Former South Plainfield Man Gets 41 Months In Prison For COVID PPP Loan Fraud

SOUTH PLAINFIELD, NJ — A man who used to live in South Plainfield and owned several businesses was sentenced Tuesday to more than three years in prison for a $3.2-million Paycheck Protection Program (PPP) fraud.

Daniel Dadoun, 49, who currently lives in Israel, previously pleaded guilty to bank fraud and money laundering. U.S. District Judge Robert Kirsch sentenced him Tuesday to 41 months in prison.

According to this federal criminal complaint against him, from April 2020 through August 2022, during the COVID pandemic and lockdowns, Dadoun lied about how many employees he had and his payroll expenses.

As a result, he received $3.2 million in PPP loans for his New Jersey-based businesses, said U.S. Attorneys.

The New Jersey businesses Dadoun owned were:

• DG Distiservices, LLC, a business with operations in Perth Amboy and elsewhere that provided staffing services
• Seldat Distribution, Inc., a business located in South Plainfield and elsewhere that provided warehousing and third-party logistics services
• Seldat Staffing, LLC, a business purportedly located in South Plainfield
• And Seldat Fashion LLC, purportedly located in South Plainfield

After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting fraudulent PPP loan forgiveness applications, so he could keep the money. He also submitted falsified tax documents and altered bank statements.