MINNEAPOLIS – Mark Erjavec, 49, of Edina, Minnesota, is facing five counts of wire fraud after allegedly pilfering $975,000 in Covid-19 relief funds. The indictment, announced today by Acting U.S. Attorney Joseph H. Thompson, details a brazen scheme to exploit pandemic-era programs designed to keep businesses afloat.
“Erjavec stole nearly $1 million in government dollars meant to keep small businesses alive during the pandemic,” Thompson stated bluntly. “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 feds say Erjavec didn’t build a business, he resurrected ghosts.
According to the indictment, Erjavec dusted off nine dormant business entities – including Tricolor Heron, LLC, and Mesaba Finance – Law, LLC – all administratively dissolved between 2008 and 2013. From April to August 2020, he allegedly used these shell companies to submit fraudulent applications for Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds to the Small Business Administration (SBA). He allegedly inflated revenues, invented employees, and forged IRS tax forms to make it look legit.
The scheme wasn’t subtle. Erjavec reportedly opened new checking accounts for these revived entities on the same day – or within days – of re-registering the businesses. This allowed him to funnel the fraudulently obtained funds – totaling over $975,000 – directly into accounts he controlled. The money wasn’t used to save jobs or pay rent; it was spent for Erjavec’s personal benefit, the indictment alleges.
“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,” said Minneapolis FBI Special Agent in Charge Alvin M. Winston Sr. “Erjavec re-registered dormant business entities in order to facilitate the theft of more than $975,000 in taxpayer dollars.” Winston vowed to pursue the case “full speed ahead.”
The investigation was a collaborative effort by the Office of Inspector General – U.S. Department of Commerce, the FBI, and the Pandemic Response Accountability Committee (PRAC) Task Force. Assistant U.S. Attorney Bradley M. Endicott is leading the prosecution. It’s important to remember that an indictment is just an accusation; Erjavec is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. But the feds are confident they have their man.
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Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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