Three Indicted In Medicaid Fraud Conspiracy Scheme

MINNEAPOLIS (WJON News) -- A 13-count indictment charges three defendants with conspiracy to commit wire fraud, wire fraud, and money laundering of proceeds derived from fraud.

According to court documents, between March 2018 and July 2024, 37-year-old Shawn Grygo of Forest Lake, 34-year-old Shantel Magadanz of Stacy, and 46-year-old Heather Heim of St. Paul devised and carried out a healthcare fraud scheme to systematically overbill for drug and alcohol treatment services.

They used an outpatient drug and alcohol treatment center called Evergreen Recovery, Inc. to defraud Medicaid and other health care programs by billing for treatment that was not provided, services that were not eligible for reimbursement, and billing for treatment services clients were required to attend as a mandatory condition of remaining in free housing provided as a kickback.

Grygo, Magadanz, and Heim are each charged with one count of conspiracy to commit wire fraud and nine counts of wire fraud. Grygo is also being charged with three counts of money laundering.

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Grygo is expected to make her initial appearance on Monday. Magadanz and Heim made their initial appearances on Thursday and were released on conditions, including a condition prohibiting contact with former clients and employees of Evergreen Recovery and its related entities.

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