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KARE 11 Investigates | Abandoned and Afraid: Evergreen Recovery’s former clients in crisis

Shut down amidst a fraud probe, Evergreen Recovery’s closure leaves vulnerable clients in unsafe conditions.

A.J. Lagoe, Steve Eckert, Gary Knox

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Published: 6:05 PM CDT August 7, 2024
Updated: 10:09 PM CDT August 7, 2024

MINNEAPOLIS

“We need help for real,” said a longtime Evergreen Recovery client. “Like, I’m literally living out of my car.”

KARE 11 first met a woman who called herself Baby J. Keaton last week as she watched agents from the FBI and other federal agencies raid the St. Paul addiction treatment center as part of a multi-million-dollar fraud investigation.

One week later, she says the Evergreen-run sober home where she had been living has gotten too dangerous. She and other clients report escalating drug use and chaos.

“Once they closed the center down, everyone got to acting crazy,” Keaton said.

She says drug use exploded, and people – some prone to violence, some with severe mental illness – are being left unsupervised and untreated.

“They need medicine. They’re not getting their medicine now,” she explained. “They’re going crazy in these houses.”

Credit: KARE 11
This longtime Evergreen client says she's now living in her car.

Other clients who spoke to KARE 11 agreed. Since the raid, they say the problems have escalated.

“I’m not getting my medicine,” said DaJuan Miller as he sat in a car outside an Evergreen sober home. “I try to pray and stay strong – but it’s hard.”

Overdose concerns

Miller says his sober home has become a no-man’s land. Syringes and other signs of drug use seen on the ground in the backyard hint at what’s taking place inside.

“Not supplying Narcan or nothing no more,” Miller told KARE 11. “So, if somebody does overdose, what do we do?”

“A couple of my friends overdosed. It’s just wild,” he said.

Credit: KARE 11
The syringe and other signs of drug use can be seen on the ground outside the sober home.

It’s a real concern. City records obtained by KARE 11 show that even before the federal raid, there were reports of overdose deaths in Evergreen-supervised sober homes.

At one Minneapolis address where Evergreen housed clients, police records and Medical Examiner reports show three deaths in the last three years.

Former employees shared pictures of violent fights that took place, but they say they were ordered by Evergreen management not to report incidents to police.

That is one of the allegations contained in an FBI affidavit filed as part of a court case to freeze the assets of Evergreen and its owners.

Court documents revealed that federal authorities are investigating what they believe is a “fraudulent conspiracy” totaling “at least $28 million.”

FBI raid targets fraudulent billing

The FBI raid came in the wake of KARE 11's multi-part "Recovery Inc." investigation which exposed Evergreen owners David Backus and Shawn Grygo living a lavish lifestyle – with expensive cars and travel on private jets –  as their company billed millions of dollars to taxpayer-funded Medicaid for services clients and employees said were not always provided as claimed.

KARE 11 documented examples of questionable billing at Evergreen. Both workers and clients accuse the company of improperly billing taxpayers for treatment never provided, falsely billing group activities as if they were a series of individual interactions and overstating the times spent on van rides to and from recovery treatment.

Credit: KARE 11
FBI agents carried out boxes of evidence during a raid on Evergreen Recovery's offices.

In addition to billing for treatment services not provided, investigators allege that Evergreen used the offer of free housing in its sober homes to recruit homeless people to enroll in its taxpayer-funded substance abuse program “regardless of whether they need or want” the treatment. The government claims that amounts to an illegal kickback scheme.

“It’s a crisis”

Two landlords who had leased properties to Evergreen for use as sober homes agreed there’s a serious situation.

“It’s a crisis,” said Kent LeFevre.

“Who’s making sure these people are all right?” asked Ozzie Zahran.

Both men say Evergreen’s owners had been stiffing them on rent payments for months. Now, they say they’re left with Evergreen clients on their properties who have largely been abandoned.

The utilities were in Evergreen’s name and haven’t been paid, according to the landlords. So, in some homes, power has been turned off, leaving residents in the dark with no way to even keep food.

Credit: KARE 11
Landlord Kent LeFevre calls the housing situation "a crisis."

The landlords say they’ve been scrambling to get utilities switched over to their companies, for the safety of people still living in their homes.

 They told KARE 11 they haven’t heard from Evergreen – or from state or federal authorities.

“We haven’t heard from anybody,” LeFevre said.

The landlords say they’re trying to do what’s right – going house to house to meet with Evergreen’s cast-off clients.

LeFevre, who has a background in finance and IT, created a digital census form and has been going to his 14 houses gathering data on the residents – such as their insurance and whether medication management is needed – to assist in finding them another source of treatment.

“I’ve just told ‘em to shelter in place,” LeFevre said. “We’re trying to get them the resources they need.”

The landlords say the state Department of Human Services (DHS) and local officials should be doing more.

“This can’t be news that when you don’t supervise people that need extensive supervision – this is a recipe for disaster!” Zahran said.

How to get help

DHS provided this statement Wednesday night: "It is critical that people have supports for vital health care services and housing. DHS is working hard along with others to make sure that Evergreen clients have referrals to other providers of health care services. While DHS does not license or have regulatory oversight over sober homes, DHS is also working with county partners, the Department of Corrections and federal partners, including the U.S. Attorney’s Office, to address housing disruptions. In this case, county housing and corrections staff are best positioned to respond to emergency housing needs and connect people to the resources and services they need."

Meanwhile, DHS provided this list of resources for people impacted by the Evergreen shutdown.

For those experiencing housing crisis

Ramsey County Housing Supports Services Resources

Hennepin County Housing Support Services Resources

(trchennepin.com).

  • People seeking general information about and referrals to Hennepin County Resources:
  • Hennepin County Front Door: call 612-348-3000 to connect with available resources.

Other Housing Resources

Veterans Community Resource Referral Center

For those needing substance use disorder (SUD) treatment

General SUD Resources

Department of Human Services (DHS) Resources

Managed Care Organization Enrollees

If enrolled in a Managed Care Organization reach out to your health care plan at Health plan member services phone numbers / Minnesota Department of Human Services (mn.gov) for alternative treatment providers

For those experiencing food emergency

Supplemental Nutrition Assistance Program (SNAP)

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