EDINA, Minn. — A 49-year-old man from Edina, Mark Erjavec, is facing federal charges for allegedly defrauding COVID-19 relief programs out of nearly $975,000 intended to support small businesses during the pandemic.
Erjavec appeared in federal court after being indicted on five counts of wire fraud. According to federal prosecutors, he exploited the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) by submitting fraudulent applications under dormant business entities.
Investigators allege that Erjavec reactivated businesses that had been dissolved between 2008 and 2013, falsely claimed nonexistent employees, and inflated revenues to qualify for pandemic relief funds. He is also accused of opening new bank accounts under the names of these companies to receive the funds.
Minneapolis FBI Special Agent in Charge Alvin M. Winston Sr. commented on the case:
“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.”
Winston emphasized the FBI’s continued commitment to investigating pandemic-related fraud and working with the SBA and the U.S. Attorney’s Office to hold offenders accountable.
