Huawei exec faces United States fraud charges linked to Iran, court hears

Lester Mason
December 8, 2018

During her bail hearing, a prosecutor for the Canadian government said US charges against her have to do with Huawei using an unofficial subsidiary to access the Iran market in dealings that would contravene USA sanctions.

Meng is accused to have previously insisted the two were separate companies. While there is some fear that the arrest could hurt talks between the USA and China to end the current trade war between the two countries, Canadian prosecutors have called Ming a flight risk and have requested that the court place her in a detention center.

Hong Kong-based SkyCom's alleged sanctions breaches occurred from 2009 to 2014.

Meng, the chief financial officer of Huawei, was arrested Saturday while in transit at Vancouver's airport.

"Meng being released on $1 million bail would be like asking upper middle class Canadian family to cough up $136", she paraphrased the Crown as explaining, before noting that Meng's "father has a net worth of $3.2bn".

The prosecutor said at the bail hearing for Meng Wanzhou that she has vast resources and would be motivated to flee Canada and return home to China.

The company has said it is not aware of any wrongdoing by Meng.


"The Chinese government should seriously mull over the United States tendency to abuse legal procedures to suppress China's high-tech enterprises", said the nationalist tabloid Global Times in an editorial.

CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks - although White House trade advisor Peter Navarro has denied any link to the dialogue.

Canada is one of more than 100 countries that have an extradition treaty with the United States, requiring it to cooperate with US Department of Justice requests to hand over suspects.

Meng, who takes her last name from her mother, received a master's degree from Huazhong University of Science and Technology in Wuhun, China, and started in a low-level position at Huawei in 1993 when she in her 20s.

We'll soon know if the Canadian courts are amenable to that argument.

In January 2013, Reuters reported that Skycom, which attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator, had much closer ties to Huawei than previously known.

"Huawei is SkyCom. This is the alleged fraud", Canadian prosecutor John Gibb-Carsley said.

Other reports by Iphone Fresh

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