COVID-19 fraud: Edina man indicted in $975,000 scheme

EDINA, Minn. (FOX 9) - An Edina man appeared in federal court after being charged with five counts of wire fraud related to the theft of $975,000 in COVID-19 relief funds.

Mark Erjavec, 49, of Edina, is accused of exploiting the COVID-19 crisis by defrauding relief programs meant to keep small businesses alive. 

COVID fraud scheme

Big picture view:

Federal prosecutors allege that Erjavec reactivated dormant business entities to file false applications for Economic Injury Disaster Loans and Paycheck Protection Program funds.

Erjavec's businesses, dissolved between 2008 and 2013, were used to claim nonexistent employees and inflated revenues falsely, the charges state. He reportedly opened new accounts for these entities to facilitate the fraud.

What they're saying:

Minneapolis FBI Special Agent in Charge Alvin M. Winston Sr. shared the following statement on the indictment:

"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."