Former Polar Air Cargo Executive Admits Guilt in Multi-Million Dollar Fraud Scheme

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In a significant development, former senior executive Robert Schirmer of Polar Air Cargo has pleaded guilty to participating in a scheme that defrauded the cargo carrier of tens of millions of dollars in revenue over more than a decade. The announcement was made by the office of the United States Attorney for the Southern District of New York.

“Polar senior executive Robert Schirmer admitted his guilt in a scheme to defraud his employer that lasted more than a decade. Today’s plea reflects our office’s longstanding commitment to rooting out corporate fraud,” commented US Attorney Damian Williams.

Schirmer, formerly the Senior Director of Customer Service & Capacity (Americas) at Polar Air Cargo, a subsidiary of Atlas Air Worldwide Holdings, has been released on bail and is scheduled to be sentenced by Judge Jesse M. Furman on February 13, 2024, in the New York Southern District Court.

The guilty plea includes one count of conspiring to commit wire fraud and honest services wire fraud, with a maximum sentence of five years in prison. Schirmer has agreed to pay forfeiture in the amount of USD 983,759.32 and make restitution to Polar Air Cargo in the sum of USD 9,340,729.

The indictment reveals that Schirmer and three other senior executives allegedly received kickback payments totaling USD 23 million through their secret ownership of conflicted vendor companies from 2009 to July 2021. These payments were received either directly or through controlled limited liability companies in exchange for ensuring favorable business arrangements with the airline for those vendors. The fraudulent activities had a profound impact on Polar Air Cargo’s business, affecting nearly every aspect of the company’s operations over the span of a decade.

Among the ten individuals charged, the others include former Vice President & Chief Operations Officer Lars Winkelbauer, former VP of Marketing, Revenue Management, and Network Planning Abilash Kurien, and former VP of Operations, Systems Performance & Quality Carlton Llewellyn. The remaining defendants are vendors who had business arrangements with Polar Air Cargo.

US Attorney General Williams noted that discussions with the other accused are ongoing regarding pre-trial settlements. Consequently, the court has extended the deadline for the filing of defense motions to January 18, 2024, with government opposition due by February 15, 2024, and replies from defendants by February 22, 2024. The trial date is set for October 28, 2024.

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