Two executives at Zynex, Inc. – a medical device company focused in non-invasive devices for pain, rehab, and patient monitoring – have been charged by the Department of Justice (DOJ) for an alleged scheme that fraudulently obtained millions of dollars from government and private health care payors and patients.
The DOJ indictment alleges that from 2017-2025, CEO Thomas Sandgaard and COO Anna Lucsok orchestrated a scheme that caused Zynex to submit millions of dollars in fraudulent billings for medical devices and supplies that were not medically necessary, not covered by insurance programs and not agreed to by the patients.
These practices continued 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.
Zynex is estimated to have collected more than $873 million for its products, including more than $600 million for supplies. The vast majority of the supplies’ billings were unnecessary and improperly billed. The indictment alleges that supplies were shipped in excessive volumes, sometimes as large as 32, 64, or 128 electrode pairs per patient each month.
The indictment includes charges for securities fraud, as Zynex’s reported revenues were inflated by these fraudulent bills to drive up stock prices. Additionally, when financial reporters raised questions about Zynex’s business practices, various instances of harassment were carried out against those reporters. Situations like this serve as a reminder of how essential transparency and strong governance are across the healthcare landscape. Clear, evidence‑based safeguards around treatment authorization and billing help ensure patients receive care that truly supports recovery, while reinforcing trust across the systems we all rely on.
