Evergreen Recovery leaders plead guilty in Medicaid fraud, kickback scheme
Two leaders of Evergreen Recovery, Shantel Magadanz and Heather Heim, pleaded guilty to conspiracy to commit wire fraud in a scheme prosecutors say involved illegal kickbacks with Sber Chances Sober Living—offering housing in exchange for attendance at Evergreen programming that was often not provided, with falsified records and coercion that allegedly cost taxpayers millions. A third Evergreen leader, Shawn Grygo, was indicted in December 2024 and has not pleaded guilty, and Minnesota Attorney General Keith Ellison condemned the theft of Medicaid funds and vowed continued enforcement.
📌 Key Facts
- On Oct. 23, 2025, Evergreen Recovery leaders Shantel Magadanz and Heather Heim pleaded guilty to conspiracy to commit wire fraud in a Medicaid fraud and kickback scheme.
- Prosecutors say the scheme involved illegal kickbacks with Sber Chances Sober Living, which provided housing in exchange for clients attending Evergreen programming that was often not provided.
- Authorities allege Evergreen staff falsified records and coerced people into unnecessary programs, causing losses of millions of dollars to taxpayers.
- A third Evergreen leader, Shawn Grygo, was indicted in December 2024 and has not pleaded guilty.
- Minnesota Attorney General Keith Ellison issued a statement condemning the theft of Medicaid funds and vowing continued enforcement.
📰 Sources (2)
MN Medicaid fraud: 2 plead guilty to recovery treatment overbilling
New information:
- Defendants identified as Evergreen Recovery leaders Shantel Magadanz and Heather Heim; both pleaded guilty to conspiracy to commit wire fraud.
- Scheme involved illegal kickbacks with Sber Chances Sober Living, offering housing in exchange for attending Evergreen programming that was often not provided.
- A third Evergreen leader, Shawn Grygo, was also indicted in December 2024 but has not pleaded guilty.
- Minnesota AG Keith Ellison issued a statement condemning theft of Medicaid funds and vowing continued enforcement.
- Prosecutors allege falsified records, coercion into unnecessary programs, and losses totaling millions to taxpayers.