EAST STREET. LOUIS, Ill. (KCTV) – A former ALDI executive will spend time in prison for a $2.8 million scheme that helped a construction company owner rig the system and force the chain to pay up too expensive for new stores in Illinois and Missouri.

THE U.S. Attorney’s Office for the Southern District of Illinois announced that on Tuesday, October 22, Louis R. Ross Sr., 64, of St. Louis, and Donald E. Schniers, 73, were both sentenced for their roles in a scheme to rig the system of tender for construction. grocery stores in Illinois and Missouri.

Court officials said Ross, a former real estate manager for ALDI’s O’Fallon, Missouri, division, pleaded guilty to multiple counts of mail and wire fraud as well as conspiracy. He was sentenced to 2 years in prison and ordered to pay more than $2.8 million in restitution.

Meanwhile, court documents indicated that Schniers, owner of C. Junegel Co., a Breese, Ill.-based construction company, pleaded guilty to a single count of mail and wire fraud and conspiracy . He was sentenced to 3 years of probation and ordered to pay more than $2.8 million in restitution.

Court records revealed that the two men conspired to fabricate and submit false bids so that C. Juengel would win contracts for ALDI projects without real competition.

“As a trusted executive, Louis Ross exploited his position for personal gain by rigging the bidding process, awarding projects to Donald Schniers’ construction company, and ultimately defrauding ALDI out of of millions of dollars,” said 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 United States Postal Inspection Service to ensure justice .”

Between at least February 2014 and March 2018, law enforcement officials said Ross and Schniers created a false bidding environment. Schniers admitted to filling out false offer forms under the guise of other companies without their knowledge or consent.

“Ross and Schniers colluded to inflate prices and eliminate fair markets, the effects of which rippled through victim businesses, consumers and competition,” said Christopher Johnson, FBI Special Agent in Springfield. “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.”

Court documents indicated that the fake bids always included higher amounts than C. Juengel’s, leading to the company’s award of 12 general services contracts worth approximately $20 million. dollars.

Court officials also said Ross and Schniers manipulated the process by altering legitimate bids submitted by other local construction companies. Stifled competition caused ALDI to overpay for its projects and suffer a loss exceeding $2.8 million.

“This conviction is a declaration that mail fraud will not be tolerated and that perpetrators will be brought to justice,” said Acting Inspector-in-Charge John Jackman, who heads the Department’s St. Louis field office. United States Postal Inspection Service. “The Postal Inspection Service will continue to work with our law enforcement partners to collectively pursue criminals who victimize America’s postal customers, consumers and businesses.”

According to law enforcement officials, for nearly a decade, Schniers allegedly paid Ross bribes. These payments ultimately totaled more than $975,000. No further information has been released.

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