Minnesota Attorney General Keith Ellison expressed approval of the federal indictments against Shawn Grygo, Heather Heim, and Shantal Magadanz for charges related to wire fraud and money laundering. The indictments are a result of collaborative efforts between the U.S. Attorney’s Office and AG Ellison’s Medicaid Fraud Control Unit.
“Fighting Medicaid fraud is a core function of my Office. I do not tolerate cheats and crooks who steal from taxpayers and rob people of the healthcare they deserve by defrauding Medicaid,” stated Attorney General Ellison. He acknowledged United States Attorney Andy Luger and his team for their work in securing these indictments. Ellison also extended gratitude to his office's attorneys, investigators, and analysts for their role in investigating the case.
The accused, Grygo, Heim, and Magadanz, allegedly engaged in overbilling practices with DHS and UCare for services not provided by Evergreen Recovery. Additionally, they reportedly directed clients to Second Chances Sober Living under conditions that benefited Evergreen financially through illegal kickbacks.
The Minnesota Attorney General’s Office’s Medicaid Fraud Control Unit worked alongside federal agencies such as the FBI and DHHS/OIG during the investigation. Their involvement included interviews with key figures, executing a search of Evergreen Recovery in July 2024, data analysis, sharing expertise with the U.S. Attorney’s Office, and other investigative activities.
Attorney General Ellison's Medicaid Fraud Control Unit aims to uncover fraudulent activities within Medicaid programs. It receives 75% of its funding from the U.S. Department of Health and Human Services under a grant totaling $4,409,872 for FY 2025; the remaining 25%, amounting to $1,469,955 for FY 2025, is funded by Minnesota.
It is important to note that an indictment is an allegation; defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.