Former Reditus Laboratories CEO Aaron Rossi pleaded guilty Tuesday to federal charges of mail and tax fraud.
Rossi pleaded guilty to one count of tax fraud for withholding income on his tax return. He also pleaded guilty to one count of mail fraud. The remaining six charges were dropped as part of a plea agreement.
Assistant United States attorneys Douglas McMeyer and Tanner Jacobs said the mail fraud charge stemmed from a scheme from when Rossi was employed by Central Illinois Orthopedic Surgery. They said Rossi used company funds to purchase personal items, including expensive suits, a TV, and a charter plane for his bachelor party.
Rossi said in court that he used the company funds to purchase the personal items. He also said he knowingly withheld income information from his accountant in 2016.
Rossi faces up to three years in federal prison for the tax fraud count and up to 20 years for mail fraud. He also could have to pay a combined total of up to $500,000 in fines. It's likely Rossi will face far less than the maximum penalty as part of his plea arrangement.
His sentencing is scheduled for 10 a.m. June 5.
Prosecutors said the plea does not restrict the government from any investigations into Rossi and Reditus Labs. Rossi is currently involved in a civil case related to the now-closed lab.
