Rossi Sentenced to an Additional Three Years in Prison for Healthcare Fraud Related to COVID Testing

PEORIA, Ill. – Aaron Rossi, 42, of Morton, Illinois, was sentenced on July 15, 2025, to an additional 37 months in prison for healthcare and wire fraud related to false billing for COVID tests at Reditus Labs. Rossi was also ordered to forfeit a recreational vehicle worth an estimated $1 million.

In addition, Rossi, who has been in county jail since August 2023 related to previous fraud convictions, was sentenced to a term of time served for possessing contraband while incarcerated.

At the sentencing hearing before Chief U.S. District Judge Sara Darrow, the government presented evidence that beginning in October 2020 and continuing until at least November 2021 Rossi, through his laboratory, Reditus, schemed to defraud Medicare, the State of Illinois, and several private health insurance companies. He did this by submitting claims with codes for services that were never performed and by receiving payments from more than one source for the same test. The government presented evidence showing that Rossi is responsible for a total combined loss of $525,520.61.

A federal grand jury returned an indictment against Rossi for the COVID test fraud in June 2024, charging him with 11 counts of healthcare and wire fraud. Rossi pleaded guilty to one count of wire fraud and one count of healthcare fraud in April 2025.

At the time of his indictment in the COVID test fraud case, Rossi was already in the custody of the U.S. Marshals Service on charges related to his scheme to defraud a former employer and file false income taxes. Rossi was ultimately sentenced to five years in prison in that case and ordered to pay more than $3 million in restitution and fines following his convictions for mail fraud and filing a false tax return.

While Rossi was being held in the Peoria County Jail on the charges related to his fraud at Reditus, a federal grand jury returned a third indictment in March 2025 charging Rossi with possessing contraband while incarcerated (three counts). According to the indictment, the Peoria County Sheriff’s deputies found several items of contraband in Rossi’s possession, including a synthetic cannabinoid (K2), which was hidden in his bible; a battery for lighting substances on fire; and a marijuana vape pen. The statutory penalties for each of the three counts ranged from 6 months to 10 years’ imprisonment, fines of $5,000 to $250,000, and one- to three-year terms of supervised release. Rossi pleaded guilty to all three of these counts in April 2025.

During this week’s sentencing hearing, Chief Judge Darrow noted that Rossi’s behavior was, as in his previous fraud case, driven by greed and hubris. She stated that Rossi stepped in and offered to help in response to the COVID pandemic, but then used those same circumstance to take advantage of others. Judge Darrow said that Rossi was in a position that most people in the country would never be in, but that he was there, in part, because of his fraud. Judge Darrow imposed the 37-month sentence, in part, based on her observation that Rossi had a high risk of recidivism as he seemed to take every opportunity given to him as an occasion to take more than he deserved. This included not just his previous fraud and his fraud at Reditus, but also his conduct at the jail. Judge Darrow stated that Rossi behaved as if he was above the law.

The statutory penalties for healthcare fraud are up to ten years’ imprisonment, and the penalties for wire fraud are up to 20 years’ imprisonment. Each charge is to be followed by up to a three-year term supervised release and carries the possibility of a $250,000 fine.

“This case showcases the hard work of multiple law enforcement agencies,” said Acting United States Attorney Gregory M. Gilmore. “Their cooperation and dedication led to the just result in this case. Our office is committed to these prosecutions and to holding those who commit fraud accountable.”

“This sentencing demonstrates the commitment of U.S. law enforcement to protecting the integrity of the federal healthcare system by holding fraudsters accountable for submitting false claims,” said Special Agent in Charge Linda T. Hanley of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG).  “HHS-OIG, together with our law enforcement partners, will continue to safeguard taxpayer funds to ensure that the Medicare and Medicaid programs serve patients effectively and as intended.”

“This additional sentencing underscores two critical points: first, Mr. Rossi is being held fully accountable for his actions, and second, the relentless work of these agencies continues until justice is served,” said Christopher J.S. Johnson, Special Agent in Charge of the Federal Bureau of Investigation’s Springfield Field Office. “White-collar criminals often try to obscure the truth, but diligent investigation will always bring the facts to light.”

“This complex case required thousands of hours of investigation by U.S. Postal Inspectors and other investigative staff,” said Ruth Mendonça, Inspector in Charge of the Chicago Division of the U.S. Postal Inspection Service. “The sentence rendered in this case makes every minute spent unraveling this scam worthwhile. We are proud of the combined efforts of our law enforcement partners and the United States Attorney’s Office who worked with Postal Inspectors in bringing Mr. Rossi to justice.”

“The U.S. Department of Labor’s Employee Benefit Security Administration will take every opportunity to work collaboratively with our law enforcement partners in these important investigations to protect participants in private sector health plans,” said Mark Underwood, Regional Director of the U.S. Department of Labor’s Employee Benefit Security Administration, Kansas City Regional Office.

The Reditus case investigation was conducted by the Department of Health and Human Services – Office of Inspector General; the United States Postal Inspection Service; the Internal Revenue Service; the U.S. Department of Labor -Employee Benefit Security Administration; and the Federal Bureau of Investigation, Springfield Field Office. The Peoria County Sheriff’s Office investigated the contraband case. Assistant U.S. Attorneys Douglas F. McMeyer and Tanner K. Jacobs represented the government in the prosecution.