Two former executives at a Colorado-based medical device company have been charged in connection with orchestrating an alleged health care fraud scheme that federal prosecutors say raked in more than $800 million.<\/p>\n
A federal grand jury in Rhode Island indicted Thomas Sandgaard, 67, a Castle Rock resident, and Anna Lucsok, 39, a Denver resident, with conspiracy to commit health care fraud, securities fraud and mail fraud, among other violations, the U.S. Attorney\u2019s Office announced Wednesday<\/a>.<\/p>\n The pair served as the chief executive officer and chief operating officer of Englewood-based Zynex Inc., respectively, a company that manufactures and sells medical devices used for pain management and rehabilitation.<\/p>\n From 2017 through 2025, Sandgaard and Lucsok \u201corchestrated a scheme to fraudulently obtain millions of dollars from government and private health care payors and patients, and to defraud investors in Zynex by concealing that the company\u2019s billings and revenues were driven by fraud,\u201d according to the indictment.<\/p>\n The Colorado executives collected more than $873 million for its products, including more than $600 million for supplies, investigators said. The company shipped patients excessive volumes of devices each month, using these fraudulent billings to artificially inflate the company\u2019s financial reporting and its stock price, the government alleged.<\/p>\n When financial journalists began asking questions about Zynex\u2019s business practices, Sandgaard hired someone to disrupt the reporters\u2019 lives, the indictment states. These efforts included signing up reporters for therapy sessions and stating that they suffered from erectile dysfunction, and sending female underwear to a reporter\u2019s spouse with a thank-you card.<\/p>\n Zynex filed for Chapter 11 bankruptcy protection in December. The company listed more than $45 million in assets and more than $86 million in total debts.<\/p>\n The company, in a statement Thursday, said the board of directors removed Sandgaard as director and chair of the board following the indictment and has worked with the Department of Justice and other regulators on the resolution of ongoing investigations.<\/p>\n Over the past six months, Zynex has executed a \u201ccomplete overhaul of its leadership, compliance program, billing practices and operational controls,\u201d said John Bibb, the company\u2019s chief legal officer. \u201cUnder entirely new leadership, we have delivered on our commitment to the highest integrity in our business practices and implemented rigorous compliance oversight.\u201d<\/p>\n Sandgaard, a dual citizen of the United States and Denmark, previously owned the southeast London football club Charlton Athletic. He also owns a professional hockey team in Denmark, according to his LinkedIn page<\/a>.<\/p>\n Lucsok is a dual citizen of the United States and Ukraine, according to prosecutors.<\/p>\n