.
