Former Zynex Employee Alleges Fraud, Executives Face Charges

Two Zynex executives indicted for $873 million fraud scheme, former employee speaks out

Published on Mar. 6, 2026

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A former employee of Colorado-based medical device company Zynex has come forward with allegations of fraud, including overbilling insurance and sending unwanted supplies to patients. The former employee, who asked to remain anonymous, said she witnessed Zynex CEO Thomas Sandgaard and COO Anna Lucsok orchestrating the scheme. Sandgaard and Lucsok have been indicted on multiple fraud charges, while Zynex has reached a non-prosecution agreement with the Department of Justice to pay between $5 million and $12.5 million.

Why it matters

The case highlights concerns about fraud and unethical business practices in the medical device industry, which can have serious consequences for patients and the healthcare system. The former employee's account provides an inside look at the alleged misconduct at Zynex and raises questions about oversight and accountability in the industry.

The details

According to the former employee, Zynex sales representatives were instructed to tell patients they would not pay more than $250 for the company's NexWave pain management devices. However, patients soon began complaining of receiving high bills, often over $800, $1,200, or even $2,000. The employee said the company was overbilling insurance and sending excessive amounts of supplies that patients did not request. When the employee raised concerns, she was told it was a "fluke" and to stop talking to patients and other representatives about the issue. Ultimately, she decided to leave the company, taking a significant financial hit.

  • The former employee worked at Zynex for several years, witnessing the alleged fraud scheme.
  • In March 2026, Sandgaard and Lucsok were indicted on multiple fraud charges.
  • Zynex has reached a non-prosecution agreement with the DOJ to pay between $5 million and $12.5 million.
  • The arraignment for Sandgaard and Lucsok is scheduled for March 30, 2026.

The players

Thomas Sandgaard

The 67-year-old former CEO of Zynex, who has been indicted on multiple fraud charges.

Anna Lucsok

The 39-year-old former COO of Zynex, who has also been indicted on multiple fraud charges.

Zynex

A Colorado-based medical device company that has reached a non-prosecution agreement with the DOJ to pay between $5 million and $12.5 million.

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What they’re saying

“When Thomas is slighted, he goes for blood; he goes after and tries to ruin that person.”

— Former Zynex employee (CBS Colorado)

“Eight hundred dollars, $1,200, $2,000... It was overbilling insurance and sending egregious amounts of supplies, and also, when insurance didn't pay, intimidating patients to get them to pay.”

— Former Zynex employee (CBS Colorado)

“I had doctors saying you lied to me. I'm like, no, I didn't. They lied to me... like they lied to us.”

— Former Zynex employee (CBS Colorado)

What’s next

The arraignment for Sandgaard and Lucsok is scheduled for March 30, 2026, where they will have the opportunity to enter their pleas.

The takeaway

This case highlights the importance of oversight and accountability in the medical device industry, as well as the need for companies to prioritize ethical business practices and patient well-being over profits. The former employee's decision to come forward, despite the personal financial consequences, demonstrates the courage required to expose corporate wrongdoing.