A former Aldi executive and a general contractor from Breese admitted guilt to federal fraud offenses which involved rigging the bid system for construction projects of grocery stores throughout southern Illinois and Missouri.
64-year-old Louis R. Ross, Sr., of St. Louis, pleaded guilty to one count of conspiracy to commit mail and wire fraud, four counts of mail fraud and four counts of wire fraud. 73-year-old Donald E. Schniers pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud.
US Attorney Rachelle Aud Crowe says by colluding in the bid process the co-defendants enriched themselves by defrauding Aldi out of millions of dollars.
According to court documents, Ross was the Director of Real Estate for Aldi’s O’Fallon, Missouri, Division, and Schniers owned C. Juengel Company in Breese. Schniers, through C. Juengel, provided general contracting services including construction and renovation to Aldi stores within Ross’s division.
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.
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 construction company. Due to the stifled competition, Aldi overpaid for the projects and suffered an approximate loss greater than $2.8 million.
For his role in the conspiracy, Schniers paid Ross monthly kickbacks totaling $554,000 from C. Juengel’s bank account.
Under the sentencing guidelines, each of the counts carry a maximum term of 20 years’ imprisonment. The two men are scheduled to be sentenced in federal court in East St. Louis in October.
