Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
October 20, 2016 02:00 AM

Chinese nationals jailed for Goodyear fraud

European Rubber Journal Report
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    AKRON—Two Chinese nationals were sentenced to 27 months in prison for defrauding Goodyear Tire & Rubber Co. out of $1.5 million, according to a report by the U.S. Department of Justice.

    Xin Franco Fan and Rex Xu Yu pleaded guilty earlier this year to conspiracy to commit wire fraud and honest services wire fraud. In addition to their prison sentences, they were ordered to pay $1.5 million in restitution.

    The two men were employees of Goodyear Orient Co. Ltd (GOCPL), a subsidiary of Goodyear in Singapore and with offices in China, which manages all of the natural rubber purchasing, delivery, financing and quality certifications for Goodyear's global operations.

    Goodyear, through GOCPL, spends approximately $1 billion annually to acquire natural rubber for its operations.

    According to the report, the two men caused Goodyear to purchase natural rubber from shell companies in which they had an interest.

    Between 2013 and 2016, the pair also required Goodyear suppliers to use loading companies in which they had a financial interest.

    Fan and Yu were arrested Feb. 19 while attending meetings at Goodyear headquarters in Akron. They were arraigned Feb. 25 in Youngstown federal district court, and formally charged with conspiracy to commit wire fraud and honest services wire fraud in Cleveland federal district court June 21.

    Both men will be deported upon their release.

    As a condition of their employment, they were obligated to act in the best interests of Goodyear when purchasing natural rubber.

    In 2015, Goodyear received an anonymous tip that Fan and Yu were receiving kickback payments in connection with GOCPL's raw materials purchases.

    Related Articles
    Chinese nationals charged in U.S. for defrauding Goodyear
    Two former Goodyear employees face multiple fraud charges
    Goodyear teams up with Case Western
    Goodyear to boost capacity at multiple facilities
    Goodyear fined more than $1 million for deaths at Danville, Va., plant
    Goodyear to contest citations at Danville site
    Goodyear to close German tire plant
    Goodyear breaks ground on Chinese plant expansion
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Michelin worker dies at Nova Scotia tire plant
    2
    Triangle Tire scraps plans for North Carolina tire plant
    3
    Mitsubishi Chemical closes compounding plant in Michigan
    4
    Morgan Polymer Seals adds MAGIC to gasket manufacturing
    5
    Shell Polymers' PE facility in Pa. nearly complete
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION