Huawei CFO Accused of Fraud for Hiding Business Relations With Iran, Court Hears

Margaret Wollensak
By Margaret Wollensak
December 7, 2018News
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Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei, is wanted on alleged fraud charges in the United States, her bail hearing was told.

Meng is accused of committing fraud because she told banks in the United States that Huawei and Skycom, a Hong Kong-based company reportedly doing business with Iran, have no connections. However, the court heard from a crown lawyer that Huawei controls Skycom.

Meng, 46, was initially granted a publication ban by the B.C. Supreme Court, which was subsequently lifted ahead of her hearing.

She was arrested in Vancouver on Dec. 1, and is sought for extradition by the United States. The United States issued her arrest warrant on Aug. 22, and BC issued a provincial arrest warrant for her on Nov. 30.

In making their case for denying her bail, crown lawyers said Meng has no meaningful connections to Vancouver, and that her massive resources make the amount of her bail pledge irrelevant. Meng’s “extensive pattern of dishonesty” was cited as another reason to deny her bail, as was the fact that she stopped traveling to the United States after learning about the investigation into her case.

Meng’s alleged offence could result in a maximum sentence of 30 years in jail.

The crown compared Meng’s case to that of Su Bin, a Chinese businessman accused of stealing U.S. military secrets who was denied bail in a BC court in 2014, presenting the case as a precedent to also deny bail to Meng.

Canadian Prime Minister Trudeau told reporters on Dec. 6 that he had been informed of the arrest a few days ahead of it taking place. Trudeau said at the time that he had not been in contact with China or its ambassadors about the case, CBC reported.

NTD Photo
Meng Wanzhou, Executive Board Director of the Chinese technology giant Huawei, attends a session of the VTB Capital Investment Forum “Russia Calling!” in Moscow on Oct. 2, 2014. (Alexander Bibik/Reuters)

Ties to Beijing

Meng, who also goes by the names Cathy and Sabrina, is not only Huawei’s CFO but also its deputy chair of the board of directors and its founder’s eldest daughter.

Huawei CEO and founder Ren Zhengfei is a former member of China’s People’s Liberation Army (PLA), where he worked as an engineer helping to build its communications network.

The company has been under scrutiny for its ties to the Chinese regime, raising concerns in the intelligence circles about the use of its equipment for spying for Beijing.

“[Huawei] is essentially under the control of the Chinese government,” former chief of the Canadian Security Intelligence Service Ward Elcock told CBC.

The United States and Australia, both members of the Five Eyes intelligence alliance that also includes Canada, New Zealand, and the UK, have banned Huawei from their 5G networks—the next generation in wireless technology. Last month, New Zealand refused a telecom company’s request to use 5G technology from Huawei, citing national security concerns.

In the UK, BT Group announced this month it is removing Huawei equipment from its 3G and 4G mobile operations, and will not be using Huawei technology in its 5G network.

In an interview with the Australian Financial Review, former CIA chief Michael Hayden said there is evidence that Huawei spies for Beijing.

A recent article from the newspaper The Australian says that officials in Australia have received reports about Chinese spies using Huawei to infiltrate a “foreign network.”

Under China’s National Intelligence Law, Chinese organizations have to support, assis, and cooperate with state intelligence work.

The heads of six U.S. intelligence agencies, including the CIA, FBI, and NSA, have warned against using Huawei products due to security concerns.

With reporting by Cora Yu in Vancouver

From The Epoch Times

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