Merrick B. Garland, Attorney General | https://www.justice.gov/
Merrick B. Garland, Attorney General | https://www.justice.gov/
A federal judge has sentenced a former ALDI executive and a contractor from Breese, Illinois, for manipulating the bidding process for construction projects in southern Illinois and Missouri. The court ordered them to repay over $2.8 million to ALDI due to their fraudulent activities.
Louis R. Ross, Sr., 64, from St. Louis, admitted guilt in May to multiple charges of mail and wire fraud and conspiracy. He received a 24-month prison sentence and was instructed to pay more than $2.8 million in restitution.
Donald E. Schniers, 73, also pleaded guilty to conspiracy along with separate counts of mail and wire fraud. He was sentenced to three years' probation and required to pay the same restitution amount as Ross.
Court documents revealed that Ross served as Director of Real Estate for ALDI’s O’Fallon Division while Schniers owned C. Juengel Company in Breese, Illinois. They collaborated to submit fake bids ensuring C. Juengel won contracts without real competition.
U.S. Attorney Rachelle Aud Crowe stated: “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.”
From February 2014 through March 2018, they created an illusion of competitive bidding by submitting false bids under other companies' names without consent.
FBI Springfield Special Agent Christopher Johnson commented: “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.”
C. Juengel received 12 contracts valued at about $20 million due to this scheme while legitimate bids were altered or suppressed.
John Jackman from the U.S. Postal Inspection Service remarked: “This sentencing is a statement that mail fraud will not be tolerated, and the perpetrators will be brought to justice.”
Ross accepted kickbacks from Schniers over nearly ten years in exchange for contract awards totaling over $975,000.
Both men must repay $2,851,239 collectively in restitution following their sentences.
The investigation involved FBI offices in Springfield and St. Louis alongside the U.S. Postal Inspection Service's St. Louis Field Office.
Assistant U.S. Attorney Zoe Gross from Southern District of Illinois along with Trial Attorney Andrew Rosa prosecuted this case.
Alerts Sign-up