Two former medical device company executives were charged with a near-$900 million fraud scheme in a federal grand jury indictment unsealed Wednesday.

Thomas Sandgaard, 67 of Castle Rock, and Anna Lucsok, 39 of Denver, face nine counts of health care fraud, two counts of mail fraud and three counts of aggravated identity theft, according to a Wednesday news release from the U.S. Department of Justice.

From 2017 through late 2025, the two schemed to acquire millions of dollars from the government as well as private healthcare patients, as well as defraud investors of the medical device company, Zynex, Inc., in which they held the executive roles of CEO and COO, according to the release.

In total, their actions allowed Zynex to collect more than $873 million for its products, including more than $600 million for supplies that were unnecessarily or improperly billed, continuing to send them to patients even if they were not medically necessary, not covered by insurance programs or not requested, according to the release. The two then used the fraudulent billings and collected revenue to drive up Zynex’s stock price.

“This case represents a troubling abuse of patients seeking care, as well as the federal healthcare benefit system,” said U.S. Attorney Charles Calenda in the release. “As alleged, the defendants’ conduct undermined programs intended to serve patients in need.”

Even after they were notified that the practice was fraudulent Sandgaard and Lucsok continued to do it anyway, despite their own employees objecting to it, according to the release. They also received several patient complaints about what they were doing, via the Better Business Bureau:

“(T)hey kept mailing me supplies and I kept getting denials. I called today and was informed that I owe a tremendous amount of money … I live on $1,100.00 dollars a month and cannot (sic) afford much period … she informed me that there still would be a rental fee and supply fees. I told her that I could not even afford food at this point,” one patient said.

When financial reporters scrutinized what Zynex was doing, Sandgaard hired someone to disrupt their personal lives, including signing them up for therapy sessions and listing conditions such as erectile dysfunction, according to the release. They also sent women’s underwear to a reporter’s spouse with a thank you card, detailing alleged “illicit behavior” by the reporter to convince her that her husband was cheating.

Sandgaard is a dual citizen of the U.S. and Denmark, and Lucsok is of the U.S. and Ukraine, according to the release. The U.S. is seeking to restrain Sandgaard’s assets, including a private jet, multiple luxury cars, properties in Colorado and Florida and bank accounts, as well as those of Lucsok, which include other property, cars and accounts.

Several agencies and departments investigated the case, including the FBI, the U.S. Department of Health and Human Services and the Department of Veterans Affairs Office of Inspector General, according to the release. The charges were announced by U.S. Attorney Charles Calenda. and will be prosecuted by First Assistant U.S. Attorney Sara Miron Bloom and Assistant U.S. Attorneys Peter I. Roklan and Milind M. Shah.