Breese contractor and Aldi executive sentenced in bid-rigging and kickback scheme

A former executive for Aldi and a building contractor from Breese have been sentenced in federal court in East St. Louis for rigging bids for the construction and remodeling of grocery stores throughout southern Illinois and Missouri.

Louis R. Ross Sr., 64, a former Aldi executive from St. Louis, was sentenced on Oct. 16 to serve two years in prison, according to court records and a news release from the U.S. Attorney’s Office Tuesday. Ross pleaded guilty in May 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, a general contractor from Breese, was sentenced to three years’ probation. He previously pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud.

Ross and Schniers were each ordered to pay over $2.8 million in restitution to Aldi.

Chief U.S. District Judge Nancy J. Rosenstengel imposed the sentences, according to court records.

Ross was represented by Todd Schultz, who could not be reached for comment Tuesday.

Schniers’ defense attorney was David Niemeier of St. Louis and Niemeier declined to comment Tuesday.

“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 in the news release. “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.”

Ross was the director of real estate for Aldi’s O’Fallon, Missouri, Division, and Schniers owned C. Juengel Company out of Breese, according to the news release.

“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,” the news release states.

Prosecutors stated the following:

▪ 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.

▪ 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.

▪ In exchange for Ross’ 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 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.