ALDI Executive and Southern Illinois Contractor Sentenced for Rigging Construction Project Bids, Ordered to Pay More Than $2.8 Million

EAST ST. LOUIS, Ill. - A federal judge sentenced a former ALDI executive and a general contractor from Breese, Illinois, for rigging the bid system for construction projects of grocery stores throughout southern Illinois and Missouri. The two were ordered to repay ALDI more than $2.8 million in restitution as a result of the fraudulent bidding scheme.

Louis R. Ross, Sr., 64, of St. Louis, pleaded guilty in May to multiple counts of mail and wire fraud and a conspiracy to commit those crimes. Ross was sentenced to 24 months' imprisonment and ordered to pay more than $2.8 million in restitution to ALDI.

Donald E. Schniers, 73, pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud. Schniers was sentenced to 3 years' probation and also ordered to pay more than $2.8 million in restitution to ALDI.

According to court documents, Ross was the Director of Real Estate for ALDI's O'Fallon, Missouri, Division, and Schniers owned C. Juengel Company out of Breese, Illinois. Schniers, through C. Juengel, provided general contracting services including construction and renovation to ALDI stores within Ross's division. The two men conspired to fabricate and submit fraudulent bids for general contracting services to cause C. Juengel to win contracts for ALDI construction and renovation projects without a competitive bidding process.

"As a trusted executive, Louis Ross exploited his position to personally profit by rigging the bid process, granting projects to Donald Schniers' construction company and ultimately defrauding ALDI out of millions of dollars," said U.S. Attorney Rachelle Aud Crowe. "To protect the integrity of the construction bidding process and strengthen consumer protections, I appreciate our partnership with the FBI and the U.S. Postal Inspection Service to secure justice."

From at least February 2014 through March 2018, Ross and Schniers conspired to create a faux competitive bidding environment for construction projects. Schniers admitted to completing false bid forms under the guise of other construction companies without their knowledge or consent. By doing so, Ross and Schniers created the appearance of a competitive bidding environment for ALDI's work when there was not one.

"Ross and Schniers colluded to inflate prices and eliminate fair markets, the effects of which trickled down to the victim business, the consumers, and the competition," said FBI Springfield Special Agent in Charge Christopher Johnson. "The FBI is committed to working with our partners to investigate fraudulent schemes and bring to justice those who conspire to enrich themselves at the expense of the American public."

The fictitious bids always included higher amounts than C. Juengel's, which led to C. Juengel being awarded the projects. Using the rigged bidding system, C. Juengel was awarded 12 contracts for general contractor services valued at approximately $20 million.

Ross and Schniers also manipulated the bidding process by altering legitimate bids submitted by another local construction company. Due to the stifled competition, ALDI overpaid for the projects and suffered an approximate loss greater than $2.8 million.

"This sentencing is a statement that mail fraud will not be tolerated, and the perpetrators will be brought to justice," said Acting Inspector in Charge, John Jackman, who leads the St. Louis Field Office of the U.S. Postal Inspection Service. "The Postal Inspection Service will continue to partner with our law enforcement partners to collectively pursue criminals who victimize postal customers, U.S. consumers, and businesses."

In exchange for Ross's willingness to continue awarding C. Juengel its desired contracts, Ross required Schniers to pay him kickbacks for approximately a decade. These kickback payments usually came in the form of monthly $9,000 checks from C. Juengel's bank account and totaled over $975,000.

Both men were ordered to pay $2,851,239 in restitution to ALDI. Following imprisonment, Ross will serve three years of supervised release.

The FBI Springfield and St. Louis Field Offices and the St. Louis Field Office of the U.S. Postal Inspection Service contributed to the investigation.

Assistant U.S. Attorney Zoe Gross with the Southern District of Illinois and Trial Attorney Andrew Rosa with the Department of Justice, Antitrust Division, Chicago Office prosecuted the case.