Mark Erjavec, a 49-year-old resident of Edina, Minnesota, has been indicted on five counts of wire fraud for allegedly obtaining more than $975,000 in Covid-19 relief funds through fraudulent means. The indictment was announced by Acting U.S. Attorney Joseph H. Thompson, and Erjavec made his initial appearance in federal court.
According to the indictment, Erjavec exploited federal programs designed to support small businesses during the Covid-19 pandemic. He is accused of reactivating dormant business entities that he previously owned—such as Tricolor Heron, LLC and Mesaba Finance – Law, LLC—which had been dissolved between 2008 and 2013. From April to August 2020, Erjavec allegedly used these entities to submit false applications for Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds from the Small Business Administration (SBA). Authorities say he overstated revenues, claimed employees who did not exist, and submitted fabricated IRS tax forms.
Acting U.S. Attorney Joseph H. Thompson stated: “Erjavec stole nearly $1 million in government dollars meant to keep small businesses alive during the pandemic. When Minnesotans were struggling to keep their doors open and pay their workers, Erjavec lined his own pockets. Fraud that exploits a crisis is especially shameful.”
The investigation found that Erjavec opened new checking accounts for these shell companies around the time they were reactivated and wired the relief funds into accounts under his exclusive control for personal use.
Minneapolis FBI Special Agent in Charge Alvin M. Winston Sr. commented: “As alleged in the indictment, Mark Erjavec knowingly submitted false and fraudulent documents to the Small Business Administration in order to take money intended for legitimate small businesses suffering during the Covid-era economic downturn. Erjavec re-registered dormant business entities in order to facilitate the theft of more than $975,000 in taxpayer dollars. Our efforts to stop this egregious fraud are moving forward full speed ahead; we will work with our partners at the Small Business Administration and the U.S. Attorney's Office to hold accountable those who illegally enrich themselves by defrauding the government.”
The case resulted from an investigation led by the Office of Inspector General – U.S. Department of Commerce and the FBI as part of the Pandemic Response Accountability Committee (PRAC) Task Force.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting this case.
An indictment is an allegation; Erjavec is presumed innocent until proven guilty beyond a reasonable doubt in court.
