Insurance fraud and used underwear? Zynex execs allegedly stole $873M — and company allegedly tried to silence media about it

The FBI announced on Wednesday the arrest of two medical device company executives, accusing them of conspiracy to commit fraud and other offenses.

Special agents with the FBI Boston and Denver field offices arrested Thomas Sandgaard and Anna Lucsok, the respective former CEO and former COO of Zynex Inc.

‘This case represents a troubling abuse of patients seeking care, as well as the federal health-care benefit system.’

“The former CEO and COO of Zynex are accused of operating with a single-minded focus, their own financial enrichment,” Ted Docks, the special agent in charge of FBI Boston Division, stated. “Today, we arrested them for allegedly defrauding the government and insurance companies out of hundreds of millions of dollars and using vulnerable patients seeking relief from their pain to do it.”

“Health care fraud should not be a quick and easy way to boost a corporation’s bottom line and fund lavish lifestyles for its executives. It’s a federal crime with serious consequences, and the FBI will continue to work with our partners to bring anyone fleecing the U.S. government to justice,” Docks added.

A press release from the U.S. Attorney’s Office for the District of Rhode Island revealed further details about the federal investigation and the suspects, including that they allegedly collected more than $873 million from 2017 through 2025.

The two allegedly devised a scheme to fraudulently obtain money from the government and private health care patients. They were also accused of defrauding Zynex investors by hiding some of the company’s billings and revenues.

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Photo by Andrew Leyden/Getty Images

Over $600 million of the defrauded funds were for supplies that were improperly and unnecessarily billed, the attorney’s office alleged.

“The indictment alleges that supplies were shipped in excessive volumes, sometimes as large as 32, 64, or 128 electrode pairs per patient each month. Sandgaard and Lucsok used these fraudulent billings, and the revenues derived from them, to fraudulently inflate the company’s financial reporting and drive up the stock price of Zynex,” the attorney’s office wrote.

“They continued these practices despite being notified many times that their billing practices were fraudulent, and even when patients told Zynex to stop sending those supplies because they already had too many,” it added.

One patient submitted a complaint in 2022 to the Better Business Bureau, writing, “[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 $1,100.00 dollars a month and cannot afford much. … 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.”

Another patient told the BBB that they felt the company is “a total SCAM.”

“I received the product and then continued to receive 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,” the individual wrote.

When reporters started investigating Zynex, the company allegedly hired someone to “disrupt the reporters’ personal lives.” This allegedly included signing reporters up for therapy sessions, listing conditions such as erectile dysfunction. In another alleged instance, used women’s underwear was sent to a reporter’s home, addressed to their spouse, with a note outlining the reporter’s claimed “illicit behavior,” seemingly to make the reporter appear unfaithful.

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Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images

Sandgaard, 67, is a Colorado resident and a dual U.S. and Danish citizen. Lucsok, 39, is also a Colorado resident with dual citizenship in the U.S. and Ukraine.

The alleged co-conspirators are facing 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.

The government has attempted to restrain the suspects’ assets, including properties in Colorado and Florida, several bank accounts, a Gulfstream G-IV aircraft, two Porsches, and a few other vehicles.

Zynex and its teams have received numerous awards, including the BBB Torch Award for Marketplace Trust, the Top 50 Healthcare Technology CEOs, and Top 50 Women Leaders in Healthcare Technology, according to the company’s website.

“This case represents a troubling abuse of patients seeking care, as well as the federal health care benefit system,” U.S. Attorney Charles Calenda said. “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, payors, and investors.”

Zynex did not respond to a request for comment.

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