Erie County sues Buffalo Homecare to recoup $700k in overcharges

BUFFALO, N.Y. (WIVB) – Erie County officials allege in a lawsuit that they found more than $700,000 in billing irregularities in a contract with Buffalo Homecare Inc. during the height of the Covid-19 pandemic.

The lawsuit, filed in Erie County Supreme Court, states the county health department received a whistleblower complaint alleging billing irregularities for services provided by Buffalo Homecare through the schools grant. The county is also suing Igor Yuzbashev, the company’s CEO.

Buffalo Homecare’s scope of work included the collection of Covid-19 specimens on students and staff in all grades.

The health department determined that more than 1,700 billable hours were invoiced to the grant that were not in the company’s own time sheets for a period beginning Nov. 1, 2021, through Jan. 16, 2022.

As a result, county health officials requested an audit of the contract by the Erie County Comptroller’s Office, which was completed in September 2022.

State declines ECMC grant request for psychiatric program projects

The comptroller’s audit determined the county should reject at least $578,821 in billed hours because the company “failed to provide documents to validate” the invoice.

Buffalo Homecare was required to submit vouchers to Health Research Inc. for reimbursement of payments made to the company due to the grant funding.

Health Research conducted its own audit, which found Buffalo Homecare’s claimed costs exceeded the allowable supported expenses by $731,207.

The lawsuit accuses the company of submitting false records, fraud, breach of contract, among other allegations.

Yuzbashev denied the allegations, according to an article in The Buffalo News. He told the News that he has the paperwork to support the billed hours, despite the county’s allegations that those records did not match up with the invoices.

Latest Local News

Bills again call for shoveling volunteers ahead of Chiefs game

Updated snow totals: Hardest-hit Buffalo suburbs slammed with 5-6 feet this week

Erie County sues Buffalo Homecare to recoup $700k in overcharges

Buffalo to begin street-by-street snow removal operation Thursday; vehicles may be towed

Bills Mafia co-founder Del Reid up for NFL Fan of the Year

Dan Telvock is an award-winning investigative producer and reporter who has been part of the News 4 team since 2018. See more of his work here and follow him on Twitter.

For the latest news, weather, sports, and streaming video, head to News 4 Buffalo.