Plea Agreement Letter — United States v. Daniel Dadoun (Document 38)

Summary

This is a February 5, 2025 letter from the United States Attorney, District of New Jersey to Anthony J. Pope, Esq., filed 04/08/25 as Document 38 in Case 3:25-cr-00215-RK, setting out a plea agreement with Daniel Dadoun. It states that the offer expires on February 19, 2025 if not accepted in writing, and that the Office will accept a guilty plea to a two-count Information charging bank fraud (Count 1) and money laundering (Count 2). The letter describes a scheme in or around April 2020 to in or around August 2022 to fraudulently obtain loans authorized by the CARES Act, including Paycheck Protection Program loans. It provides for restitution of $3,239,773.43 and a Money Judgment not to exceed $2,125,000.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Text recognized from a scanned document; may contain errors.

Case .3:25-cr-00215-RK Document 38. = Filed 04/08/25 Page 1 of 11 PagelD: 196 .

U.S. Department of Justice

United States Attorney
District of New Jersey

970 Broad Street, 7 floor 973-645-2700
Newark, New Jersey 07102

KMR/PL AGR
2018R00986

February 5, 2025 R
ED

Anthony J. Pope, Esq.

The Pope Law Firm, P.C. APR 99 aon
60 Park Place, Suite 1101 Row i)
- Newark, NJ 07102 Us, Be As 7

Re: Plea Agreement with Daniel Dadoun
(25-CR-215)

: Dear Mr. Pope:

This letter sets forth the plea agreement between your client, Daniel Dadoun,
~ and the United States Attorney for the District of New Jersey (“this Office”). This
_ offer will expire on February 19, 2025, if it is not accepted in writing by that date. If
Dadoun does not accept this plea agreement, his sentencing exposure could increase
; beyond what i is discussed ; in this plea agreement as a result of this Office’s

Conditioned on the understandings specified below, this Office will accept a
guilty plea from Dadoun to a two-count Information, which charges Dadoun with:
bank fraud, in violation of 18 U.S.C. § 1844 (Count 1); and money laundering, in
violation of 18 U.S.C. § 1957 (Count 2). If Dadoun enters a guilty plea and is
sentenced on these charges and otherwise fully complies with this agreement, this
Office will not initiate any further criminal charges against Dadoun for, from in or
around ‘April 2020 to in or around August 2022, engaging in a scheme to
fraudulently obtain loans authorized by the Coronavirus Aid, Relief, and Economic
Security (“CARES”) Act, including federal Paycheck Protection Program (“PPP”)
loans, seeking forgiveness of those loans, and causing those loan funds to be
deposited and transferred into various bank accounts that Dadoun controlled;
provided that: (1) Dadoun admits under oathat the time of his guilty plea to
willfully filing fraudulent PPP loan and forgiveness applications that caused the

U.S. Small Business Administration to disburse approximately $3.2 million in loan

.. proceeds, and (2) this conduct i 1s: taken into account as relevant conduct by the Court

-at the time of sentencing pursuant to U. Ss. S. G. § 1B1.2(c).
Case 3:25-cr-00215-RK. Document 38. Filed 04/08/25 . Page 2 of 11 PagelD: 197

But if a guilty plea i in 1 this matter i is not entered for any. reason or a L guilty
plea or judgment of conviction entered in accordance with this agreement does not
‘remain in full force and effect, this Office may reinstate any dismissed charges and
initiate any other charges against Dadoun even if the applicable statute of
limitations period for those charges expires after Dadoun signs this agreement, and
Dadoun agrees not to assert that any such charges are ‘time- barred. .

Sentencing

The violation of 18 U. S. C. § 1844 to which Dadoun agrees to plead guilty in

Count. 1 of the Information carries a statutory maximum prison sentence of 30 years

-anda statutory maximum fine equal to the greatest of (1) $1,000,000, or (2) twice
the gross amount of any. pecuniary gain ‘that any persons derived from the offense,
or (8) twice the gross amount of any P pecuniary loss sustained by any victims of the

offense.

