U. S. Attorney Andrew M. Luger | U.S. Department of Justice
A federal indictment has been issued against three individuals accused of orchestrating a Medicaid fraud scheme involving wire fraud and money laundering. The U.S. Attorney Andrew M. Luger announced the charges, which include conspiracy to commit wire fraud, against Shawn Ashley Grygo, Shantel Rene Magadanz, and Heather Lynn Heim.
Court documents reveal that between March 2018 and July 2024, the defendants allegedly executed a healthcare fraud operation through Evergreen Recovery, Inc., an outpatient drug and alcohol treatment center. They reportedly overbilled Medicaid by charging for unprovided services or those not eligible for reimbursement. Additionally, they allegedly billed for mandatory treatment sessions required for clients to remain in free housing offered as kickbacks.
The indictment details how the defendants used "sober" homes controlled by Evergreen as incentives to keep clients enrolled in their programs. This strategy enabled them to use client information to inflate Medicaid claims. They recruited potential clients from homeless shelters, residential treatment programs, and probation offices.
The scheme purportedly included coercive tactics where clients were threatened with eviction if they failed to attend mandatory counseling sessions. The defendants are also accused of fabricating electronic health records after service dates and instructing Peer Coaches to misrepresent interactions with clients to support overbilling.
Grygo faces additional charges of money laundering alongside one count of conspiracy and nine counts of wire fraud shared with Magadanz and Heim. Grygo is scheduled for an initial court appearance on December 23, while Magadanz and Heim appeared on December 19 under release conditions prohibiting contact with former clients or employees of Evergreen Recovery.
The investigation was led by the FBI and Health and Human Services – Office of Inspector General, with assistance from the Medicaid Fraud Control Unit at the Attorney General’s office. Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting this case.
It is important to note that an indictment represents allegations only; all defendants are presumed innocent until proven guilty in court.
