Zynex, Inc., a Colorado-based medical device manufacturer, has publicly addressed the recent federal indictments of its former Chief Executive Officer, Thomas Sandgaard, and former Chief Commercial Officer, Anna Lucsok. The two ex-executives face charges including conspiracy to commit health care fraud, securities fraud, and mail fraud. The indictment alleges that from 2017 through late 2025, Sandgaard and Lucsok orchestrated a scheme to fraudulently obtain millions of dollars from government and private health care payors and patients, and to defraud investors by concealing that the company’s billings and revenues were driven by fraud. ([oig.hhs.gov](https://oig.hhs.gov/fraud/enforcement/former-zynex-inc-executives-charged-with-health-care-and-securities-fraud-and-related-offenses/?utm_source=openai))
In response, Zynex’s Chief Legal Officer, John Bibb, stated that the individuals named in the indictment are no longer employed by Zynex and play no role in the company’s current operations. Following the indictment, the Board of Directors removed Thomas Sandgaard as director and Chair of the Board. Bibb emphasized that over the last six months, Zynex has executed a complete overhaul of its leadership, compliance program, billing practices, and operational controls. Under entirely new leadership, the company has delivered on its commitment to the highest integrity in its business practices and implemented rigorous compliance oversight. ([zynexmed.investorroom.com](https://zynexmed.investorroom.com/2026-01-22-New-Zynex-Leadership-Responds-to-Indictment-of-Former-Executives?utm_source=openai))
The indictment alleges that Sandgaard and Lucsok 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 patients. This scheme reportedly generated more than $873 million in revenue for Zynex, including over $600 million for supplies. The vast majority of the supplies’ billings were unnecessary and improperly billed. The indictment further alleges that supplies were shipped in excessive volumes, sometimes as large as 32, 64, or 128 electrode pairs per patient each month. ([oig.hhs.gov](https://oig.hhs.gov/fraud/enforcement/former-zynex-inc-executives-charged-with-health-care-and-securities-fraud-and-related-offenses/?utm_source=openai))
In addition to the criminal charges, Zynex has faced civil litigation. In September 2025, Allstate filed a federal lawsuit accusing the company and its executives of orchestrating a $3 million insurance fraud scheme involving allegedly false bills and paperwork for durable medical equipment that the insurer claimed was either not provided or not medically necessary. ([insurancebusinessmag.com](https://www.insurancebusinessmag.com/us/news/claims/allstate-accuses-zynex-of-masterminding-3-million-insurance-fraud-scheme-548809.aspx?utm_source=openai)) Furthermore, a class-action lawsuit was filed against Zynex in March 2025, alleging that the company and certain of its top executives misled investors by overstating revenue through the practice of shipping excessive and unnecessary supplies to patients. ([globenewswire.com](https://www.globenewswire.com/news-release/2025/05/14/3081630/32716/en/Investor-Lawsuit-Accuses-Medical-Device-Maker-Zynex-ZYXI-of-Inflating-Revenue-Through-Excessive-Shipments-Subsequent-Earnings-Report-Reveals-Significant-Financial-Strain-Hagens-Ber.html?utm_source=openai))
Zynex has cooperated extensively with the Department of Justice and other regulators and continues to seek a long-term resolution of ongoing investigations while the company is currently reorganizing under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. Bibb concluded that as the company creates a new future, it is committed to building trust through transparency, integrity, and compliance while fulfilling its mission to improve the quality of life for patients suffering from debilitating pain and other conditions. ([zynexmed.investorroom.com](https://zynexmed.investorroom.com/2026-01-22-New-Zynex-Leadership-Responds-to-Indictment-of-Former-Executives?utm_source=openai))