Aaron Rossi, COVID-19 Testing Fraud, Illinois 2023

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Aaron Rossi Charged with $250K COVID-19 Testing Fraud, Peoria IL, 2023

Illinois man Aaron Rossi, 40, of Morton, faces 11 federal charges for allegedly defrauding the State of Illinois and public and private health insurance companies out of hundreds of thousands of dollars during the COVID-19 pandemic.

According to a federal indictment, Reditus Laboratories, LLC, a pathology laboratory based in Pekin, Illinois, processed COVID-19 PCR tests paid for by public and private health insurance programs, including Medicare, Medicaid, Blue Cross Blue Shield of Illinois, Healthlink, and the Health Resources & Services Administration’s Uninsured Program.

Beginning in October 2020 and continuing until at least November 2021, Rossi allegedly established policies and procedures at Reditus that benefited himself financially and defrauded healthcare providers. The services provided were mischaracterized to receive payment for services not actually rendered, resulting in six counts of healthcare fraud.

Rossi and Reditus had a contract with the State of Illinois to provide COVID-19 PCR testing. However, the CEO allegedly developed a scheme to bill both the healthcare providers and the State, resulting in Reditus receiving double payments for the same tests, one from the State and one from another health insurance provider. This conduct led to one count of mail fraud and four counts of wire fraud.

Rossi has been in the custody of the U.S. Marshals Service since September 2023, pending sentencing in a separate case where he pleaded guilty to charges of filing false federal tax returns and taking funds from his former employer, Central Illinois Orthopedic Surgery in Bloomington.

If convicted, Rossi faces up to 10 years imprisonment for each of the healthcare fraud charges and up to 20 years imprisonment for each of the mail fraud and wire fraud charges. Each count could also incur a $250,000 fine, followed by 3 years of supervised release.