EAST ST. LOUIS - Former Aldi real estate director Louis Ross, who on May 29 pleaded guilty of taking kickbacks in a fraud scheme against his employers, sued them after they fired him for that conduct in 2018.
He alleged at St. Louis County circuit court in 2019 that Aldi used fraud allegations as pretext for discrimination against him as a black person with a weak heart.
His counsel David Heimos of St. Louis County described him as hard working, loyal, conscientious and dedicated.
Aldi filed a counter claim and Heimos called the allegations malicious fabrications.
Ross and Aldi posted notice in 2020 that they resolved the matter and wished to dismiss it.
In 2022 grand jurors at U.S. district court indicted Ross and Donald Schniers of construction contractor C. Juengel in Breese on charges of conspiracy, wire fraud and mail fraud.
They found Ross received $554,000 in kickbacks from Schniers.
They found Schniers required engineer John Sawyer of Gillespie to kick back.
Ross and Schniers pleaded not guilty and Chief District Judge Nancy Rosenstengel granted continuances through this March.
Schniers moved to change his plea on April 30 and Ross did the same on May 2.
Rosenstengel held a hearing for Schniers on May 16 and set sentencing on Oct. 17.
She ordered Ross’s detention but he moved on May 31 for another hearing, claiming he could make bond because he sold his property in St. Louis County on May 15.
Zillow didn’t post the price as of June 2 but estimated the value at $1.25 million.
Schniers and the government stipulated that the sentencing range runs from 27 to 33 months, which won’t bind Rosenstengel.
They stipulated that Aldi paid C. Juengel about $20 million and C. Juengel retained about $1,300,000 in profit.
They stipulated that Aldi suffered a loss of $2,851,329 and Schniers will pay that amount in restitution, to be offset by amounts from Ross.
Rosenstengel held a hearing for Ross on May 28 and set sentencing with Schniers on Oct. 17.
The clerk hadn’t posted Ross’s stipulation or plea agreement as of May 31.
His civil suit followed his termination by Rob Jefferies, real estate vice president for an Aldi division that covers portions of Illinois, Missouri and Iowa.
Heimos sought relief on his behalf under Missouri human rights law.
He claimed Aldi hired Ross in 1983 and promoted him to real estate director in 1990.
He claimed Ross took leave in March 2018 for congestive heart failure and Jefferies terminated him when he returned in October 2018.
He claimed Jefferies terminated six vendors over age 50 since 2016 including Schniers.
Aldi removed the complaint to district court on the basis of diverse citizenship among Aldi and Schniers as Illinois citizens and Ross as a Missouri citizen.
The counter claim of Aldi counsel Katherine Mendez of Chicago claimed Aldi awarded contracts for construction and renovation of 17 stores in the period of the scheme.
She claimed Ross consistently engaged engineer John Sawyer of Gillespie.
She claimed Jefferies told Ross to expand his portfolio and Ross began submitting invoices from two firms knowing they existed as shell companies.
She claimed an investigation revealed bid rigging and other offenses by Schniers.
She claimed Jefferies directed Ross to add BEX Construction to his bidding list and Ross complied but Schniers altered BEX’s bid to make the price too high.
She claimed national vice president Dan Gavin shared concern with Jefferies in 2017.
She claimed Gavin told Jefferies in 2018 that Aldi construction managers said they had no involvement in preparing contracts.
She claimed Jefferies told Ross he’d involve himself and the managers in group decisions.
She claimed Jefferies, Ross and Vern Wunnenberg met privately and Jefferies said Wunnenberg would take a position as second real estate director.
She claimed Aldi divisions have one, two and three real estate directors.
She claimed Jefferies announced Wunnenberg’s position a week later.
A week after that Ross requested medical leave and Aldi granted it.
Aldi’s construction managers started calling construction companies about bid documents with their names on them and they denied bidding.
Mendez claimed the investigation produced evidence of kickbacks from Schniers and Sawyer to Ross, often coming straight out of payment for inflated invoices.