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Court filing: DOJ is investigating Reditus' billing and contracting practices

Pekin-based Reditus made hundreds of millions of dollars from state contracts for COVID-19 testing and brought hundreds of jobs to Pekin.

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.

In the motion, Rossi’s attorneys ask that ongoing civil litigation in Tazewell County court be put on pause. One of the reasons for that request is because of “ongoing, confidential United States Department of Justice criminal and civil investigations into Reditus’ billing and contracting practices, and presumably those acting on its behalf, including Aaron Rossi,” the filing reads. It also refers to an “ongoing and secret federal grand jury investigation with an IRS Special Agent.”

The existence of a grand jury and any investigations involving Reditus’ billing and contracting practices have not been previously disclosed publicly.

The motion was filed Thursday in Tazewell County court. The court filing was obtained by WMBD-TV, which first reported it Friday morning.

The document obtained by WMBD was a "Motion for Leave to File the Emergency Motion for Immediate Stay of All Litigation Proceedings Under Seal." A "Motion for Leave" is essentially asking the court's permission to file something. It was filed Thursday along with the actual emergency motion.

Rossi's attorneys initially filed the Motion for Leave into the public record, making it temporarily available to the media, according to the Tazewell County circuit clerk's office. The attorneys later asked to put it under seal, and it was.

Messages left with Rossi's attorneys were not immediately returned Friday.

COVID-testing giant

Pekin-based Reditus made hundreds of millions of dollars from state contracts for COVID-19 testing and brought hundreds of jobs to Pekin. Reditus had testing contracts with the Illinois Department of Public Health and the Illinois Department of Corrections, WGLT previously reported. It ran the COVID testing site at Bloomington's Interstate Center for much of the pandemic.

Reditus ultimately went out of business in November as the company and its leadership faced a litany of legal problems.

In civil court, Rossi’s former business partners have accused him of pillaging the company to fund his own lavish lifestyle. Rossi did amass a fleet of luxury cars and at least two private planes, WGLT has reported. The new court filing is part of that civil litigation involving those former business partners.

Rossi also faces federal criminal charges of tax and mail fraud. He has pleaded not guilty and that case remains pending. His spokesperson has said Rossi’s opponents are trying his case in the media and they “look forward to having our day in court.”

In March, IDPH and IDOC said they were not aware of any allegations against Reditus that involved its work for those two state agencies. Messages left with IDPH and IDOC on Friday were not immediately returned.

This story will be updated.

Ryan Denham is the digital content director for WGLT.