Minneapolis, MN (KROC-AM News) – A Minnesota man is facing a five-count federal indictment for allegedly stealing close to $1 million in COVID-19 relief funds.
Federal prosecutors say 49-year-old Mark Erjavec of Edina is accused of devising and executing a scheme to fraudulently obtain federal COVID-19 relief funds by exploiting programs created to help small businesses survive the economic impacts of the pandemic. A news release from the U.S. Attorney’s Office for Minnesota says Erjavec reactivated dormant business entities he owned from the mid-1990s through the early 2000s and used them to submit fraudulent applications to the Economic Injury Disaster Loan and Paycheck Protection Programs.
U.S. Attorney Calls COVID Relief Fraud ‘Shameful’
“Erjavec stole nearly $1 million in government dollars meant to keep small businesses alive during the pandemic,” said Acting U.S. Attorney Joseph H. 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.”
Prosecutors Cite False Revenues and Fake Employees
The charges allege that Erjavec overstated revenues, claimed nonexistent employees, and fabricated IRS tax forms in the applications. According to federal prosecutors, he collected more than $975,000 through the alleged scheme and used the money for his own personal benefit.
Erjavec faces five counts of wire fraud.
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