Two from Middlesex County ripped off $4 million in COVID relief funding, feds allege
A man and a woman from Middlesex County were separately arrested for allegedly fraudulently obtaining more than $3.8 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Philip R. Sellinger announced.
Daniel Dadoun, 47, formerly of South Plainfield, was charged with four counts of bank fraud and two counts of transacting in criminal proceeds. And Damaris Valerio, 41, of Perth Amboy, was charged with one count of wire fraud and one count of money laundering.
From April 2020 to August 2022, Danoud is alleged to have obtained more than $3.2 million in federal PPP loans on behalf of businesses located in New Jersey by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications, it’s alleged in court papers.
Dadoun then submitted 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 to support the applications, the court papers say.
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From April 2020 to December 20201, Valerio is alleged to have obtained more than $694,212 in COVID-19 emergency relief funds meant for businesses by submitting false and fraudulent applications inflating her business' revenue, payroll expenses, and number of employees and then used the money for personal gain, according to court documents and statements.
Dadoun's charges of bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine and the charges of transacting in criminal proceeds each carry a maximum penalty of 10 years in prison and a $250,000 fine.
Valerio's charge of bank fraud carries a maximum penalty of 20 years in prison and the money laundering charge carries a maximum penalty of 10 years in prison. Both charges carry a maximum fine of $250,000.
Anyone with information about fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Email: alewis@gannett.com
Alexander Lewis is an award-winning reporter and photojournalist whose work spans many topics. This coverage is only possible with support from our readers. Sign up today for a digital subscription.
This article originally appeared on MyCentralJersey.com: NJ residents ripped off $4M in COVID relief funding, feds allege
