Minneapolis, MN. — A federal grand jury has indicted Mark Erjavec, 49, of Edina, Minnesota, on five counts of wire fraud for allegedly stealing more than $975,000 in COVID-19 relief funds meant for struggling small businesses.
According to the indictment, Erjavec exploited federal pandemic relief programs by reactivating nine dormant business entities he once owned—including Tricolor Heron, LLC and multiple Mesaba Finance companies—that had been dissolved between 2008 and 2013. Prosecutors allege that between April and August 2020, Erjavec revived these shell entities and submitted fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration.
Court records state that Erjavec fabricated IRS tax documents, overstated revenues, and claimed nonexistent employees to make the businesses appear operational. He frequently opened new checking accounts for the entities within days of reviving them, then diverted the federal funds into accounts under his personal control.
Acting U.S. Attorney Joseph H. Thompson said Erjavec “stole nearly $1 million in government dollars meant to keep small businesses alive,” calling the alleged scheme “especially shameful.” FBI Special Agent in Charge Alvin M. Winston Sr. said Erjavec “knowingly submitted false and fraudulent documents” to siphon taxpayer money during an economic crisis.
Erjavec made his initial appearance in federal court Thursday. The case is being prosecuted by Assistant U.S. Attorney Bradley M. Endicott and investigated by the Department of Commerce Office of Inspector General and the FBI, working under the Pandemic Response Accountability Committee (PRAC) Task Force.
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