Zynex, Inc., a medical device company based in Colorado, has agreed to a non-prosecution agreement with the U.S. Attorney’s Office for the District of Rhode Island. The company admitted to participating in a conspiracy involving health care fraud, securities fraud, mail fraud, and other violations. The announcement was made by United States Attorney Charles C. Calenda.
The agreement requires Zynex to pay between $5 million and $12.5 million, depending on its earnings and profit during the period covered by the agreement. Approval from the bankruptcy court is pending due to Zynex’s ongoing Chapter 11 proceedings. Additionally, Zynex will forfeit all unpaid claims submitted before September 1, 2025, including those filed during a suspension of TRICARE payments. These forfeited claims amount to more than $85 million billed to TRICARE and over $13 million billed to other payors and patients.
In the statement of facts included in the agreement, Zynex acknowledged that it obtained millions of dollars from government and private health care payors and patients through excessive and improper claims for medical devices and supplies. The company collected more than $873 million for its products during the relevant period—over $600 million was for supplies, most of which resulted from fraudulent activities. Zynex also shipped medically unnecessary supplies in large quantities—sometimes up to 128 electrode pairs per patient each month—and misled investors about its revenue sources.
As part of resolving these issues, Zynex has agreed to implement enhanced compliance measures and corporate governance reforms aimed at preventing future misconduct under new leadership. The company also committed to full cooperation with ongoing government investigations.
United States Attorney Charles C. Calenda stated: “This resolution addresses the seriousness of the fraud committed by Zynex while recognizing the substantial turnaround in conduct implemented under new management. It also demonstrates that when new management confronts the fraudulent conduct, reforms its practices, and fully cooperates, the Government will take those actions into account in reaching an appropriate resolution.”
Former CEO Thomas Sandgaard and former Chief Operating Officer Anna Lucsok were previously indicted on related charges. They appeared in federal court on January 21, 2026; Lucsok was released with electronic monitoring while Sandgaard was ordered detained on January 26.
Amanda Koldjeski, Acting Special Agent in Charge of FBI Denver said: “The FBI remains steadfast in uncovering and deterring fraud against our health care system… In order to maintain the integrity of our health care system, the FBI will hold any individual or entity engaging in health care fraud responsible for their conduct.”
Chad Gosch from DCIS Southwest Field Office commented: “As the law enforcement arm of the Department of Defense’s Office of Inspector General… These efforts reaffirm our unwavering dedication to protecting the DoD community, its resources, and programs that are essential to military readiness.”
Anthony Heddell with VA OIG Western Field Office added: “This agreement reinforces the Veterans Affairs Office of Inspector General’s commitment to protecting the integrity of VA’s health care programs and preserving taxpayer funds…”
Roberto Coviello from HHS OIG said: “Zynex’s former executives engaged in a scheme that defrauded taxpayer-funded health care programs and deceived investors… This outcome makes clear that corporate fraud against federal health care programs will be detected and met with decisive action…”
The prosecution team includes First Assistant United States Attorney Sara Miron Bloom as well as Assistant United States Attorneys Peter I. Roklan and Milind Shah.
Multiple agencies contributed to investigating this case including field offices from both Denver and Boston branches of FBI; inspector general offices from Health & Human Services; Department of Defense; Veterans Affairs; Personnel Management; Postal Service; as well as Food & Drug Administration’s criminal division. Support was provided by organizations such as Defense Contract Audit Agency, Securities & Exchange Commission, along with National Insurance Crime Bureau – Northeast Region.
