Former Colorado medical executives charged in $873M health care fraud scheme

Two former top executives of a medical company in Colorado are facing a federal indictment for allegedly orchestrating an $873 million healthcare fraud scheme, the U.S. Attorney’s Office for the District of Rhode Island announced.

Thomas Sandgaard, the 67-year-old former CEO of Zynex, Inc., along with Anna Lucsok, the company’s 39-year-old ex-chief operating officer, have been charged with multiple counts, including conspiracy to commit health care, mail, and securities fraud.

Prosecutors claim that between 2017 and 2025, Sandgaard and Lucsok devised a fraudulent scheme to overbill government and private insurers, raking in over $873 million, with a significant portion of that being from unnecessary supplies totaling $600 million.

According to authorities, the two executives allegedly funneled these ill-gotten gains back into the company to inflate Zynex’s financial performance and elevate its stock price illegally. These actions ultimately resulted in financial gains for the individuals involved at the expense of healthcare benefit programs and unsuspecting patients.

U.S. Attorney Charles C. Calenda expressed concern over the abuse of patients seeking care and the systemic exploitation of federal healthcare programs. He emphasized the necessity of upholding the integrity of these schemes and holding accountable those who seek to exploit patients, payors, and investors alike.

The grand jury indictment also accuses Sandgaard of maliciously targeting financial reporters by attempting to disrupt their personal lives, including sending used undergarments to a reporter’s spouse.

As a response to these charges, federal authorities have initiated asset seizure proceedings against both Sandgaard and Lucsok. These assets could potentially include luxury vehicles, real estate properties, bank accounts, and even a Gulfstream jet.

The severity of these allegations underscores the impact of financial malfeasance in the healthcare sector and emphasizes the importance of transparency, accountability, and ethical business practices within the industry. Furthermore, it serves as a cautionary tale about the consequences of pursuing unlawful gains at the expense of vulnerable patients and healthcare systems.

It is crucial for organizations and individuals operating within the healthcare space to adhere to strict ethical guidelines and exercise transparency and integrity in their business dealings to avoid falling into the trap of fraudulent activities that can lead to severe legal repercussions and reputational damage.