EAST ST. LOUIS – A federal judge has sentenced two men for their roles in a scheme that manipulated the bidding process for construction projects at ALDI grocery stores in southern Illinois and Missouri. Louis R. Ross, Sr., a former ALDI executive, and Donald E. Schniers, a general contractor from Breese, Illinois, were ordered to repay the company more than $2.8 million in restitution.
Ross, 64, of St. Louis, pleaded guilty in May to multiple counts of mail and wire fraud, as well as conspiracy to commit those crimes. He received a 24-month prison sentence and was mandated to pay restitution to ALDI. Schniers, 73, pleaded guilty to one count each of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. He was sentenced to three years of probation and also ordered to pay the same restitution amount.
According to court documents, Ross served as the Director of Real Estate for ALDI’s O’Fallon, Missouri, Division, while Schniers owned C. Juengel Company, which provided construction and renovation services for ALDI stores. The two conspired to fabricate and submit fraudulent bids to ensure C. Juengel won contracts without a competitive bidding process.
From February 2014 through March 2018, Ross and Schniers created a false competitive bidding environment, with Schniers admitting to submitting fake bids under the names of other construction companies without their consent. This manipulation resulted in C. Juengel being awarded 12 contracts valued at approximately $20 million, all while inflating prices and stifling fair market competition.
“Ross and Schniers colluded to inflate prices and eliminate fair markets, the effects of which trickled down to the victim business, the consumers, and the competition,” said FBI Springfield Special Agent in Charge Christopher Johnson.
The fraudulent scheme included altering legitimate bids from other companies, leading ALDI to overpay for projects and suffer losses exceeding $2.8 million. In exchange for continuing to award contracts to C. Juengel, Ross required Schniers to pay him kickbacks totaling over $975,000 over nearly a decade, often in the form of monthly checks.
The case was prosecuted by Assistant U.S. Attorney Zoe Gross from the Southern District of Illinois and Trial Attorney Andrew Rosa from the Department of Justice, Antitrust Division, Chicago Office. The investigation was conducted by the FBI Springfield and St. Louis Field Offices, as well as the St. Louis Field Office of the U.S. Postal Inspection Service.
