In what's unraveling as a ruthless exploitation of the healthcare system, three individuals from Minnesota have found themselves facing charges in a Medicaid fraud conspiracy scheme, as reported by the U.S. Attorney's Office. Shawn Ashley Grygo, Shantel Rene Magadanz, and Heather Lynn Heim are accused of orchestrating overbilling ploys through their treatment center, Evergreen Recovery, Inc., by charging for services that were never provided or ineligible for Medicaid reimbursement.
Between March 2018 and July 2024, the trio allegedly used "sober" homes tied to Evergreen to coerce clients into treatment by offering free housing as a kickback and threatening eviction for non-compliance, according to the U.S. Attorney's Office, District of Minnesota. They targeted vulnerable individuals from homeless shelters, treatment centers, and jails to inflate Medicaid billing. Grygo faces charges of conspiracy to commit wire fraud, nine counts of wire fraud, and three counts of money laundering. He is scheduled for a court appearance on December 23, while Magadanz and Heim appeared on December 19 and were released under set conditions.
The case, which highlights the pervasive issue of healthcare fraud, is the product of investigative efforts by the FBI and the Health and Human Services – Office of Inspector General with assistance from the Medicaid Fraud Control Unit. Assistant U.S. Attorney Lindsey E. Middlecamp is leading the prosecution effort to bring the alleged fraudsters to justice, as per the U.S. Attorney's Office, District of Minnesota. Although an indictment is not a conviction, Grygo, Magadanz, and Heim must now navigate the legal system under the presumption of innocence until proven guilty.
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