ALDI Executive and Southern Illinois Contractor Sentenced for Bid Rigging, Ordered to Repay $2.8 Million

EAST ST. LOUIS, Ill. – A federal judge has sentenced a former ALDI executive and a contractor from Breese, Illinois, for colluding to manipulate the bidding system for grocery store construction projects across southern Illinois and Missouri. The duo was ordered to reimburse ALDI more than $2.8 million due to their fraudulent activities.

Louis R. Ross, Sr., 64, of St. Louis, pleaded guilty in May to multiple counts of mail and wire fraud, as well as conspiracy to commit those offenses. He received a 24-month prison sentence and was ordered to repay over $2.8 million to ALDI.

Donald E. Schniers, 73, also pleaded guilty to conspiracy to commit mail and wire fraud, along with one count each of mail and wire fraud. He was sentenced to three years of probation and was likewise ordered to pay more than $2.8 million in restitution.

Court documents reveal that Ross served as the Director of Real Estate for ALDI's O’Fallon, Missouri division, while Schniers owned C. Juengel Company, which provided general contracting services for ALDI stores within that division. Together, they fabricated and submitted false bids to ensure C. Juengel was awarded contracts for ALDI projects without any competitive bidding.

“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,” stated U.S. Attorney Rachelle Aud Crowe. “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.”

From February 2014 to March 2018, Ross and Schniers created a false competitive bidding environment. Schniers admitted to completing fraudulent bid forms under the pretense of other construction companies without their knowledge. This tactic gave the illusion of competition for ALDI's projects, which did not exist.

“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 FBI is committed to working with our partners to investigate fraudulent schemes and bring to justice those who conspire to enrich themselves at the expense of the American public.”

The fabricated bids consistently exceeded C. Juengel’s actual bids, allowing the company to secure 12 contracts for services valued at around $20 million. They also manipulated legitimate bids from another local contractor, leading to ALDI overpaying for the projects and incurring a loss exceeding $2.8 million.

“This sentencing is a statement that mail fraud will not be tolerated, and the perpetrators will be brought to justice,” said Acting Inspector in Charge, John Jackman, of the U.S. Postal Inspection Service. “The Postal Inspection Service will continue to partner with our law enforcement partners to collectively pursue criminals who victimize postal customers, U.S. consumers, and businesses.”

In return for Ross’s continued awarding of contracts, Schniers paid him kickbacks for nearly ten years, amounting to over $975,000 through monthly checks.

Both men are ordered to repay $2,851,239 to ALDI. After completing his prison sentence, Ross will be subject to three years of supervised release.

The investigation was conducted by the FBI Springfield and St. Louis Field Offices and the St. Louis Field Office of the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Zoe Gross and Trial Attorney Andrew Rosa from the Department of Justice, Antitrust Division, Chicago Office.