The violation of 1 18 U. S.C. $1 1957 to which Dadoun agrees to plead guilty in
Count 2 of the Information « carries a statutory maximum prison sentence of 10 years
_and a statutory. maximum, fine equal. to the greatest of (1) $250,000, or (2) twice the
gross amount of:any pecuniary gain. that any persons derived from the offense, or
_ (8) twice the gross amount of any pecuniary loss sustained by any victims of the
offense, or (4) twice the amount of the criminally derived property involved in the
: transaction. The prison sentences on Counts 1 and 2 may run consecutively to any
- prison’sentence Dadoun is serving or is ordered to serve. Fines imposed by the
sentencing judge may be subject to the payment of interest.

.. The sentence to be imposed upon Dadoun is within the sole discretion of the
sentencing judge, subject to the provisions of the Sentencing Reform Act, 18 U.S.C.
§§ 3551-3742, and the sentencing judge’s consideration of the United States
Sentencing Guidelines. Those Guidelines are advisory, not mandatory. The
sentencing judge may impose any reasonable sentence up to and including the
statutory: maximum term of imprisonment and the maximum statutory fine. This
Office cannot and does not make any representation or promise as to what
Guidelines range may be found by the sentencing judge, or as to what sentence
Dadoun ultimately will receive,

Further, i in addition toi imposing any: other penalty on Dadoun, the sentencing
judge as part. of the sentence:

(1) will order Dadoun to pay an asaésement of $100 per count pursuant to
| 18 U.S.C. § 3013, which assessment must be paid by the date of

2). must order Dadoun to pay rettton pursuant to 18 U.S.C. § 3663A;
Case 3:25-cr-00215-RK Document 38 Filed 04/08/25 Page 3 of 11.PagelD: 198

'. (3). may order Dadoun, pursuant to 18 U.S.C. § 3555, to give reasonable _
notice and éxplanation of the conviction to any victims of his offense;

(4) must order forfeiture, pursuant to 18 U.S. C. §§ 982(a)(1) and 982(a)(2); |

(5) pursuant to 18 U.S.C. § 3583 may require Dadoun to. serve a term of

a supervised release of not more than five years, with respect to Count.
One, and three years, with respect to Count: Two, which will begin. at
the expiration of any term of imprisonment imposed. Should Dadoun_
be placed on a term of supervised release and subsequently violate any
of the conditions of supervised release before the expiration of its term,
Dadoiin may be sentenced to not more than three years’ imprisonment

with respect toa violation of a term of supervised release imposed i in

connection with Count One, or two years’ imprisonment with respect to -
a violation of a term of supervised release imposed in connection with
Count Two, in addition to any prison term previously imposed,
regardless of the statutory maximum term of imprisonment set forth
above and without credit for time previously served on post-release
supervision, and may be sentenced to an additional term of supervised

release.
Restitution

Pursuant to the Mandatory Victim Restitution Act, 18 U.S.C. § 3663A,
Dadoun agrees to pay full restitution to all victims of his CARES Act loan fraud who
were directly harmed by Dadoun’s criminal scheme and conduct, in an amount that
fully compensates the victims for the losses sustained as a result of those offenses.
Dadoun acknowledges and understands that pursuant to 18 U.S.C. § 3663A(a)(3),
the Court shall order Dadoun to pay restitution to victims of the scheme in the

amount of $3,239,773.43.

