Government seizes close to $5 million from Gate City Transportation and owner

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GREENSBORO, N.C. — The federal government has seized close to $5 million from accounts associated with Gate City Transportation and owner Roderick Jessup, according to documents filed with the U.S. District Court in Greensboro.

The Greensboro company, which has provided non-emergency medical transportation for 15 years, is being investigated by state and federal officials over allegations of Medicaid fraud.

In an affidavit attached to federal seizure warrant applications, IRS agent Richard Dawson alleges Gate City Transportation billed Medicaid more than $19 million between January 2011 and September 2014 for ambulance services when the company “merely provided ‘transportation services,’ as it had no ambulances after the fall of 2010.”

The affidavit notes that Medicaid “does not cover means of transport other than ambulance.”

According to the affidavit, the company also allegedly took patients to medical appointments by van and coded claims “as though basic life support services were conducted, when in fact such services were not conducted.”

Read more: Greensboro News & Record