PROVIDENCE – Colorado-based Zynex Inc. admits to health care, securities and mail fraud and faces up to $12.5 million in fines, in a nonprosecution agreement the U.S. Attorney’s Office for Rhode Island announced on Tuesday.
“Zynex’s former executives engaged in a scheme that defrauded taxpayer-funded health care programs and deceived investors,” said Roberto Coviello, special agent in charge of the U.S. Department of Health and Human Services, Office of Inspector General.
Thomas Sandgaard, the former CEO of Zynex, and Anna Lucsok, the former chief operating officer, were previously indicted for related conduct and charges. It was not immediately clear on Tuesday whether those charges are still pending.
The medical-device maker admitted to fraudulently obtaining millions of dollars from government and private health care payers and patients by submitting excessive and improper claims for medical devices and supplies.
Prosecutors said Zynex from 2017 to 2025 collected more than $873 million for its products, including more than $600 million for supplies, most of which was the result of fraud.
Zynex will forfeit nearly $100 million in unpaid claims.
The company, which has filed for Chapter 11 bankruptcy protection, will also implement enhanced compliance and security reforms under its new leadership. The bankruptcy court must still approve the deal.