PEORIA, Ill. (WMBD) — The former head of Reditus Labs will spend a few more nights in the Peoria County Jail while his attorneys prepares to address alleged bond violations linked to his federal mail fraud case.
Aaron Rossi appeared by way of ZOOM video conferencing in U.S. District Court in Peoria on Friday. He was wearing the orange jumpsuit of a county jail inmate. He said little to U.S. Magistrate Judge Eric Long, except to explain that he understood the allegations against him regarding the violations.
Rossi is accused of selling off at least eight vehicles within the past 10 months in violation of guidelines given to him by U.S. Probation officials. He also broke his curfew one night after being given permission to travel to Chicago.
His attorney, Richard Blake, told Long that he hadn’t received all the financial papers regarding the alleged transactions so he asked for the matter to be put over until next week. Rossi will be held in custody pending that hearing on Tuesday before Chief U.S. District Judge Sara Darrow.
Under federal rules, Rossi will be held until he appears next in court on Tuesday when Darrow could extend his detention or opt to release him.
An assistant U.S. attorney told Long that his office believes Rossi has sold more than the vehicles listed in a seven-page violation report.
The sell-offs matter as he was barred from liquidating any assets as he’s accused of financial malfeasance and federal prosecutors might use any remaining vehicles or property to reimburse those who were bilked out of money.
To prove the allegations, prosecutors must provide “clear and convincing” evidence of the violations.
The petition, which was unsealed Friday, said a violation report was submitted in May regarding a curfew violation by Rossi in late April. No action was recommended or take, according to court records.
He was also allowed to sell property in Bloomington and a plane but the violation report goes on to state that he didn’t seek permission to sell 2021 Cadillac Escalade that was reportedly worth more than $100,000 or a 2021 Mercedes-Benz GLE Coup, also valued at more than $100,000.
Those sales allegedly occurred in September 2022. In December, he allegedly sold a 2021 Tesla Model S valued at more than $100,000. From January to June, five other vehicles were also sold, according to court records.
In all cases, he didn’t see permission to do so as required, the government is alleging.
This isn’t the first time the former biotech start-up CEO has been in trouble with federal probation officers. In August 2022, a petition was filed in the U.S. Clerk’s Office that he violated conditions of his pretrial release by testing positive for methamphetamine several times last summer.
Both sides agreed to terms that he have a curfew and waring a GPS monitoring bracelet at a hearing earlier this year. Other conditions bar him from opening new lines of credit and to submit to drug testing when asked.
Rossi is facing federal mail fraud charges related to the alleged misuse of funds from a Bloomington medical practice. All the counts allegedly occurred in 2017, while he was working at Central Illinois Orthopedic Surgery, and claims he used his position as an office manager for his own gain.
He allegedly moved the practice’s bank account to a different institution and changed accountants. He also allegedly made misleading and false entries in the firm’s financial records to hide this. The indictments list the practice as a victim as well as two doctors who owned the practice, listed in the indictment as “Victims A and B.”
If convicted, he faces up to 20 years in prison.
