Milwaukee Transport Company Found Guilty of Medicaid Fraud

Milwaukee’s Precious Transit, a medical transport company, was convicted of 18 counts of Medicaid fraud when the owner, Frederick Rutledge, pleaded no contest to the charges. Originally, the case was filed against Mr. Rutledge himself and alleged that he had falsified records related to dozens of medical transport trips and made false claims to the Wisconsin Medicaid program of over $10,000. Later the complaint was amended to substitute the company as the defendant.

Based on Mr. Rutledge’s plea, the company was ordered to pay a $10,000 fine, plus costs. If the fine is not paid within 60 days, it will be converted to a civil judgment.

The Journal Sentinel reported that Precious Transit was founded in 2008 with only three vans and approximately 50 clients. The company quickly grew to a fleet of eleven vans and approximately 500 clients, doing business in Milwaukee and Madison.

Some of Precious Transit’s drivers had not been certified for Medicaid reimbursement. These drivers were directed to leave blank the driver’s section of the trip tickets. Then Rutledge or other drivers who were certified for Medicaid reimbursement would complete the forms, fraudulently listing themselves as the drivers. In addition, Precious Transport drivers regularly overstated the mileage on their trips.

Waters & Kraus is a national firm with highly skilled lawyers practicing qui tam litigation in four offices, including Dallas, Los Angeles, San Francisco, and Baltimore. Our attorneys have decades of experience successfully representing whistleblowers in a variety of fraud cases. Contact us or call our attorneys at 800.226.9880 to learn more about our practice and how we can assist.

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