Forfeiture

As part of Dadoun’s acceptance of responsibility, and (1) pursuant to 18
U.S.C. § 982(a)(2), Dadoun agrees to forfeit to the United States all of right, title,
and interest in any property, real or personal, which constitutes or was derived
from proceeds Dadoun obtained that are traceable to the offense charged in Count 1
of the Information, and (2) pursuant to 18 U.S.C. § 982(a)(1), Dadoun agrees to
forfeit to the United States, any and all property involved in, or traceable to, the
money laundering offense charged in Count 2 of the Information. Dadoun further
acknowledges that the value of such property was $2,125,000; that one or more of
the conditions set forth in 21 U.S.C. § 853(p) exists; and that the United States is
entitled to forfeit substitute assets equal to the value of the proceeds obtained by
the defendant, in an amount not to exceed $2,125,000 (the “Money Judgment”).
Dadoun consents to the entry of an order requiring Dadoun to pay the Money

-3-
. Case 3:25-cr-00215-RK Document 38 _ Filed 04/08/25 . Page 4 of 11 PagelD: 199

fe J udgment, i in’ the manner . described below (the “Order” ; and that the Order will be
final as to Dadoun prior to sentencing, pursuant to Rule 32.2(b)(4) of the Federal
Rules of Criminal Procedure, and which may be satisfied 1 in whole or in part with

substitute assets.

a “All payments made in full or partial satisfaction of the Money J udgment.
shall be made by postal money order, bank, or certified, check, made payable i in this
. and ¢ case number on the face of the check; ‘and shall be delivered by mail to the .
United States Attorney’ s Office, District of New: Jersey, Attn: Asset Recovery and.

Money Laundering Unit, 970 Broad Street, 7th Floor, Newark, New Jersey 07 102

‘Dadoun further agrees that upon entry of. the Order, this Office may conduct
any discovery needed to identify, locate, or dispose of property. sufficient to pay the
-. Money J udgment i in full or in, connection with any. petitions filed with. regard to

proceeds or substitute assets, including depositions, interrogatories, and requests
for production of documents, and the issuarice of subpoenas.

Dadoun waives the requirements of Fed. R. Crim, P. 32.2 and 48(a) regarding

_ notice of the forfeiture in the charging instrument, announcement of the forfeiture
-- at sentencing, and incorporation of the forfeiture in the judgment. Dadoun

. understands that criminal forfeiture is part of the sentence that may be imposed in
'. this case and waives any failure by the court to advise Dadoun of this pursuant to

- Fed. R. Crim. P. 11(b)(1)(J) at the guilty plea proceeding. Dadoun waives all

constitutional, statutory, and other challenges to the forfeiture on all grounds,

including that the forfeiture constitutes an excessive fine or punishment under the

Eighth Amendment. Dadoun further understands that Dadoun has no right to

demand that any forfeiture of Dadoun’s assets be treated as satisfaction of any fine,

restitution, cost of imprisonment, or any other penalty the Court may impose upon
. Dadoun in addition to forfeiture.

Dadoun further agrees that, not later than the date Dadoun enters a guilty

- plea, Dadoun will provide a complete and accurate Financial Disclosure Statement
on the form provided by this Office. If Dadoun fails to do so, or if this Office

determines that Dadoun has intentionally failed to disclose assets on the Financial
Disclosure Statement, that failure constitutes a material breach of this agreement,
and this Office reserves the right, regardless of any agreement or stipulation that
- . might otherwise apply, to oppose any downward adjustment for acceptance of
- responsibility pursuant to U.S.S.G. § 3E1.1, and to seek leave of the Court to
_ withdraw from this agreement or seek other relief.

| Rights of This Office Regarding Sentencing

Except as otherwise provided in this agreement, this Office may take any
"position with respect to the appropriate sentence to be imposed on Dadoun by the
Case 3:25-cr-00215-RK - Document 38 Filed 04/08/25 Page 5 of 11 PagelD: 200 |

sentencing judge. This Office may also-correct any misstatements relating to the |
sentencing proceedings and provide the sentencing judge and the United States
Probation Office all law and information relevant to sentencing, favorable or
otherwise. And this Office may inform the sentencing judge and the United States
Probation Office of: (1) this agreement; and (2) the full nature and extent of
Dadoun’s activities and relevant conduct with respect to this case.

