Ten defendants have been charged with decade-long, multi-million-dollar scheme to defraud International Cargo Airline.
According to a press release shared by the U.S. Department of Justice (DOJ), due to their hidden ownership interests in a number of Polar vendors, the executive defendants agreed to collect millions of dollars in kickbacks from the vendor defendants in exchange for securing those vendors' beneficial commercial relationships with Polar.
The fraud they committed, which implicated a sizable section of Polar's senior management and at least 10 clients and vendors of Polar, resulted in widespread corruption of Polar's business for more than ten years, affecting almost every element of the company's operations.
“As alleged, the 10 defendants charged today conducted a widespread scheme that tainted nearly every aspect of Polar Air Cargo Worldwide’s operations and that cost the company an estimated $52 million in losses," DOJ Attorney Damian Williams stated in the release. "The defendants, all of whom were either employed in high-level positions by Polar or were vendors reliant on business arrangements with Polar, allegedly showed a blatant disregard for the integrity of their companies in favor of lining their own pockets. Their pervasive fraud ends today, and each defendant now faces substantial prison time for their alleged crimes.”
Other law enforcement officials also commented on the matter.
“For more than a decade, the defendants allegedly utilized a complex set of schemes at the expense of Polar Air to line their own pockets. The indictments today serve as a reminder to any unscrupulous actors attempting complex frauds – the FBI will hold you accountable in the criminal justice system," Federal Bureau of Investigation Assistant Director Michael J. Driscoll said in the release.
Agents involved with the case were glad the long running operation is over.
“Today’s charges are the opening salvo against a decade-long scam by a small group of Polar’s executives and others that allegedly tainted every aspect of its business operations," Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas Fattorusso said in the release. "These arrests and charges today will hopefully begin the process of righting the alleged wrongs of those charged and put the company on a path to integrity, which its hardworking employees and legitimate customers deserve.”