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Former Reditus CEO Aaron Rossi pleaded guilty Tuesday to two of nine counts of federal tax and mail fraud.
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Former Reditus Labs CEO Aaron Rossi is set to remain in custody until a December trial where he faces federal charges of mail fraud and tax fraud.
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Former Reditus CEO Aaron Rossi appeared in federal court Friday morning, after officials allege he once again violated the terms of his release.
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The government has unsealed two major civil actions against former Reditus CEO Aaron Rossi and his business partners, alleging a multimillion-dollar billing fraud scheme during the COVID pandemic.
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The court-appointed receiver hired to oversee Reditus Labs is asking for a judge’s permission to sue former CEO Aaron Rossi and other company insiders, hoping to claw back over $100 million in allegedly misappropriated funds.
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Newly unsealed documents in the Reditus lawsuits point to a federal investigation that’s still very much active – and that former CEO Aaron Rossi’s business partners accuse him of stealing or squandering over $100 million in company money as profits soared during the pandemic.
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A Tazewell County judge moved Tuesday to bring more of the civil litigation involving Reditus Labs into public view, unsealing more records that may shed light on the unraveling of a company that won hundreds of millions of dollars in state COVID-19 testing contracts.
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The U.S. Department of Justice is conducting “criminal and civil investigations” into Reditus Labs’ billing and contracting practices and also presumably former CEO Aaron Rossi, according to a new court filing that suggests a broadening probe into the COVID-19 testing giant.
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Reditus will cease all testing as of this Friday. The company was placed into receivership in April.
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According to court documents, the Bloomington man tested positive for marijuana on Sept. 7, which was a violation of his conditions for pretrial release. He was arrested Friday morning and booked at the Knox County jail.