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Home » News » Crime » COVID Lab CEO Indicted for Lucrative Fraud Scheme
Crime

COVID Lab CEO Indicted for Lucrative Fraud Scheme

Steve RobinsonBy Steve RobinsonJune 21, 2024Updated:June 21, 20241 Comment2 Mins Read
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Aaron Rossi cuts the ribbon on an expansion of his laboratory business.
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A Morton, Illinois man has been indicted on multiple fraud charges for allegedly defrauding health insurance companies and the State of Illinois out of hundreds of thousands of dollars during the COVID-19 pandemic, according to the Department of Justice.

Aaron Rossi, 40, faces six counts of healthcare fraud, one count of mail fraud, and four counts of wire fraud — all part of an elaborate conspiracy to enrich himself by taking advantage of the COVID-19 scare.

Rossi, the CEO of Reditus Laboratories in Pekin, Illinois, is accused of establishing policies that financially benefited himself and defrauded healthcare providers from October 2020 to November 2021. The indictment states that Rossi mischaracterized services provided by Reditus, a full-service pathology laboratory, to receive payments for services not rendered.

Reditus Laboratories, which offered PCR tests for infectious diseases including COVID-19, processed tests paid for by both public and private health insurance programs such as Medicare, Medicaid, Blue Cross Blue Shield of Illinois, Healthlink, and the Health Resources & Services Administration’s Uninsured Program.

Rossi is also charged with developing a scheme to bill both healthcare providers and the State of Illinois for COVID-19 PCR tests, resulting in double payments for the same tests. This alleged conduct forms the basis for the mail and wire fraud charges.

The DOJ’s statement reveals that Rossi signed a contract with the State to provide COVID-19 PCR testing, stipulating that Reditus could only invoice the State for the difference between a patient’s healthcare coverage and the agreed-upon flat rate.

This is not Rossi’s first legal trouble. He previously pleaded guilty to filing false federal tax returns and taking funds from his former employer, Central Illinois Orthopedic Surgery, to purchase personal items without permission. Rossi has been in custody since September 2023 due to multiple bond violations and awaits sentencing on July 2, 2024, for the earlier case.

If convicted of the new charges, Rossi faces up to 10 years in prison for each healthcare fraud count and up to 20 years for each mail and wire fraud count. Each charge also carries a potential $250,000 fine and up to three years of supervised release.

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Steve Robinson
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Steve Robinson is the Editor-in-Chief of The Maine Wire. ‪He can be reached by email at Robinson@TheMaineWire.com.

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<span class="dsq-postid" data-dsqidentifier="28807 https://www.themainewire.com/?p=28807">1 Comment

  1. ME Infidel on June 22, 2024 6:19 AM

    Make a splash about little guys committing fraud while the Fauci Cabal, which includes Big Pharma, made $Billions if not $Trillions with the DOD spearheading the government funding. That’s how we roll these days.

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