Gate City Transportation accused of $19M+ in fraudulent Medicare, Medicaid claims

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GREENSBORO, N.C. - A Greensboro transportation service for people with disabilities is under state and federal investigation, accused of millions of dollars of fraudulent Medicaid and Medicare claims.

Gate City Transportation is owned and operated by Roderick D. Jessup, named in a federal affidavit and warrant application. According to its website, the company has been around for sixteen years and serves patients in wheelchairs or with special needs.

Those documents say “the fraudulent claims were submitted to the NC Medicaid program for ambulance services in excess of $19,000,000 when GCT merely provided ‘transportation services’ as it had no ambulances after the fall of 2010.”

In addition, the documents said based on interviews and analysis of Medicare billing, “fraudulent Medicare claims submitted to the Medicare program for ambulance services in the amount of $2,513.96.”

Monday, state and federal agents were at the business at 620 S. Elm St. seizing property and having dozens of vans and vehicles searched and towed.

“That makes me mad because that's our Medicaid funds,” said Melody Kimbrell, a Gate City Transportation user.

The company has been closed for at least two weeks and that’s about how long Kimbrell has been trying to reach the company she’s used for 8 years to make medical appointments.

“I've had to cancel appointments. I was supposed to have kidney stone surgery back in February and I couldn't get a hold of them and I had to postpone it because I couldn't find anybody to take me,” said Kimbrell.

Kimbrell calls the employees at Gate City friends and said she feels for them.

“I don't know what they're going to do,” said Kimbrell.

One employee, who didn’t want to be identified, said the company led employees to believe the problem leading to the shutdown was temporary.

She said watching the vans being seized by the government Monday was hard to watch.

“It's a little too hard for us we're losing out on everything,” said the employee.

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