ALDI executive convicted in multi-state construction bidding scheme

EAST ST. LOUIS, Ill. (KCTV) – A former ALDI executive will spend time in prison for a $2.8 million scheme that helped the owner of a construction company rig the system and force the chain to overpay for new stores both in Illinois as well as Missouri.

The US Attorney’s Office for the Southern District of Illinois announced that on Tuesday, Oct. 22, Louis R. Ross Sr., 64, of St. Louis, and Donald E. Schniers, 73, were both convicted for their roles in a scheme to rig the construction bid system. of grocery stores in Illinois and Missouri.

Judicial officials indicated that Ross, a former director of real estate for ALDI’s O’Fallon, Missouri, division, pleaded guilty to multiple counts of mail and wire fraud, as well as conspiracy. He was sentenced to 2 years in prison and ordered to pay over $2.8 million in restitution.

Meanwhile, court documents noted that Schniers, owner of C. Junegel Co., a construction company based in Breese, Illinois, pleaded guilty to one count each of mail fraud and conspiracy. He was sentenced to 3 years of probation and ordered to pay more than $2.8 million in restitution.

Court records showed the pair conspired to fabricate and submit false bids to induce C. Juengel to win contracts for ALDI projects without true competition.

“As a trusted director, Louis Ross exploited his position for personal gain by rigging the bidding process, awarding projects to Donald Schniers’ construction company and ultimately defrauding ALDI of millions of dollars,” he US Attorney Rachelle Aud Crowe said. “To protect the integrity of the construction bidding process and strengthen consumer protections, I appreciate our partnership with the FBI and the US Postal Inspection Service to ensure justice.”

From February 2014 to March 2018, law enforcement officials indicated that Ross and Schniers created a false competitive bidding environment. Schniers admitted to filling out false bid forms under the guise of other companies without their knowledge or consent.

“Ross and Schniers colluded to inflate prices and eliminate fair markets, the effects of which trickled down to victim businesses, consumers and 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.”

Court documents noted that the fake bids always included amounts higher than C. Juengel’s, resulting in the company being awarded 12 general services contracts worth about $20 million.

Judicial officials also said Ross and Schniers manipulated the process while altering legitimate bids submitted by other local construction companies. Stifled competition caused ALDI to overpay for projects and take a loss of more than $2.8 million.

“This sentence is a statement that mail fraud will not be tolerated and the perpetrators will be brought to justice,” said Acting Inspector John Jackman, who heads the St. Louis Field Office. Louis of the US Postal Inspection Service. “The Postal Inspection Service will continue to work with our law enforcement partners to collectively pursue criminals who victimize postal customers, American consumers and businesses.”

For nearly a decade, Schniers allegedly paid Ross kickbacks, according to law enforcement officials. These payments totaled over $975,000 in the end. No other information has been released.