2 Vienna Residents Sentenced In Multi-Million Medicare Fraud Scheme

VIENNA, VA — 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. The agreement included an acknowledgement that the provider could not directly solicit Medicare beneficiaries. Arpa was named president to conceal Ramirez being NOVA DME's true owner.

In early 2021, Ramirez started getting help on leads from Dennis William Karnes, 56, of Lake Elsinore, California, to make NOVA DME more profitable. Karnes helped get leads from foreign co-conspirators, but the leads were for Medicare beneficiaries who did not need or want durable medical equipment. Prosecutors say the conspirators knew the leads were fraudulent but still submitted Medicare reimbursement claims. Medicare denied a claim, Karnes often altered and resubmitted claims.

Around February 2022, Karnes got Ramirez acquainted with a Russian co-conspirator who owned some durable medical equipment companies in the U.S. From January 2022 to June 2024, Karnes transferred money on behalf of the companies to avoid suspicion from transactions done by a Russian-based businessperson. The Russian owners' U.S.-based companies were ultimately closed, due to billing fraud suspicions.

From February 2022 to December 2023, the Russian owner and an associate submitted claims for Medicare recipients on behalf of NOVA DME, and Medicare sent payments for approved claims by check or direct deposit. The co-conspirators directed Karnes how much money to collect for the leads. Prosecutors say the laundering of Medicare fraud funds to the Russian-based businessperson and others outside the U.S. went through a shell company called Sharp Ventures, LLC. Payments ranged from $10,000 to $50,000 per week.

In all, NOVA DME billed Medicare $13,526,920 and received $7,610,462 in reimbursements. Of that, $4,060,000 went to the Russian-based businessperson. Prosecutors beleive Ramirez, and Arpa received at least $2,256,787 in fraudulent Medicare funds, and Karnes received at least $888,500.

Around the same timeframe, Medicare received at least 508 complaints from at least 491 Medicare beneficiaries about NOVA DME. The complaints reported that beneficiaries did not receive the promised services, did not know the provider, returned the items and did not receive a refund, or suspected identity theft. Prosecutors say recipients and their caretakers returned equipment and told Ramirez they did not request it or need it.

Ramirez pleaded guilty on Jan. 31 to conspiracy to commit healthcare fraud. He was sentenced to two years in prison and ordered to pay $2,256,787 in restitution.

Arpa pleaded guilty on Feb. 7 to conspiracy to making false statements relating to healthcare matters. She was sentenced to six months in prison and ordered to pay restitution of $2,256,787.

Karnes pled guilty on Jan. 31 to conspiracy to commit healthcare fraud. He was sentenced to two years in prison and ordered to pay $2,256,787 in restitution.

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