Former International Cargo Airline Executive Pleads Guilty to Defrauding the Airline

Carlton Llewellyn, former senior executive at cargo airline Polar Air Cargo Worldwide, pleaded guilty on Jan. 16 to conspiracy to commit wire fraud as part of a scheme to defraud the airline, the U.S. Attorney's Office for the Southern District of New York announced. The count comes with a maximum five-year prison stint, and in addition, Llewellyn agreed to pay $347,879.44 in forfeiture and a restitution payment of $305,800 to Polar. Sentencing is scheduled for May 7.

Llewellyn served as Polar's vice president of operations, system performance and quality. From 2009 to 2021, he and nine other individuals participated in a scheme to defraud the airline by accepting huge sums of money in kickbacks from various vendors in exchange for making sure that the vendors "received favorable business arrangements with Polar," the U.S. Attorney's Office said.

Llewellyn along with three of the co-defendants held "secret ownership interest in certain Polar vendors." As a result, they "reaped substantial financial benefits" from the kickback scheme, the U.S. Attorney's Office said. The executives received around $23 million in payments for giving the vendors business with Polar, ultimately affecting at least 10 customers and vendors and leading to "pervasive corruption of Polar's business."