Lovato, sporting what appeared to be a diamond ring, and Levy were all smiles when they went out for a romantic dinner in the Colorado resort town.
"She has put her recovery on hold for her boyfriend and tells everyone she is 'fine' and is going to meetings and working on her sobriety," warned the source. "She is a loose cannon and her mother is worried sick."
Still, Lovato tried to play up her post-rehab sobriety for fans. Lovato, 26, rang in the New Year with a bottle of non-alcoholic Martinelli's sparkling cider. "I will never take another day in life for granted, even the bad ones," she insisted on social media.
But, as RadarOnline.com previously reported, loved ones are "scared to death" about Lovato associating with her fashion designer boyfriend Levy. "Since she started seeing Henry, she has not been keeping up with her recovery commitments and seems to be falling back into her dangerous old L.A. lifestyle," an insider said.
The insider said Lovato "doesn't understand the severity of her addiction" and thinks fellow rehab vet Levy could lead her to a relapse. "No one in the family trusts her with Henri at all."
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