A Danish-American businessman with ties to British football and Danish ice hockey has been arrested by the FBI and charged with orchestrating a massive healthcare fraud scheme worth hundreds of millions of dollars through his medical equipment company.
Thomas Sandgaard, the founder and former CEO of Zynex Inc., sits in custody in the United States facing 15 criminal charges. The allegations center on his Colorado-based medical device company, which authorities say fraudulently billed government programs and private insurers for over $600 million in unnecessary medical supplies between 2017 and 2025.
FBI Arrests Former Medical Device Executive
FBI agents from Boston and Denver apprehended Sandgaard and his former second-in-command after a grand jury in Rhode Island formally indicted them last week. The indictment had remained sealed until the arrests were carried out.
According to the U.S. Department of Justice, Sandgaard allegedly orchestrated a scheme to fraudulently obtain millions of dollars from public and private healthcare payers and patients. The indictment also accuses him of deceiving Zynex investors by concealing that the company’s billing practices and revenues were driven by fraud.
The case involves serious charges that could result in multiple years in prison if convicted. A grand jury indictment signals that prosecutors believe they have substantial evidence to pursue the case.
Medical Device Company Under Scrutiny
Zynex manufactures equipment for pain management and rehabilitation, including small electrotherapy devices that patients use at home. Sandgaard founded the company in 1996 in Englewood, Colorado, and it later became publicly traded on the Nasdaq stock exchange in 2019.
At its peak between 2020 and 2024, the company held a market value exceeding three billion Danish kroner. However, authorities allege that this success was built on fraudulent practices.
According to prosecutors, Zynex billed approximately 873 million dollars during the fraud period. Of this amount, more than 600 million allegedly came from supplies that were medically unnecessary or incorrectly billed. The company reportedly sent enormous quantities of medical equipment and supplies to customers without proper authorization or insurance coverage.
From Sports Ownership to Criminal Charges
Sandgaard became known to Danish audiences through his sports investments. In 2020, he purchased the British football club Charlton for approximately 400 million kroner, according to British media reports. At the time, he expressed confidence in the club’s economic potential.
In Denmark, he acquired a majority stake in the ice hockey club Odense Bulldogs in 2021, which he still owns according to official records. Despite his optimistic projections for Charlton, he sold the club three years later while it remained in England’s third tier.
Company Value Collapses
The businessman’s fortunes took a dramatic turn as Zynex’s market value plummeted. In December, the company entered Chapter 11 bankruptcy protection, a process where a court oversees efforts to save the business. This typically means investor money is lost.
Alleged Harassment of Journalists
The indictment includes additional troubling allegations beyond healthcare fraud. According to charging documents, when financial journalists began investigating Zynex’s business practices, Sandgaard allegedly took aggressive countermeasures.
Prosecutors claim he hired someone to harass the journalists, including signing them up for therapy sessions without their knowledge. In one particularly bizarre incident, used women’s underwear was allegedly sent to a journalist’s spouse, accompanied by a thank-you card addressed to the journalist.
These allegations paint a picture of someone willing to go to extreme lengths to silence critics and protect his business interests. Naturally, such actions only drew more scrutiny from law enforcement.
Asset Seizures and Company Response
U.S. authorities are seeking to seize multiple assets from Sandgaard, including two luxury vehicles, properties in Colorado and Florida, and a small private airplane. The asset forfeiture efforts suggest prosecutors are preparing for a lengthy legal battle.
Zynex has distanced itself from its former executives. In a press statement, the company acknowledged the arrests and emphasized that both individuals no longer work there. The company’s legal chief stated that Zynex has undergone complete management restructuring over the past six months.
The company claims to have implemented comprehensive compliance programs, reformed billing practices, and established operational controls under entirely new leadership. Whether these changes came too late remains to be seen.
What Happens Next
Sandgaard now faces a complex legal situation in the American justice system. The charges include healthcare fraud, securities fraud, and related offenses. Given the scale of the alleged fraud and the involvement of federal programs, prosecutors are likely to pursue the case aggressively.
It was not possible to reach Sandgaard for comment, and court documents do not identify his attorney. As the case moves forward, more details about the alleged fraud scheme may emerge through pretrial proceedings and potentially a trial.
The FBI agent from Boston who announced the arrests emphasized that the case involves exploitation of vulnerable patients seeking pain relief. Interestingly, this human element distinguishes the case from purely financial crimes, as real people allegedly suffered while seeking medical treatment.
Sources and References
The Danish Dream: Danish Businesses Alarmed by Growing Trade War Risk
The Danish Dream: Banking in Denmark for Foreigners Updated 2025
DR: Dansk rigmand anholdt af FBI: Tiltalt i gigantisk svindelsag
