Rossi Indicted: COVID-19 Testing Scheme Unravels

PEORIA, Ill. – Aaron Rossi, 40, of Morton, Illinois, is facing a fresh wave of federal charges alleging a brazen scheme to defraud the State of Illinois and multiple health insurance companies during the height of the COVID-19 pandemic. A grand jury indicted Rossi today on six counts of healthcare fraud, one count of mail fraud, and four counts of wire fraud, stemming from his operation of Reditus Laboratories, LLC.

According to the indictment, Reditus Laboratories, located in Pekin, Illinois, was a pathology lab capable of processing PCR tests for COVID-19. Rossi, as CEO, allegedly exploited the increased demand for testing, billing both public and private insurance – including Medicare, Medicaid, Blue Cross Blue Shield of Illinois, Healthlink, and the Health Resources & Services Administration’s Uninsured Program – for services not fully rendered. The scheme, active from October 2020 through at least November 2021, involved mischaracterizing services to inflate payments and directly benefit Rossi financially.

The indictment details a particularly galling element: a contract with the State of Illinois for COVID-19 PCR testing. This was a flat-rate agreement, meaning Reditus was to invoice the state *only* for the difference between insurance payments and the flat rate. Rossi allegedly circumvented this agreement by billing *both* the state and the insurance providers for the same tests, effectively double-dipping and pocketing the excess funds. This double-billing forms the basis of the mail and wire fraud charges.

This isn’t Rossi’s first brush with the law. He previously pleaded guilty on February 6, 2024, to filing false federal tax returns and stealing funds from his former employer, Central Illinois Orthopedic Surgery in Bloomington. He admitted to unauthorized funds transfers and personal purchases delivered to his home. Currently in the custody of the U.S. Marshals Service since September 2023 due to multiple bond violations, Rossi awaits sentencing in that case, scheduled for July 2, 2024. This new indictment alleges *separate* offenses, occurring after the conclusion of the previous case.

If convicted on these new charges, Rossi faces a potentially lengthy prison sentence. Each healthcare fraud count carries a maximum penalty of up to 10 years imprisonment, while each mail and wire fraud count carries a maximum of 20 years. A $250,000 fine is possible for each of the 11 charges, followed by up to 3 years of supervised release per count. The investigation was a joint effort by the United States Postal Inspection Service, the Internal Revenue Service, the Federal Bureau of Investigation—Springfield Division, the Department of Labor—Employee Benefit Security Administration, Office of Personnel Management—Office of Inspector General, and Department of Health and Human Services—Office of Inspector General.

Assistant U.S. Attorneys Douglas F. McMeyer and Tanner K. Jacobs are prosecuting the case. It’s crucial to remember that this indictment is an accusation, and Rossi is presumed innocent until proven guilty in a court of law. Grimy Times will continue to follow this case and report on any developments.