International Intrigue | Virginia | Medicare Fraud

In November 2018, Jeremie Vargas Ramirez and Jordana Lee Arpa created Kynetic Medical Group (NOVA DME), a durable medical equipment supply company that engaged in a healthcare scheme so convoluted it would be used in an international intrigue novel – a plot that entails lies, deception, and even Russian co-conspirators resulting in millions of dollars stolen from the U.S. taxpayer.

Ramirez was the de facto owner of NOVA DME and handled the day-to-day business operations, but it was agreed that Arpa would be named as President and CEO of NOVA DME to conceal from Medicare that Ramirez was NOVA DME’s true owner. On behalf of NOVA DME, Arpa acknowledged and agreed to Medicare’s prohibition on direct solicitation to beneficiaries. Which NOVA DME did, nonetheless, when Ramirez asked Dennis William Karnes, a supposed DME industry expert, to make NOVA DME more profitable. Karnes procured leads from “lead generation” companies in Mexico and Russia and along with Ramirez, filed thousands of Medicare claims knowing the leads weren’t vetted.

Over 500 complaints regarding fraudulent DME orders supplied by NOVA DME were filed from Medicare beneficiaries, by the time Karnes introduced Ramirez to a Russian-based co-conspirator who owned Sharp Ventures. A shell company comprised of similar DME businesses committed to fraud. From approximately February 2022 until December 2023, the Russian co-conspirator submitted claims for Medicare beneficiaries on behalf of NOVA DME. Upon receipt of the fraudulently gained proceeds, Karnes would transfer money on behalf of both companies to avoid suspicions from transactions done by a Russian-based businessperson. Over $9 million in fraudulent claims were reimbursed by Medicare.

On May 28, 2025, Ramirez and Karnes were sentenced to two years in prison and ordered to pay restitution of $2.25 million each.

Excellent job by the Federal Bureau of Investigation in this case.

Today’s Fraud of The Day is based on article “2 Vienna Residents Sentenced In Multi-Million Medicare Fraud Scheme” published by The Patch on May 28, 2025.

Two Vienna residents were among three sentenced in federal court for a scheme involving fraudulent Medicare billing. The scheme involved payments to a Russian-based businessperson.

Prosecutors say Jeremie Vargas Ramirez, 50, of Vienna, Jordana Lee Arpa, 42, of Vienna, and other co-conspirators created Kynetic Medical Group in November 2018. Their business known as NOVA DME was a durable medical equipment supplier and was approved as a Medicare provider in June 2021 based on false statements by Arpa.