ENGLEWOOD, Colo. — Two former executives of Zynex Inc., a medical device company, have been indicted in a multiyear scheme to defraud patients, health care payors, and investors.
Thomas Sandgaard, 67, former CEO of Zynex, and Anna Lucsok, 39, former COO, face federal charges including conspiracy to commit health care fraud, mail fraud, securities fraud, health care fraud, and aggravated identity theft.
The indictment alleges Sandgaard and Lucsok orchestrated a scheme that shipped excessive, unnecessary medical supplies to patients without insurance approval or patient consent and fraudulently billed millions of dollars to health care payors.
Former employees say they witnessed employees pressured to prioritize profit over patient care. Some employees who spoke up about unethical practices were reportedly terminated. One former employee, Anthony Drayton, noted patients received repeated shipments of electrodes and batteries they did not order, resulting in large insurance bills.
The Department of Justice says assets are being seized from Sandgaard and Lucsok, including luxury cars, a private jet, and properties in Colorado and Florida. Both executives were arrested Wednesday by FBI agents in Boston and Denver.
Zynex Medical emphasized that the indicted individuals are no longer employed by the company and that Zynex has cooperated with authorities. The company has not been charged in any criminal or civil matters and has undergone a management overhaul following the indictment.
