Colorado company Zynex admits to collecting money on equipment patients didn't order

Colorado company Zynex has admitted it scammed people out of millions of dollars. As part of a deal with the U.S. Attorney's Office, the company that makes electrotherapy devices for pain management, admits to sending patients hundreds of dollars in equipment they never ordered. 

Then, according to court documents, Zynex would collect more than $873 million for the products delivered. 

The company, based in Englewood, will have to pay between $5 million and $12.5 million, depending on earnings, and forfeit nearly $100 million from those fraudulent sales. 

A federal grand jury indicted former CEO Thomas Sandgaard, of Castle Rock, and former COO Anna Lucsok, of Denver, on multiple counts of fraud last month. The indictment alleges they orchestrated a fraud scheme to obtain millions of dollars from health care payors and patients and defraud investors.  

It alleges they did this by routinely shipping excessive and unnecessary medical supplies to patients, which were not covered by insurance or agreed to by patients, and fraudulently billing millions of dollars for those supplies.    

They are set to appear in court next month. 

A Zynex Medical spokesperson told CBS Colorado that Sandgaard retired as CEO in August 2025 and Lucsok resigned in October 2025.