LIBERTY –– The former owner of M&M Auto Group in Liberty, Howard Braunstein, pled guilty in federal court recently to one count of wire fraud. 

Braunstein had been charged in the Southern District of New York with submitting fraudulent applications for Pay Protection Program (PPP) loans.

According to court documents, from around April 2020 through at least October 2021, Braunstein fraudulently obtained PPP funds from the U.S. Small Business Association (SBA) and then applied for loan forgiveness.

While the COVID-19 pandemic was threatening businesses across the country in 2020, the U.S. government issued nearly $800 billion in PPP loans. The program was intended to help keep employees on the payrolls while the pandemic had largely shut down the economy.  

More than two years later, some 91 percent of PPP loans have been either partially or entirely forgiven. 

An NPR investigation reported that virtually all PPP loans are forgiven with limited scrutiny. 

Court documents in Braunstein’s case did not specify the exact details of the fraud or the precise figure of funds obtained fraudulently. 

According to public records for PPP loans, M&M Auto Inc. received $350,000 to cover payroll for 24 employees and M&M Powersports Inc. received $381,669 to cover payroll for 23 employees. 

The Democrat reached out to the Law Office of Kerry Lawrence, which is representing Braunstein. They declined to comment.

Founded in 1989 by Martin Braunstein, Howard’s father, M&M Auto Group on Mill Street in Liberty was at one time one of Sullivan County’s largest car dealerships. Before Chapter 11 bankruptcy proceedings in 2019, M&M was a franchise dealership for Ford, General Motors and Chrysler.

Braunstein posted a $250,000 bond and is expected to face sentencing in February, 2023.