Zynex Medical Executives Indicted: Fraud Charges

PROVIDENCE, R.I. – A federal grand jury in Rhode Island has indicted two former executives of Zynex Medical, alleging a multi-million dollar healthcare fraud scheme that spanned nearly a decade.The indictment, revealed this week, accuses the former leaders of defrauding insurers and patients alike.

Executives Accused of Years-Long Fraud

the charges stem from alleged fraudulent activity between 2017 and 2025.

• Former CEO Thomas Sandgaard and COO anna Lucsok are named in the indictment.
• The alleged fraud involved securing millions from government and commercial insurers,as well as directly from patients.
• Prosecutors also claim the executives misled investors about the source of the company’s revenue.

According to the indictment, thomas Sandgaard, the former Chief Executive Officer, and Anna lucsok, the former Chief Operating Officer, fraudulently obtained millions of dollars. This alleged scheme targeted both government and commercial insurers, and directly impacted patients. The jury further alleges that Sandgaard and Lucsok deceived investors by concealing the fraudulent origins of Zynex Medical’s revenue.

Did you know? – Healthcare fraud is a federal crime punishable by important fines and imprisonment. Penalties vary based on the amount of money involved and the intent of the perpetrator.

Why did this happen? Prosecutors allege that Thomas sandgaard and Anna Lucsok orchestrated a scheme to inflate Zynex Medical’s revenue through fraudulent billing practices.Who was involved? The indictment names sandgaard, the former CEO, and Lucsok, the former COO, as the primary actors. What was the nature of the fraud? The scheme involved falsely billing government and commercial insurers, and also directly charging patients for services not rendered or at inflated rates. The indictment further claims they misled investors about the true source of the company’s income.

“This case represents a troubling abuse of patients seeking care,as well as the federal healthcare benefit system,” stated united States Attorney Charles Calenda.The statement underscores the seriousness of the allegations and the potential harm to those who relied on Zynex Medical’s services.

Pro tip – Patients should carefully review their medical bills and insurance statements for any discrepancies. Reporting suspicious charges can help combat healthcare fraud.

The indictment details a scheme to fraudulently secure millions of dollars from insurers and patients, while simultaneously misleading investors about the company’s financial health. healthcare fraud not only drains valuable resources from the system but also erodes trust in medical providers and insurers. It can lead to higher premiums and reduced access to care for everyone.

How did it end? As of this report,the case is ongoing. Sandgaard and Lucsok have not yet entered pleas. the indictment serves as the initial step in a legal process that coudl result in criminal convictions and financial penalties. The indictment marks a significant growth in the ongoing scrutiny of pain management device companies and their billing practices. Further details of the case are expected to emerge as the legal proceedings unfold.