In an unwavering stance against corruption in the commercial sector, the U.S. Attorney's Office for the Southern District of New York has seen Skye Xu, a cargo airline operator, sentenced to two years of imprisonment for his role in a large-scale kickback scheme aimed at defrauding Polar Air Cargo Worldwide Inc., according to the Department of Justice.
U.S. Attorney Jay Clayton brought to light the details of the case, unearthing Xu's actions during the peak of the COVID-19 pandemic wherein he shelled out about $4.4 million in bribes to executives at Polar to secure business benefiting his company, Sky X Airlines LLC; these fraudulent deeds did not go unnoticed as they ultimately cost Polar more than $32 million in lost revenue, according to court documents and the sentencing announcement.
Xu's engagement in this dishonest enterprise spanned from November 2020 to July 2021, and he has been charged with multiple offenses including conspiracy to commit wire fraud and money laundering, "During the COVID-19 pandemic, Skye Xu paid approximately $4.4 million in kickbacks to Polar executives to obtain highly lucrative business from Polar," Clayton said while emphasizing that this type of corruption incurs costs far beyond just one company’s financial loss, as per the U.S. Attorney's Office.
The larger scope of this corruption web spun by Xu alongside Polar's senior executives affected nearly all areas of the cargo airline's operations; with at least ten customers and vendors also involved, the illicit exchange of financial favors had been undermining the company since as far back as 2009, and although Xu is the last of ten charged defendants to face conviction, his actions symbolize a grim period of systemic dishonesty in the cargo sector that has only just been fully exposed.
Justice has been more than a symbolic gesture, Skye Xu, 43, from West Covina, California, is obliged to face consequences beyond prison time, he is under orders to forfeit over $4.4 million and make restitution to Polar to the tune of $1.39 million, as well as undergo three years of supervised release following his incarceration, the U.S. Attorney's Office reported.
