Breese contractor and Aldi executive admit to bid-rigging and kickback scheme

A former executive for Aldi and a building contractor from Breese pleaded guilty in federal court Wednesday to rigging bids for the construction and remodeling of grocery stores throughout southern Illinois and Missouri.

Louis R. Ross, Sr., 64, of St. Louis, pleaded guilty in the U.S. Court for the Southern District of Illinois to one count of conspiracy to commit mail and wire fraud, four counts of mail fraud and four counts of wire fraud.

Donald E. Schniers, 73, of Breese, pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud.

According to court documents, Ross, who was director of real estate for Aldi’s O’Fallon, Missouri division, created false bids or altered legitimate bids from competing contractors so that Schniers’ company, C. Juengel, would receive the contracts.

Court records show the value of those contracts totaled about $20 million over a four-year period from “at least” February of 2014 though March of 2018.

Schniers, in turn, paid Ross monthly kickbacks totaling $554,000 from C. Juengel’s bank account, federal court records state.

“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 fictitious bids always included higher amounts than Schniers, which led to C. Juengel being awarded the projects. Using the rigged bidding system, C. Juengel was awarded 12 contracts for general contractor services.

Ross and Schniers also admitted in court to manipulating the bidding process by altering legitimate bids submitted by another construction company.

“Ross instructed Schniers to submit the fraudulent bids in the names of the other regional construction companies,” the criminal complaint says. “Ross was aware that the bids from the other regional construction companies were fabricated and altered when he approved C. Juengel as the winning bidder for certain Aldi projects in the O’Fallon, Missouri Division.”

Because of the stifled competition, Aldi overpaid for the projects and suffered an approximate loss greater than $2.8 million, the complaint says.

Attempts to reach Schniers’ defense attorney, Richard Greenberg, were unsuccessful Wednesday afternoon.

Under federal sentencing guidelines, each of the counts carries a maximum term of 20 years’ imprisonment.

Ross’s sentencing hearing is scheduled for 1:30 p.m. on Oct. 16 and Schniers’ sentencing hearing is scheduled for 10:30 a.m. on Oct. 17, both at the federal courthouse in East St. Louis.

The FBI Springfield and St. Louis Field Offices and the St. Louis Field Office of the U.S. Postal Inspection Service are contributing 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 are prosecuting the case.