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Press Release

Two Chinese nationals charged with defrauding Goodyear

For Immediate Release
U.S. Attorney's Office, Northern District of Ohio

Xin Franco Fan, 40, and Rex Xu Yu, 41, two Chinese nationals, were arrested and charged on February 19, 2016 with wire fraud and honest services wire fraud for defrauding Goodyear, said FBI Special Agent in Charge Stephen D. Anthony and Acting U.S. Attorney Carole S. Rendon.

"The FBI takes its responsibility to aggressively protect US companies from the vulnerabilities associated with operating overseas seriously, including significant fraud as alleged in this investigation," Anthony said. "Individuals who participate in fraud schemes should not underestimate the resolve of the FBI to work closely with companies such as Goodyear to root out these schemes and bring the perpetrators to justice."

"These two defendants were engaged in a multi-year scheme designed to steal tens of thousands of dollars from Goodyear," Rendon said. "Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of their quick action, we are now able to hold these men accountable for their conduct."

According to a criminal complaint, Fan and Yu 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.

As a condition of their employment, Fan and Yu are 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. With the cooperation of Goodyear executives, an investigation into the matter led to a complaint being filed in the Northern District of Ohio federal court and arrest warrants being issued for Fann and Yu.

A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Updated February 22, 2016

Financial Fraud