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RSS FeedsBail hearing for Huawei exec reveals fraud allegations at heart of international strife
(The Star Toronto Raptors)

 
 

8 december 2018 05:20:03

 
Bail hearing for Huawei exec reveals fraud allegations at heart of international strife
(The Star Toronto Raptors)
 


VANCOUVER—A five-year-old PowerPoint presentation is at the centre of criminal allegations against the chief financial officer of Chinese-owned tech giant Huawei in a case that has implications for international relations, trade and the future of Canada’s telecommunications infrastructure.Meng Wanzhou was taken into custody on Dec. 1 at the Vancouver airport. The arrest, carried out at the request of authorities in the United States, has infuriated the Chinese government and worsened pre-existing tensions between the two global heavyweights.On Friday, the first day of Meng’s bail hearing at the B.C. Supreme Court in Vancouver, Crown prosecutors revealed the nature of the claims for the first time. A warrant from the Eastern District of New York alleges Meng knew Huawei was operating a company called SkyCom to do business with Iran, which has been subject to U.S. sanctions since 1979.The U.S. authorities allege Meng committed fraud by telling an HSBC executive her company was in compliance with U.S. sanctions against Iran limiting communication technology. The meeting took place in 2013, but the location was not revealed.Meng, wearing a green sweater, appeared relaxed in the courtroom, even sharing a laugh with her lawyer before the hearing began. A man who appeared to be her husband, Liu Xiaozong, gave her a thumbs up as she looked back at the gallery. When StarMetro approached the man during a break and asked whether he was Meng’s relative, he held up his palm as lawyers whisked him away. U.S. authorities argue Meng broke the law when she told the banker that Huawei and SkyCom, another telecommunications company, were separate entities.In court on Friday, the Crown presented affidavits detailing information from U.S. law-enforcement officials saying former SkyCom employees told them the two companies were operating as one, including using Huawei employees to manage SkyCom in Iran.“The allegation is SkyCom is Huawei,” said Cro ...


 
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