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Illinois man charged with multiple fraud counts related to COVID pandemic – The Southland Journal

Illinois man charged with multiple fraud counts related to COVID pandemic – The Southland Journal

Illinois man charged with multiple fraud counts related to COVID pandemic – The Southland Journal

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Charging

Illinois man charged with multiple fraud counts related to COVID pandemic (Springfield, IL) — Earlier this week, a grand jury indicted a Morton, Illinois man, Aaron Rossi (“Rossi”), 40, on six counts of health care fraud, one count of fraud mail and four counts of wire fraud 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.

The indictment alleges that Reditus Laboratories, LLC (“Reditus”), located in Pekin, Illinois, was a full-service pathology laboratory that offered various testing services to patients and clients. As part of those services, Reditus had the ability to perform PCR testing for infectious diseases, including the COVID-19 virus. After the COVID pandemic reached the United States in early 2020, Rossi and Reditus began processing COVID-19 PCR tests that were paid for by public and private health insurance programs, such as Medicare, Medicaid, Blue Cross Blue Shield of Illinois, Healthlink, and the Health Resources and Services Administration’s Uninsured Program. Beginning in October 2020 and continuing through at least November 2021, Rossi established policies and procedures at Reditus that directly benefited him financially and defrauded healthcare providers. Services provided were mischaracterized to receive payment for services that were not actually provided. This resulted in the six counts of health care fraud alleged in the indictment.

Additionally, Rossi and Reditus had a contract with the state of Illinois to provide COVID-19 PCR testing. The contract, signed by Rossi as CEO of Reditus, was a flat-rate contract. Reditus could only invoice the State for the difference between what a patient’s health coverage paid and the fixed rate agreed upon with the State. Rossi, however, developed a scheme to bill both healthcare providers and the State, which resulted in Reditus fraudulently receiving double payments for the same COVID-19 PCR tests, one from the State and one from another. health insurance provider. This conduct was the basis for the mail fraud charge and the four counts of wire fraud alleged in the indictment.

Rossi previously pleaded guilty to charges of filing false federal tax returns and receiving funds from his former employer, Central Illinois Orthopedic Surgery in Bloomington, on Feb. 6, 2024. In that case, Rossi admitted to receiving funds without knowledge or permission from his employer and fraudulently purchasing personal items that had been delivered to his home. Due to multiple bail violations, Rossi has been in the custody of the U.S. Marshals Service since September 2023 and remains in custody for that case pending his sentencing, currently scheduled for July 2, 2024. The indictment today’s formal alleges new crimes and conduct that are independent. of his initial case and that took place once the conduct in his first case was concluded.

If convicted of the new crimes, Rossi faces maximum statutory penalties of up to 10 years in prison for each of the counts of health care fraud, and up to 20 years in prison for each of the counts of mail and wire fraud. . Each of the 11 counts could also result in a fine of $250,000. Incarceration could be followed by 3 years of supervised release for each charge.

The investigation of the case was carried out by the United States Postal Inspection Service; the Internal Revenue Service; the Federal Bureau of Investigation—Springfield Division; the Department of Labor—Employee Benefits Security Administration; Office of Personnel Management—Office of the Inspector General; and Department of Health and Human Services—Office of Inspector General. Assistant United States Attorneys Douglas F. McMeyer and Tanner K. Jacobs represent the government in the prosecution.

The public is reminded that an accusation is simply an accusation; The accused is presumed innocent unless proven guilty.

Illinois man charged with multiple fraud counts related to COVID pandemic

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