Former lab CEO sentenced over fraud at orthopedic practice


Aaron Rossi, former CEO of the now closed Reditus Labs, was sentenced to five years in prison for federal mail and tax fraud and plans to defraud Bloomington-based Central Illinois Orthopedic Surgery, 25 News Now reported July 2.

Mr. Rossi pleaded guilty to one count of tax fraud for withholding income on his tax return and one count of mail fraud, with six additional charges dropped as part of a plea agreement in February. He was accused of using the orthopedic group's funds for personal purchases, and he admitted to using the funds illegally in court and admitted to withholding income information from his accountant in 2016. 

Along with his sentence, he will have to pay $3.1 million in restitution. Earlier in June he was also indicted by a federal grand jury on six counts of healthcare fraud, one count of mail fraud, and four counts of wire fraud. He is accused of defrauding the state of Illinois and public and private health insurance companies out of hundreds of thousands of dollars during the COVID-19 pandemic.

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