News / Polar Air Cargo's Carlton Llewellyn jailed for role in 'kickback' scheme

Carlton Llewellyn, former VP operations, system performance and quality for Polar Air Cargo, has been jailed for his “mid-level” role in the Polar corruption case. 

Mr Llewellyn admitted conspiracy to commit wire fraud, but claimed he had got involved in the scheme because he felt he had been underpaid in comparison with other executives.  

While the government pushed for a sentence of one year and a day, Mr Llewellyn received a sentence of six months’ imprisonment, which begins on 15 January. But he then faces six months of home detention, enforced by GPS monitoring, and a further three years of supervised release. 

Polar Air Cargo suffered some $32m in losses owing to the kickback scheme developed by several executives. However, Mr Llewellyn’s part in the scheme benefited him to the tune of $347,879.44, related to kickbacks to a trucking vendor which was registered under his and other defendants’ family names. He must now forfeit that amount, and pay $100 in penalties. 

Mr Llewellyn was also involved in another kickback company, A-1 Handling, which accounted for $305,000 of the loss to Polar. However, by the time the scheme was uncovered in July 2021, Mr Llewellyn had yet to receive his share of the money. 

A-1 Handling was selected as Polar’s handling agent in Los Angeles, despite concerns from other Polar employees that A-1’s bid was $1.5m more than Polar’s existing supplier and that A-1 had “limited experience… seems to be over their heads …and are most expensive by far”. A-1 earned some $5m from the handling contract between 2020 and 2021.  

The government stated in its sentencing memorandum: “While the defendant did not sit atop the various kickback schemes, joining the conspiracy later in time, he played an important role in ensuring their continued operation and success. The defendant was significantly involved in the selection of A-1 Handling and the promotion of an exclusive contract with the trucking vendor before the fraud conspiracy was discovered. 

“The defendant contends that he engaged in the fraud conspiracy, in part, because he was upset by what he perceived to be his under-compensation when compared with his Polar colleagues over the years.” 

Between 2009 and July 2021, when the fraud was discovered, the Polar executives involved in the scheme received more than $23m in unlawful payments. 

Lars Winkelbauer, who appeared to be the leader of the scheme, received a four-year sentence.