EAST ST. LOUIS, Ill. – A former Aldi executive and a general contractor from Breese, Illinois, have admitted guilt to federal fraud offenses involving 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 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, 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 was the Director of Real Estate for Aldi’s O’Fallon, Missouri Division, and Schniers owned C. Juengel Company out of Breese, Illinois. Schniers 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 bids 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.
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 count carries a maximum term of 20 years' imprisonment. Ross's sentencing hearing is scheduled for 1:30 p.m. on Oct. 16 and Schniers's sentencing hearing is scheduled for 10:30 a.m. on Oct. 17 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.
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