Stip ulations

This Office and Dadoun will stipulate at sentencing to the statements set
forth in the attached Schedule A, which is part of this plea agreement. Both parties
understand that the sentencing judge and the United States Probation Office are
not bound by those stipulations and may make independent factual findings and
may reject any or all of the parties’ stipulations. Nor do these stipulations restrict
the parties’ rights to respond to questions from the Court and to correct
misinformation that has been provided to the Court.

This agreement to stipulate on the part of this Office is based on the
information and evidence that this Office possesses as of the date of this agreement.
Thus, if this Office obtains or receives additional evidence or information prior to
sentencing that it believes materially conflicts with a Schedule A stipulation, that
stipulation shall no longer bind this Office. A determination that a Schedule A
stipulation is not binding shall not release the parties from any other portion of this
agreement, including any other Schedule A stipulation.

If the sentencing court rejects a Schedule A stipulation, both parties reserve
the right to argue on appeal or at post-sentencing proceedings that the sentencing
court did so properly. Finally, to the extent that the parties do not stipulate toa
particular fact or legal conclusion in this agreement, each reserves the right to
argue how that fact or conclusion should affect the sentence.

Waiver of Appeal and Post-Sentencing Rights

As set forth in Schedule A and the paragraph below, this Office and Dadoun
waive certain rights to appeal, collaterally attack, or otherwise challenge the
judgment of conviction or sentence.

Immigration Consequences

Dadoun understands that, if Dadoun is not a citizen of the United States,
Dadoun’s guilty plea to the charged offenses will likely result in Dadoun being
subject to immigration proceedings and removed from the United States by making
Dadoun deportable, excludable, or inadmissible, or ending Dadoun’s naturalization.
Dadoun understands that the immigration consequences of this plea will be
imposed in a separate proceeding before the immigration authorities. Dadoun wants
Case 3:25-cr-00215-RK . Document 38 Filed 04/08/25 Page 6 of 11 PagelD: 201

and agrees to plead guilty to the charged offenses regardless of any immigration
‘consequences of this plea, even if this.plea will cause Dadoun’s removal from the
United States. Dadoun understands that Dadoun is bound by this guilty plea.
regardless of any immigration consequences. Accordingly, Dadoun waives any right -
‘to challenge the guilty plea, sentence, or both based on any immigration _
consequences. Dadoun also agrees not to séek to withdraw this guilty-plea, or to file.
a direct appeal, or any kind of collateral attack challenging the. guilty plea,
conviction, or sentence, based on any immigration consequences of the guilty plea or

sentence.
Other Provisions _

This agreement is limited to the United States Attorney’s Office for the
District of New Jersey and cannot bind other federal, state, or local authorities. If
requested to do so, however, this Office will bring this agreement to the attention of

other prosecuting offices.

This agreement was reached without regard to any civil or administrative
matters that may be pending or commenced in the future against Dadoun. So this
agreement does not prohibit the United States, any agency thereof (including the
Internal Revenue Service and Immigration and Customs Enforcement) or any third
party from initiating or prosecuting any civil or administrative proceeding against

him.

No provision of this agreement shall preclude Dadoun from pursuing in an
appropriate forum, when permitted by law, a claim that he received constitutionally _
ineffective assistance of counsel.
» Case 3:25-cr-00215-RK :.Document 38 Filed 04/08/25 Page 7 of 11 PagelD: 202

No Other Promises
This agreement constitutes the entire plea agreement between Dadoun and
this Office and supersedes any previous agreements between them. No additional

promises, agreements, or conditions have been made or will be made unless set
forth in writing and signed by the parties.

