A New Jersey business owner who lied on loan applications to obtain more than $3.2 million in federal funds during COVID has been sentenced to three years and five months in prison.
Daniel Dadoun, 49, of Israel, also received three years of supervised release and ordered to pay $3,239,773 in restitution, the U.S. Attorney’s Office for New Jersey said.
After receiving the funds illegally between April 2020 and August 2022, the former South Plainfield resident tried to keep the money by submitting false and fraudulent Paycheck Protection Program loan forgiveness applications in which he misrepresented payroll expenses and the number of employees working at his companies, prosecutors said.
He also provided fake tax documents and altered bank statements.
Dadoun received four separate loans, the largest of which was for $2,125,000 on April 23, 2020, according to a criminal complaint.
Among the business he claimed to own were DG Distiservices, LLC; Seldat Distribution, Inc.; Seldat Staffing, Inc.; Seldat Fashion LLC; and 200 S. Pemberton Urban Renewal LLC, according to court documents.
Some had no employees, others only a handful.
One purported to provide staffing services; another offered services related to warehousing and third-party logistics; and a third was associated with construction of a warehouse in Pemberton, charging documents said.
Dadoun pleaded guilty in April to bank fraud and money laundering. He is in custody.
N.J. business owner who stole $3.2M during COVID headed to federal prison
