United States of America v. Evergreen Recovery Inc., et al.

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UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
United States of America,
Plaintiff,
v.
Evergreen Recovery Inc., Evergreen
Mental Health Services Inc., Ethos
Recovery Clinic Inc., Second Chances
Recovery Housing Inc., Second Chances
Sober Living, Inc., David Backus, Shawn
Grygo, and Shantel Magadanz,
Defendants.
No. 24-cv-2944 (KMM/JFD)
ORDER
On December 1, 2025, the Court ordered a partial distribution of receivership funds
in this case. (Dkt. 79.) That Order required the Receiver to pay former employees of the
Evergreen entities a portion of the unpaid wages owed to them.
The Court has received recent inquiries from former employees who expected to
receive payment but have not yet received any funds. It is important that funds be dispersed
in a timely manner in compliance with the Court’s Order. And the Court, former
employees, and interested parties must be kept apprised of the status of the receivership in
this matter. Additionally, this matter must be moved toward final resolution. Therefore, IT
IS HEREBY ORDERED THAT:
1. 	On or before April 29, 2026, the Receiver shall file a detailed update
identifying what payments have been made in compliance with the Court’s
December 1, 2025 Order, what payments remain, and whether any barriers
remain to finalizing the identified payments.
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2. 	The United States shall meet and confer with the Receiver regarding
distribution of remaining unallocated funds in this matter.
3. 	On or before May 15, 2026, the United States must file its Motion for
Distribution of the remaining assets to the government if it still wishes to do
so. (See Dkt. 73.)
4. 	On or before May 21, 2026, the Receiver must file any competing proposal
for distribution of remaining assets.
IT IS SO ORDERED.
Date: April 15, 2026 	s/Katherine M. Menendez
Katherine M. Menendez
United States District Judge
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