Very truly yours,

VIKAS KHANNA
Acting United States Attorney

/s/ Katherine M. Romano

By: Katherine M. Romano
Assistant U.S. Attorney

APPROVED:

Bernard J. Cooney
Chief, Health Care Fraud Unit
Case 3:25-cr-00215-RK Document 38 Filed 04/08/25 Page 8 of 11 PagelD: 203

I have received this letter from my attorney, Anthony J. Pope, Esq. I have
read it. My attorney and I have reviewed and discussed it and all of its provisions,
including those addressing the charges, sentencing, stipulations (including the
attached Schedule A), waiver, forfeiture, restitution, and immigration consequences.
I understand this letter fully and am satisfied with my counsel’s explanations. I
accept its terms and conditions and acknowledge that it constitutes the plea
agreement between the parties. I understand that no additional promises,
agreements, or conditions have been made or will be made unless set forth in
writing and signed by the parties. I want to plead guilty pursuant to this plea
agreement.

AGREED AND ACCEPTED:

Date: 05 February 2025

I have reviewed and discussed with my client this plea agreement and all of
its provisions, including those addressing the charges, sentencing, stipulations
(including the attached Schedule A), waiver, forfeiture, restitution, and immigration
consequences, My client understands this plea agreement fully and wants to plead

guilty pursuant to it.

Anthony J. Pope, Esq.
Counsel for Defendant
~ Case 3:25-cr-00215-RK .Decument 38 Filed 04/08/25 Page 9 of 11 PagelD: 204

"Plea Agisement With DanisLD Dadoun
ScheduleA

. 1. This Office and Dadoun recognize that the United States Sentencing
. Guidelines do not bind the sentencing judge. Each party nevertheless agrees to
these stipulations.

2, _ The version of the Guidelines effective November 1, 2024 applies in
this case.
| Count 1: Bank Fraud

_ 3. The applicable guideline is U.S.S.G. § 2B1.1(a)(1). This guideline
, ‘carries a Base Offense Level of 7.

a 4, Because this offense, including applicable relevant conduct, involved
loss totaling more than $1,500,000 but less than $3,500,000, the Specific Offense
Characteristic results in an increase of 16 levels. U.S.S.G. § 2B1.1(b)(1)(D).

5. "Because the defendant derived more than $1,000,000 in gross receipts

_;, from one or moye financial institutions as a result of the offense, including all

: relevant conduct under U.S.S.G. § 1B1.2(c), the Specific Offense Characteristic
a results i in an increase. of 2 levels. U.S.S.G. § 2B1.1(b)(17)(A).

oe 6. - The offense level for Count 1 is 25.

Count 2: Money Laundering

- 4, The applicable guideline is U.S.S.G. § 281.1, which requires the
application of U.S.S.G. §:2B1.1, the applicable guideline for the underlying offense

from which the laundered funds were derived (i. e., bank fraud), U.S.S.G.

§ 2S1.1(a)(1).

8. The base offense level under U.S.S.G. § 2S1.1 is therefore 25, as
described in Paragraphs 3 through 6 above.

9. Because the offense charged in Count 2 of the Information is violation
of 18 U.S.C. § 1957, the offense level is increased by 1 level. See U.S.S.G.

§ 2S1.1(b)(2)(A).
10. The offense level for Count 2 is thus 26.

Grouping of Multiple Counts

11. Pursuant to U.S.S.G. § 3D1.2(d), Counts 1 and 2 are grouped together
into a single group because the offense level for each count is determined largely on

-9-
Case 3:25-cr-00215-RK Document 38° Filed 04/08/25 Page 10.of 11 PagelD: 205 ©

' the basis of total amount of harm or loss. Because the counts involve offenses: of the
same general type to which different guidelines apply, the offense guideline that
produces the highest offense level is applied. See U.S.S.G. § 3D1. 3().

12, The adjusted offense level i is therefore 26.

