Louis R. Ross, Sr., Bid Rigging, Illinois 2023

EAST ST. LOUIS, Ill. - In a shocking case of corporate corruption, a former ALDI executive and a general contractor from Breese, Illinois, have been sentenced for rigging the bid system for construction projects of grocery stores throughout southern Illinois and Missouri.

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.

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.

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.

Ross and Schniers' scheme was uncovered by the FBI's Springfield office, which worked with the U.S. Postal Inspection Service to secure justice. 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.

The investigation is a testament to the FBI's commitment to working with its partners to investigate fraudulent schemes and bring to justice those who conspire to enrich themselves at the expense of the American public. As the U.S. Attorney's office noted, the sentencing is a statement that mail fraud will not be tolerated, and the perpetrators will be brought to justice.

Source: https://www.justice.gov/usao-sdil/pr/aldi-executive-and-southern-illinois-contractor-sentenced-rigging-construction-project