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Complete Story
09/16/2026
The Feds and a court-appointed receiver spent two years tracking down a company’s assets. Neither knew about an undisclosed $25 million.
Kare 11
MINNEAPOLIS — A new federal court order raises questions about a previously undisclosed $25 million account tied to a St. Paul addiction recovery company at the center of a Medicaid fraud case.
Beginning in May 2024, KARE 11 Investigates reported on allegations of fraudulent billing at Evergreen Recovery – including 203 hours of work by one employee in a single day.
In July of that year, the FBI raided Evergreen and a federal judge froze the company’s assets.
Now, two years later, a court filing indicates authorities may have missed millions of dollars in a hidden account.
Evergreen Recovery co-owner David Backus recently told his attorney there is a $25 million certificate of deposit (CD) that should be included among the company’s assets.
Neither federal prosecutors nor the court-appointed receiver tasked with locating Evergreen’s assets knew about the account.
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