The rigging of construction project bids has landed an Aldi executive and a Southern Illinois contractor in hot water. Louis R. Ross, Sr., 64, of St. Louis, and Donald E. Schniers, 73, of Breese, Illinois, pleaded guilty to various federal fraud offenses in a scheme that defrauded the grocery store chain out of millions.
According to court documents, Ross, the former Director of Real Estate for Aldi’s O’Fallon, Missouri, Division, and Schniers, owner of C. Juengel Company, conspired to create a false competitive bidding environment for construction projects from February 2014 through March 2018. Schniers admitted to completing false bid forms under the guise of other construction companies without their knowledge or consent.
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. The scheme resulted in Aldi overpaying for the projects and suffering a loss greater than $2.8 million.
Schniers also manipulated the bidding process by altering legitimate bids submitted by another construction company. In his role in the conspiracy, Schniers paid Ross monthly kickbacks totaling $554,000 from C. Juengel’s bank account.
“By colluding in the bid process, the co-defendants enriched themselves by defrauding Aldi out of millions of dollars,” said U.S. Attorney Rachelle Aud Crowe. “The U.S. Postal Inspection Service is charged with defending the nation’s mail system from illegal use. With the collaborative efforts of our federal law enforcement partners, Postal Inspectors investigate fraudsters who utilize the U.S. Mail to perpetuate financial schemes to defraud others in order to enrich themselves.”
The FBI, along with other law enforcement agencies, investigated the case, which was prosecuted by 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. Ross and Schniers are scheduled to be sentenced on October 16 and 17, respectively, with each count carrying a maximum term of 20 years’ imprisonment.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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