Former Polar Air Cargo (PO, New York JFK) senior executive Robert Schirmer has pleaded guilty in connection with a scheme to defraud the cargo carrier of tens of millions of dollars in revenue, according to an announcement 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, 58, the Atlas Air Worldwide Holdings subsidiary's former Senior Director, Customer Service & Capacity (Americas), 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.

He pled guilty to one count of conspiring to commit wire fraud and honest services wire fraud, which carries a maximum sentence of five years in prison. He also agreed to pay forfeiture in the amount of USD983,759.32 and to make restitution to Polar Air Cargo in the amount of USD9,340,729.

According to the indictment, public filings and court proceedings, Schirmer and three other senior executives pocketed USD23 million in kickback payments or disbursements through their secret ownership of conflicted vendor companies from about 2009 to July 2021. They allegedly received unlawful payments, either directly or through various limited liability companies they controlled, in exchange for ensuring that those vendors received favourable business arrangements with the airline. The fraud they perpetrated led to pervasive corruption of Polar Air Cargo’s business, touching nearly every aspect of the company’s operations, for over a decade.

Ten suspects were charged, the others being former Vice President & Chief Operations Officer Lars Winkelbauer, 47, who was extradited from Thailand last month; former VP of Marketing, Revenue Management and Network Planning Abilash Kurien, 45; and former VP of Operations, Systems Performance & Quality Carlton Llewellyn, 55. The other defendants are vendors who had business arrangements with Polar Air Cargo.

According to Attorney General Williams, discussions with the other accused continue regarding pre-trial settlements. Consequently, the court has extended the deadline for the filing of defence motions to January 18, 2024; government opposition by February 15, 2024; replies from defendants by February 22, 2024; with a trial date set down for October 28, 2024.