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Huawei Executive participated in sanctions fraud, prosecutors say

December 7, 2018 World 0 Views VANCOUVER, British Columbia – The reason that the United States asked the Canadian authorities…

VANCOUVER, British Columbia – The reason that the United States asked the Canadian authorities to arrest a leading chief of the Huawei technology company last week had been concealed in mystery.

On Friday the details of the arrest and what led to it came out in a Canadian courtroom.

At a civil court in Vancouver for Meng Wanzhou, Huawei, the CFO and a daughter of the company’s founder, Canadian prosecutors said she was accused of fraud. The heart of the charges relates to how Ms. Meng may have personally participated in a system to trick US financial institutions to conduct transactions that violated the United States sanctions against Iran, they said.

Ms. Meng had “direct involvement” with Huawei’s representations to banks, “said John Gibb-Carsley, a lawyer with Canada’s Justice Department.

The hearing revealed an event that has shifted the relationship between the United States and China. While exchanging aircraft in Vancouver on December 1, Meng was arrested at the United States request, which for years has looked at potential links between Huawei and the Chinese government or the Communist Party.

Her accusation occurred as the United States States and China are in the process of opening negotiations to end a brutal trade war. Due to Ms. Meng’s resurrection in China as a leader and part of her elite, news about her arrest has shrunk throughout the country.

With Ms. Meng, 46, who is inside a glass box in the British Columbia Supreme Court, sir. Gibb-Carsley put forward what led to her arrest. He said that between 2009 and 2014 Huawei used a Hong Kong company called Skycom Tech to do transactions in Iran and do business with telecom companies there, contrary to US sanctions against Iran. Banks in the United States cleared financial transactions for Huawei, accidentally doing business with Skycom, he said.

The banks were “victim institutions” for the fraud of Ms. Meng, said Gibb-Carsley.

In 2013, articles from Reuters argued that Huawei used Skycom to do business in Iran and had attempted to import US-based computer equipment to the country, contrary to sanctions. Several financial institutions asked Huawei if allegations were true, said Gibb-Carsley.

At that time, Meng Meng arranged a meeting with an executive director from one of the financial institutions, he said. During the meeting, she spoke through an English interpreter and featured PowerPoint images in Chinese and said that Huawei worked in Iran in accordance with US sanctions. Ms. Meng explained that Huawei’s involvement with Skycom was part of normal business operations and that Huawei once held shares in Skycom but then had sold them.

But there was no difference between Skycom and Huawei, “said Gibb-Carsley. Huawei operated Skycom as an unofficial subsidiary, and made efforts to keep in touch between the companies secret.

Skycom employees used Huawei email addresses and had labels and stationery with the Huawei logo, he said. Skycom documents showed that a unit to which the company was sold in 2009 was also controlled by Huawei until at least 2014, according to a statement in court.

Ms. Meng’s presentation to the named financial institution constituted fraud, said Gibb-Carsley.

A warrant for Ms. Meng’s arrest was issued in the eastern district of New York on August 22, he added. A Canadian justice then issued a voice for Ms. Mix on November 30 after it became known that she would change airplanes in Vancouver on their way from Hong Kong to Mexico.

Marc Raimondi, a spokesman for the United States Department of Justice, refused to comment on charges revealed in court on Friday.

The accusations against Ms. Meng and Huawei are similar to those of the United States Government in 2016 against ZTE, another major Chinese technology company. In that case, US officials released internal ZTE documents, where managers had described creating “cutoff companies” who would do business with Iran, North Korea and other nations sanctioned by the US government.

Mr. Gibb-Carsley argued against the castle of Ms. Meng. He said she had no strong ties in Canada and had major financial resources and that China had no extradition agreements with the United States or Canada.

A lawyer for Ms. David Martin offered two properties in Vancouver and a cash deposit to secure her deposit. Ms. Meng would not break a court order, Martin said. To do so, he admitted, would “humiliate and spoil his father as she loves” and embarrass Huawei’s thousands of employees. Ms. Meng’s father is Ren Zhengfei, founder of Huawei.

“She would not spoil China itself,” says Martin.

The referee in the goal is slated to control the request for the sponsor later on Friday. [19659002] Any extradition process may take weeks or months, depending on the country’s rules that arrest suspiciously and, if suspected, choose to fight the extradition request. The United States Department of Justice must now submit evidence to the Canadian Court that supports its request and has 60 days from the arrest to make a complete request for extradition.

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