A 13-count indictment unsealed in NY against Huawei, two of its affiliated firms, and its CFO, Meng Wanzhou, accuses Huawei and an affiliate of bank fraud, wire fraud, and violating USA sanctions on Iran. The indictment is available here and below.
Prosecutors also allege that Huawei stole trade secrets, including the technology behind a robotic device that T-Mobile used to test smartphones, prosecutors said.
"As I told high-level Chinese law enforcement officials in August, we need more law enforcement cooperation with China", acting Attorney General Matt Whitaker said at a news conference with other Cabinet officials, including Commerce Secretary Wilbur Ross and Homeland Security Secretary Kirstjen Nielsen. They also claim the company and two affiliates committed bank fraud and violated sanctions when it carried out business with Iran.
US-China trade war: The unsealed indictment days before US-China trade talks were scheduled to resume in Washington.
Meng faces charges of bank fraud, wire fraud and conspiracy to commit both bank fraud and wire fraud.
Meng was arrested in early December 2018 by Canadian authorities at the request of the United States over allegations that she had committed fraud in sidestepping sanctions. She has been detained in Vancouver, British Columbia, since on bank fraud charges related to U.S. sanctions law on Iran.
"For years, Chinese firms have broken our export laws and undermined sanctions, often using the U.S. financial system to facilitate their illegal activities", Wilbur Ross, the commerce secretary, said.
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He is facing one count of obstruction of justice, one count of witness tampering and five counts of making false statements . The indictment also paints an unflattering picture of the president's campaign.
Bad Timing for U.S. Meanwhile, a grand jury in NY has also returned an indictment alleging 13 crimes committed by Huawei, its CFO, an affiliate in Iran and one of its subsidiaries in the US.
The indictment alleges Huawei misled the United States and a global bank about its relationship with subsidiaries to conduct business with Iran.
They claimed that Huawei had sold its stake in Skycom - a sale the USA alleges was "orchestrated.to appear as an arm's-length transaction between two unrelated parties, when in fact Huawei actually controlled the company that purchased Skycom".
You may recall that Chinese telecom firm and Huawei rival ZTE illegally did business with Iran and meticulously covered it up. US security experts are concerned that the equipment could be used to spy on the United States. Her arrest led to a wave of nationalism in China, with several companies threatening to fire any employee who buys an Apple iPhone, but promising to subsidize the purchase of a Huawei handset.
Huawei also maintains that it was an isolated incident that involved two employees who acted inappropriately.
He reaffirmed that the U.S.is seeking extradition of Meng and would formally file for the extradition by Tuesday, Canada's deadline.