Attorney General James Announces Indictment of Orange County Transportation Company for Stealing Over $2.3 Million from Medicaid

NEW YORK – New York Attorney General Letitia James today announced the arrests and indictments of Daler Yuldashev and Damir Yuldashev, their company DYD Universe, Inc. (DYD), and Nigina Iskandarova for their roles in a scheme that stole over $2.3 million from Medicaid and paid illegal kickbacks to Medicaid recipients. Daler and Damir Yuldashev operated DYD as a medical transportation provider and used it to overcharge Medicaid millions of dollars in fees by billing for fake trips and adding fake tolls to the rides they did provide. Along with Iskandarova, they also illegally paid kickbacks to Medicaid recipients to recruit more customers.

“Medical transportation providers are an essential service for New Yorkers who lack the resources to travel to receive care,” said Attorney General James. “These individuals abused our health care system and stole millions of taxpayer dollars meant to provide care for New Yorkers in need. Taking advantage of Medicaid recipients is reprehensible, and my office will always ensure those who attempt to illegally profit from health care fraud face justice.”

Medicaid recipients who lack access to transportation can use approved transportation providers to travel to and from covered medical services. These providers receive reimbursements from Medicaid for the rides they provide. From April 2018 to March 2023, Daler and Damir Yuldashev billed Medicaid for fictitious trips and added fake tolls to their trips to inflate their costs. DYD’s claims often added toll charges of $15 to as much as $50 when the journey did not incur any toll at all. As a result of their scheme, DYD allegedly illegally overcharged Medicaid over $2.3 million.

Daler and Damir Yuldashev, along with Nigina Iskandarova, also allegedly made kickback payments to Medicaid recipients to recruit passengers in order to bill for more rides. These payments were illegal and undermined the businesses of other transportation providers in the Hudson Valley. Some passengers were paid thousands of dollars each to take rides that allowed DYD to collect tens of thousands of dollars in fees per passenger.

Daler and Damir Yuldashev, who were arrested on July 2, were charged with Grand Larceny in the First Degree, two counts of Health Care Fraud in the Second Degree, five counts of Medical Assistance Provider Prohibited Practices, and six counts of Offering a False Instrument for Filing in the First Degree. Nigina Iskandarova was also arrested on July 2 and charged with four counts of Medical Assistance Provider Prohibited Practices. The Grand Larceny charge carries a maximum sentence of up to 25 years in state prison and the kickback charges against Iskandarova carry a maximum sentence of up to four years in state prison.

The charges filed in this case are accusations. The defendants are presumed innocent until proven guilty in a court of law.

This matter was investigated by Detectives Peter Olsen and Frank Bluszcz with assistance from Supervising Detective Jeffrey Pittswith. Financial analysis conducted by Principal Auditor-Investigators John Annunziata, Lora Pomponio, and Melissa Stoebling, and Senior Auditor-Investigator Christopher Giacoia. 

The criminal case was presented by Special Assistant Attorneys General Eva Urrutia and Robert Trudell, and the Attorney General’s Medicaid Fraud Control Unit (MFCU) Regional Director Todd Pettigrew, with assistance from MFCU Chief of Criminal Investigations Thomas O’Hanlon. MFCU is led by Director Amy Held and Assistant Deputy Attorney General Paul J. Mahoney. The Division of Criminal Justice is led by Chief Deputy Attorney General José Maldonado under the oversight of First Deputy Attorney General Jennifer Levy.

Reporting Medicaid Provider Fraud: MFCU defends the public by addressing Medicaid provider fraud and protecting nursing home residents from abuse and neglect. If an individual believes they have information about Medicaid provider fraud or about an incident of abuse or neglect of a nursing home resident, they can file a confidential complaint online or call the MFCU hotline at (800) 771-7755. If the situation is an emergency, please call 911.

MFCU’s total funding for federal fiscal year (FY) 2024 is $68,997,928. Of that total, 75 percent, or $51,748,448, is awarded under a grant from the U.S. Department of Health and Human Services. The remaining 25 percent, totaling $17,249,480 for FY 2024, is funded by New York State.