A Colorado medical device company admitted to orchestrating an elaborate health care fraud scheme that resulted in the overbilling of patients and insurers by hundreds of millions of dollars. Zynex Inc., an Englewood-based company that manufactures and sells medical devices used for pain management and rehabilitation, entered into an agreement Tuesday with the U.S. Department of Justice to avoid prosecution. The company, as part of the deal, agreed to pay between $5 million and $12.5 million in penalties — the final tally will depend on the company’s earnings and profit during the settlement period — and will forfeit millions of dollars in unpaid claims. The company admitted to participating in a conspiracy to commit health care fraud, securities fraud, mail fraud and other violations, the U.S. Attorney’s Office for the District of Rhode Island announced in a news release. The agreement comes a month after a federal grand jury indicted two former top Zynex executives who allegedly spearheaded the years-long scheme. Zynex, in its deal with the government, also admitted to collecting more than $873 million for its products, including more than $600 million for supplies, “the vast majority of which were the result of fraud,” investigators said. Have you used Zynex for medical devices? We want to talk to you. The company acknowledged that it shipped and billed for medically unnecessary supplies in excess quantities and misled investors who were unaware of the fraudulent billing practices. Related Articles Have you used Zynex for medical devices? We want to talk to you. Colorado holds off on capping pay for home caregivers — for now DPS moves to drop Kaiser health insurance after 50 years, prompting internal investigation and union pushback Federal judge orders Trump administration to keep paying Colorado public health grants RFK Jr. promised to restore trust in US health agencies. One year later, it’s eroding Zynex agreed to implement enhanced compliance and corporate governance reforms "designed to prevent future misconduct," the DOJ said, and will cooperate with the government's ongoing investigations. “This resolution addresses the seriousness of the fraud committed by Zynex while recognizing the substantial turnaround in conduct implemented under new management,” U.S. Attorney Charles C. Calenda said in the news release. The company, in a subsequent news release, said the resolution "represents the fulfillment of the commitments we made as a new management team when we arrived in August 2025: to break from the past, rebuild the company as compliant-by-design and create a new future for the company, its customers and employees." Zynex leaders say they have completely overhauled their billing and supply replenishment practices, and enacted new marketing policies to ensure they remain compliant with the FDA. Sign up for our weekly newsletter to get health news sent straight to your inbox. ...read more read less