Saturday, 15 December, 2018

Arrested Huawei CFO makes appearance in Canadian court as United States seeks extradition

Huawei CFO Meng Wanzhou who was arrested on an extradition warrant appears at her court bail hearing along with a translator in a drawing in Vancouver British Columbia Canada on December 7. Reuters Chinese Tech Exec Faces 30 Years in Prison in U.S., Canadian Prosecutor Says
Ellis Copeland | 08 December, 2018, 04:15

The company would not say why she faces extradition, but at Meng's bail hearing Friday, the Crown revealed she is wanted due to an investigation into fraud and violations against US sanctions against Iran.

Speaking at a news conference in Milan, Lavrov said the detention showed how Washington imposes its laws beyond its jurisdiction.

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. The arrest, revealed by Canadian authorities late on Wednesday, was part of a USA investigation into an alleged scheme to use the global banking system to evade US sanctions against Iran, people familiar with the probe told Reuters.

The news of Meng's arrest has roiled global stock markets on fears it could escalate a trade war between the USA and China after a truce was agreed last week between President Trump and China's leader Xi Jinping.

Gibb-Carsley said the banks were "victim institutions" of fraud by Meng.

Huawei's chief financial officer faces charges over an alleged conspiracy to defraud banking institutions.

While personal details are scant, she is married and has a son and a daughter, Huawei said.

Canadian prosecutor John Gibb-Carsley said that the telecoms giant used a subsidiary, Hong Kong-based firm Skycom, to do business with Iran, bypassing United States sanctions.

Huawei, which has confirmed Meng was arrested, said on Wednesday that "the company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng".

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The Attorney General opposed Meng's release on bail. "SkyCom is Huawei", he told the court.

According to a CNN report, the United States is claiming that Meng "covered up" violations of sanctions on Iran. Meng was arrested on December 1 while changing planes on a trip from Hong Kong to Mexico.

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.

In a statement earlier this week, Huawei said the company complies with all laws and regulations in the countries where it operates, including applicable export control, sanction laws and regulations of the United Nations, the United States and the European Union.

Meng is a prominent member of Chinese society as deputy chairwoman of the Huawei board.

Reporters in attendance tweeted details from the hearing, and noted the shocked reaction from the gathered crowd upon learning the possible severity of Meng's punishment were she to face trial and be found guilty.

For a period of time she was in charge of Huawei's successful internationalization efforts. That was about six years after the company was founded to sell phone switches. Meng's father is worth $3.2 billion. Canadian President Justin Trudeau denied any political motivation and said that his government had no involvement with the police action or the judicial proceedings.

Huawei says Ren was a standout in the Chinese military's engineering corps, retiring in 1983 when the unit disbanded.

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