Prison time for Chinese nationals convicted of defrauding Goodye - Cleveland 19 News Cleveland, OH

Prison time for Chinese nationals convicted of defrauding Goodyear

(Source: WOIO) (Source: WOIO)
CLEVELAND, OH (WOIO) -

Two Chinese nationals were each sentenced to more than two years in prison for defrauding Goodyear Tire & Rubber Company out of $1.5 million.

Xin Franco Fan and Rex Xu Yu pleaded guilty earlier this year to conspiracy to commit wire fraud and honest services wire fraud. Both were sentenced to 27 months in prison and ordered to pay $1.5 million in restitution.

Both men were employees of Goodyear Orient Company (Private) Limited, or GOCPL, a subsidiary of Goodyear, located in Singapore and with offices in China. GOCPL 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. Fan was Yu’s manager, according to court documents.

Fan, Yu and others incorporated or caused to be incorporated overseas shell companies in which they held a financial interest. Fan, Yu and others caused Goodyear to purchase natural rubber from these shell companies. They also required Goodyear suppliers to use loading companies in which they had a financial interest. This took place between 2013 and 2016, according to court documents.

Fan and Yu will be deported upon their release.

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