Lawyers: Rossi stole $100 million from Reditus to fund lavish lifestyle
TAZEWELL COUNTY (25News Now) - Former business partners accuse former Reditus Labs CEO of taking $100 million of the company’s money to fund his own lavish lifestyle, according to new unsealed court filings obtained by 25 News.
In the court filing from December, lawyers for Dr. Jim Davie lay out several new allegations against Rossi, including interference with a court-appointed receiver. They accuse him of taking $74 million in direct payments, and spending millions more of company funds to buy a variety of lavish, luxury goods and services as well as a weed business, his own brand management company, and an albino turtle breeding business.
The complaint alleges that Rossi also used the funds to buy boats, University of Tennessee football tickets, Louis Vuitton luggage and even a $30 subscription to a site (AshleyMadison) helping married people start affairs. Last year, 25 News reported Rossi purchased two jets and a fleet of more than 60 cars and SUV, some of which were high end imports.
Until now, the financial specifics behind Reditus’ profits have been under court seal. 25 News intervened in the case last year, arguing the financial details should be made public because the company received more than $200 million in state COVID testing contracts. A judge ruled in favor of local media outlets, but many of the most sensitive documents detailing the company’s profits remained under seal until now.
The civil lawsuit is years old and gained attention after Rossi was indicted for federal tax fraud in an unrelated legal case. It would be the start of the company’s unraveling over the next 12 months. It was first placed into court receivership last April, and now it is being dissolved entirely.
25News has been reporting on the allegations against form Reditus Labs CEO Aaron Rossi since his federal tax fraud indictment in March of last year.
Until now, it was not public as to how much Rossi was accused of taking from his company that profited greatly and suddenly with lucrative state COVID-19 testing contracts.
At issue now in the civil case is where the liquidated company’s assets will go. Dr. Davie is the ousted business partner bringing the suit. His lawyers say Rossi and his lawyer Michael Evans unfairly froze the two equal partners out of the company at the onset of the pandemic, depriving them of the opportunity to profit from the company’s testing success.
The suit alleges revenues from Reditus Labs went from $1.8 million to more than $137 million a year late in 2020. According to the suit, $60 million of that was profit.
The civil complaint also alleges Rossi paid his dad and wife a combined $1 million a year in what the lawyers call “phony roles.”
The suit also claims malpractice of the attorneys who represented Reditus Labs, acting not in the best interest of Reditus Labs, but only the interests of Rossi.
Rossi is awaiting trial in his criminal case and was forced to wear an ankle monitor for violating bond conditions when he tested positive for controlled substances without court permission.
25News has reached out to the public relations team for Rossi, but so far has not received a response.
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