News / DHL/Polar exec extradited from Thailand to face conspiracy charges in US

Lars Winkelbauer, the former DHL executive and COO of Polar Air, was last month extradited from Thailand to the US, where he faces felony charges.

Nine other accused Polar executives are already in the US, facing charges including conspiracy to commit wire fraud and money laundering. Each charge carries a maximum sentence of 20 years in prison. The trial is set for October 2024.

Mr Winkelbauer was indicted after his return from Thailand, with bail set at $750,000 and electronic monitoring, for which he has to pay. He cannot talk to his co-defendants, witnesses or alleged victims; he can’t open bank accounts and has had to surrender both his German and US passports and other travel documents. He can only travel in the southern and eastern districts of New York and the eastern and western districts of Louisiana, where he is living with the bond co-signer, in Franklin.

While the original lawsuit revealing the alleged criminality by forwarder Cargo on Demand, which had paid out some $4m in “consultation fees” to companies with ties to Polar executives, was dismissed, it had the opportunity to amend its claim.

However, last month the forwarder told the court it believed the “most prudent course of action at this time is to focus on pursuing its remaining state law claims in state court, rather than attempting to amend its RICO claims”. The judge dismissed its bid to defer the case pending resolution of the criminal proceedings.

Meanwhile, Polar is facing two other lawsuits, this time for negligence.

Last month, insurance company Roanoke and ICAT Logistics claimed Polar had failed to deliver, in good condition, crates of machinery and software from Massachusetts to Hong Kong in July 2021 – the same month some of the Polar executives named in the fraud charges were “cleared out” of the airline.

Roanoke had to pay $122,133.44 to cover the costs of damaged cargo and is now trying to recoup it, as well as interest, costs and attorney fees.

Meanwhile in May, Ascent Global Logistics sued Polar over the loss of some 40 tons of pork collar and belly sent from Cincinnati/Northern Kentucky to Incheon in February 2022.

South Korean Customs requires all imported chilled pork must be sealed on the outside of the ULDs, which the forwarder claims wasn’t done in three separate flights. South Korea refused the cargo entry and the pork was destroyed.

Ascent paid the shipper, Smithfield, $289,596 and wants to recoup the cost. Polar claims it is not liable.

Polar shareholders Atlas Air and DHL have not commented on the alleged fraud, which it is claimed, went on for seven years.

Mr Winkelbauer became Polar’s COO in 2018, reporting to Atlas CEO Bill Flynn. After he left Polar, he became an advisor to Vietnamese start-up airline IPP Air Cargo – which abandoned plans for take-off in October last year.