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Rikki Lee Kor of Marshall, Minn., accused of bilking money from KHC Construction via forged checks

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MARSHALL, MINN. – The former accountant of a family construction company skimmed more than $95,000 from the business and spent it on gift cards, a Spotify subscription, and trips to casinos among other things, county prosecutors said.

Rikki Lee Kor, 49, of Marshall was charged with 24 felony counts of fraud in connection with the embezzling that spanned about a year until this summer.

Kor was charged Friday and is scheduled to make her first court appearance Oct. 1.

According to the criminal complaint:

Kor stole the money by issuing checks to herself and misusing business credit cards while working at KHC Construction, located in Marshall.

The company’s owner Kim Christensen, described in the complaint as “not great with technology,” told a detective he hired Kor through a staffing company known as PeopleReady. The plan was that the company would screen recruits and he would pay them to pay the new hire. He offered Kor a job in June of 2023.

Christensen said he hired an outside accounting firm to help his business as they were moving offices, which is when they began to find suspicious transactions.

Christensen said the company began to find checks that were signed by him, but didn’t match his signature. Investigators found 12 checks for KHC Construction issued through First Dakota National Bank between Nov. 16, 2023, and April 12, 2024, all cashed at Prairie’s Edge Casino in Granite Falls.



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Central High graduate with Rondo roots tapped to be next superintendent of St. Paul Public Schools

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Still, Board Member Chauntyll Allen said Thursday: “Each one of these candidates could lead this district in a wonderful way.”

Stanley began her teaching career in the East Metro Integration District and then served as a principal in the Roseville Area Schools and an administrator in the Burnsville-Eagan-Savage and Eden Prairie districts before taking over three years ago in Edina, where she oversees 8,600 students.

She is a product of the Rondo neighborhood, she told school board members Wednesday, with a “long, rich history in St. Paul.” Initially, Stanley worked as an occupational therapist, but she then switched to teaching when a student asked her “whether or not you could be brown and you could be smart,” she recalled, describing it as a “pretty profound experience.”

In Burnsville, she oversaw programming for English language learners, and in subsequent moves to Eden Prairie and Edina, succeeded in narrowing achievement gaps. She said she was impressed with the SPPS Reads program to boost student literacy and sees it as a perfect fit for her skillset.

“I say that literacy is the currency of power in the United States,” Stanley said.

Mhiripiri-Reed started her career as a middle school teacher in St. Paul, and then went on to be a high school principal in Brooklyn Park and a school administrator in Monterey, Calif., and Washington, D.C., before taking the top job in Hopkins overseeing 6,900 students.



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Medicaid fraud scheme in Minnesota hekped women pay for private jets, luxury cars

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Three Minnesota women have been accused in federal court of enriching themselves from a health care fraud scheme, spending the proceeds on private jets, luxury vehicles and other items.

The charges lay out how the three reportedly used an outpatient drug and alcohol treatment center called Evergreen Recovery, Inc., based in St. Paul, to defraud Medicaid and other health care programs by billing for treatment that was not provided and services that were not eligible for reimbursement.

The scheme also allegedly involved the defendants using free housing as a kickback to induce clients to remain in Evergreen Recovery treatment so the clients’ names and information could be used to overbill Medicaid.

Charged in the case is Shawn Ashley Grygo, 37, of Forest Lake; Shantel Rene Magadanz, 34, of Stacy; and Heather Lynn Heim, 46, of St. Paul. Each faces nine counts of wire fraud, among other charges.

Magadanz and Heim made their first appearances in federal court Thursday. Grygo is set for to appear in court Monday. None have entered a plea, according to online court records.

The complaint identifies Magadanz as the chief executive of Evergreen, Heim as the lead financial and operations officer and Grygo as the head of day-to-day operations.

From March 2018 to July 2024, Evergreen submitted invoices for $30 million from Medicaid and Medicaid-funded health care programs, the complaint said.

The three received excessive salaries in return. Magadanz was paid $600,000 in 2023, and was on track to receive more than $1 million this year, according to the complaint.



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Duluth bike group asks for safer roads after cyclist dies crossing Mesaba Avenue at rush hour

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DULUTH – Alice Tibbetts slipped into all the gear she wears to make herself more visible to vehicles as a decades-long, year-round bike commuter: bright yellow jacket, reflective vest, several lights and a reflective helmet.

“The question is, would this have saved me from a driver going 42 miles an hour down Mesaba [Avenue]?” she asked, referencing a commuter-heavy road. “The answer is no.”

Tibbetts and other members of Vibrant Streets Duluth, a chapter of the Bicycle Alliance of Minnesota, hosted a call to the city of Duluth, St. Louis County and the Minnesota Department of Transportation for improved safety Thursday afternoon in response to the Dec. 4 death of a cyclist who was struck by two cars and killed as he crossed a high-traffic highway here during rush hour. The group is asking for speed monitoring or flashing beacons at dangerous crossings, enforcement of pedestrian right-of-way laws, data-driven solutions and a city transportation commission.

Steven Edward Hoover, 60, was hit at 5 p.m. as he crossed Mesaba Avenue below First Avenue W. He was taken to a hospital where he was pronounced dead, according to a news release from Duluth police.

The day after Hoover’s death, members of Vibrant Streets Duluth visited the site of the crash to clock traffic using a radar gun. Forrest Vodden, the group’s chairman, said it wasn’t a scientific study, but a 15-minute sampling found most drivers exceeding the speed limit by 8-10 miles per hour and some drivers surpassed 50. The speed limit on this stretch is 30.

“We just wanted to get a feel for the speeds at that time of day at that location,” he said.

The transportation commission could be a reality. In his state of the city speech earlier this year, Mayor Roger Reinert noted that Duluth has 39 boards and commissions and he was looking to the city council to align and reform some of these groups. At the same time, he suggested the formation of a transportation commission that would offer input on streets, sidewalks, bike lanes and other paths.

City Councilor Mike Mayou, who was at Vibrant Streets Duluth’s event, said he could see such a committee developing within the next six to eight months, if not sooner. The logistics of it still need to be planned.



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