Acceptance: of Responsibility and Plea

| 13. As of the date of this letter, Dadoun has clearly demonstrated a.
- recognition and affirmative acceptance of personal responsibility for the offenses.
-charged. Therefore, a downward adjustment of 2 levels for acceptance of
responsibility is appropriate if Dadoun’s acceptance'of. responsibility continues
through the date of sentencing. See U.S.S.G. § SEI. 1(a). . -

“44. _ Asof the: date of this letter, Dadoun has assisted authorities i in the |
investigation or prosecution of his own misconduct by timely notifying authorities of
his intention to enter a plea of guilty, thereby permitting this Office to avoid
preparing for trial and permitting this Office and the court to allocate their
resources efficiently. At sentencing, this Office will move for a further 1-point
‘reduction in Dadoun’s offense level pursuant to U.S.S.G. § 3E1.1(b) if the following
_. Conditions are met: (a) Dadoun enters a plea pursuant to this agreement, (b) this

Office, in its discretion, determines that Dadoun’s acceptance of responsibility has
: "continued through the date of sentencing and Dadoun therefore qualifies for a 2-
|. point reduction for acceptance of responsibility pursuant to U.S.S.G. § 3E1.1(a), and
an) Dadoun’ s offense level under the Guidelines prior to the operation of § 3E1.1(a) i is

«16 or greater. —

1b. OIE Dadoun establishes at sentencing that he has no criminal history
points and meets the other criteria in U.S.S.G. § 4C1.1, he will be entitled to'a

* further two-level reduction in his offense level, resulting in a total Guidelines
offense level of 21; otherwise, Dadoun’s total Guidelines offense level will be 23 (the

= “Total Offense Level”),

16: The parties agree | not to advocate for any upward or downward
adjustment or departure from the Guidelines range resulting from (a) the Total
Offense Level and (b) the criniinal history category that the sentencing judge
applies under Chapter 4 of the Guidelines without any departure or variance. But
each party may seek a variance from that Guidelines range, which the other party

may oppose.

17. Ifthe term of imprisonment does not exceed 57 months (if § 4C1.1 does
not apply), or 46 months (if § 4C1.1 does apply), and except as specified in the next
paragraph below, Dadoun will not challenge or seek to reduce by any means any
component of the sentence imposed by the sentencing judge for any reason other
- than ineffective assistance of counsel, The term “any means” includes a direct

~ appeal under 18 U.S.C. § 3742 or 28 U.S.C. § 1291, a motion to vacate the sentence

-10-
‘Case 3:25-cr-00215-RK | Document 38 Filed 04/08/25 - Page 11 of 11 PagelD: 206°

U.S.C. iv 3582(c)(1)(B) or “OQ. a motion for carly: termination of supervised release
under 18 U.S.C. § 3583(e)(1), and any other appeal, motion, petition, or writ,
however captioned, that seeks to attack or modify any component of the sentence. If
the term of imprisonment is at least 46 months (if § 4C1.1 does not apply), or 37
months (if § 4C1.1 does apply), this Office will not challenge by appeal, motion, or
writ any component of the sentence imposed by the sentencing judge. The
provisions of this paragraph bind the parties even if the sentencing judge employs a
Guidelines analysis different from the one above.

18. Both parties reserve the right to file or to oppose any appeal, collateral
attack, writ or motion not barred by the preceding paragraph or any other provision
of this plea agreement. Moreover, the preceding paragraph does not apply to:

(a) Any proceeding to revoke the term of supervised release.

(b) A motion to reduce the term of imprisonment under 18 U.S.C.
§ 8582(c)(1)(A).

(c) An appeal from the denial of a § 3582(c)(1)(A) motion on the
grounds that the court erred in finding no extraordinary and
compelling circumstances warranting a reduced term of
imprisonment or that the court failed to consider those
circumstances as a discretionary matter under the applicable
factors of 18 U.S.C. § 3553(a).


File and source

File

gov.uscourts.njd.565817.38.0.pdf

Size

917,178 bytes

SHA-256

1b3a80999c5bbf8f555861eaba4c7d07c8fe3f17479e8a2b69c262900554ca55

Our copy

gov.uscourts.njd.565817.38.0.pdf

Original

No public link identified.