An Edina, Minn., man has been indicted on five counts of wire fraud for allegedly fraudulently obtaining over $975,000 in COVID-19 relief funds, acting U.S. Attorney Joe Thompson announced on Tuesday.
The federal indictment alleges that Mark Erjavec, 49, was residing Denver, Colo., from at least April 2020 through August 2020, during which time he exploited COVID-19 emergency funding mechanisms through false and fraudulent loan applications to obtain funds he knew he was not entitled to receive.
Erjavec was the owner and principal officer of multiple business entities registered in Minnesota from the mid-90s to the early 2000s, all of which had been administratively terminated or dissolved by the Minnesota Secretary of State between 2008 and 2013. However, Erjavec “reactivated” the dormant businesses and applied for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds on behalf of the defunct or non-existent businesses that had no verifiable income or payroll expenses at the time, the indictment states.
In those submissions, Erjavec overstated revenues, claimed nonexistent employees, and attached fabricated IRS tax forms to lend the appearance of legitimate business activity. Erjavec often opened new checking accounts for the shell entities on the same day (or within days) of registering the business.
As a result of his fraud scheme, Erjavec obtained more than $975,000 in COVID-19 relief funds. Erjavec stole that money, which he wired into accounts he controlled exclusively, and he used the money for his own personal benefit and spending, charges say.
“Erjavec stole nearly $1 million in government dollars meant to keep small businesses alive during the pandemic,” said Thompson. “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.”
Erjavec made his initial court appearance on Tuesday and was subsequently conditionally released on his own recognizance. A booking photo was not available.
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Minnesota Crime Watch & Information publishes news, info and commentary about crime, public safety and livability issues in Minneapolis, the Twin Cities and Greater Minnesota.
Crime Watch MN
Minnesota Crime Watch & Information publishes news, info and commentary about crime, public safety and livability issues in Minneapolis, the Twin Cities and Greater Minnesota.
