Two former executives of a Colorado medical device company have been indicted with multiple counts of fraud, after a federal grand jury alleged they obtained millions of dollars from the government, private health care payers and patients, then used those revenues to defraud investors.
A Rhode Island grand jury unsealed the indictment Wednesday, charging Zynex Inc. founder and former CEO Thomas Sandgaard, 67, of Castle Rock, and former Chief Commercial Officer Anna Lucsok, 39, of Denver.
They face one count of conspiracy to commit health care fraud, mail fraud, and securities fraud; nine counts of health care fraud, two counts of mail fraud and three counts of aggravated identity theft.
Prosecutors allege that from 2017 to 2025, Sandgaard and Lucsok submitted fraudulent billings for medical devices and supplies that were not medically necessary, not covered by insurance programs or not agreed to by patients.
The U.S. Attorney’s Office for the District of Rhode Island said the scheme generated more than $873 million in revenue for Zynex, including more than $600 million for supplies.
According to the indictment, the defendants used those revenues to inflate the company’s financial reporting and drive up Zynex’s stock price, misleading investors about the company’s performance.
In September, Allstate filed a federal lawsuit accusing Zynex and its executives of orchestrating a $3 million insurance fraud scheme involving allegedly false bills and paperwork for durable medical equipment that the insurer said was either not provided or not medically necessary.
Prosecutors allege Sandgaard and Lucsok continued the fraudulent practices despite objections from employees and patient complaints to Zynex and the Better Business Bureau.
According to the U.S. Justice Department, here are some of the complaints:
- 1/11/2022: [T]hey kept mailing me supplies and I kept getting denials. I called today and was informed that I owe a tremendous amount of money…. I live on $1100.00 dollars a month and cannot [sic] afford much period. …. She informed me that there still would be a rental fee and supply fees. I told her that I could not even afford food at this point.
- 1/24/2023: I received the product and then continued to receive [sic] batteries and electrodes. AFTER NINE MONTHS I received a bill with 27 charges for supplies. This was the first bill I ever received, they just kept racking up the charges and they waited nine months to send the bill. The minute I received it, I called the company, and they were unable to connect me with the billing department, we set-up a call back – still waiting. I feel like this company is a total SCAM.
“This case represents a troubling abuse of patients seeking care, as well as the federal health care benefit system,” said U.S. Attorney Charles C. Calenda. “As alleged, the defendants’ conduct undermined programs intended to serve patients in need. Our office remains committed to protecting the integrity of these programs and holding accountable those who seek to exploit patients, payers and investors.”
The indictment also accuses Sandgaard of going to extreme lengths to retaliate against reporters who raised questions about the company’s business practices. That included signing up reporters for therapy sessions and listing conditions such as erectile dysfunction. They also sent women’s underwear to a reporter’s house, apparently to convince the reporter’s spouse of infidelity.
Authorities have seized assets from Sandgaard and Lucsok. That included two Porsches and other luxury vehicles, properties in Colorado and Florida, bank accounts and a Gulfstream G-IV jet.
