Justice Dept. charges Huawei with fraud, ratcheting up U.S.-China tensions

29 January, 2019, 00:54 | Author: Darnell Patrick
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Huawei is also charged in a separate case with stealing trade secrets from T-Mobile, according to federal prosecutors.

Prosecutors charge Huawei used a Hong Kong shell company to sell equipment in Iran in violation of US sanctions.

In a 13-count indictment in Brooklyn, New York, the government alleged Huawei, two affiliated companies and Chief Financial Officer Wanzhou Meng of bank and wire fraud as well as conspiracy in connection with business in Iran.

A Huawei spokesman did not immediately return phone messages seeking comment.

There have also been reports by the Wall Street Journal and others that the Justice Department was nearing an indictment related to allegations that Huawei stole robotic technology from carrier T-Mobile US Inc to test smartphones' durability.


Prosecutors said that Huawei concealed its relationship with Skycom Tech Co. When T-Mobile found out and threatened to sue, Huawei falsely said the theft was done by rogue actors within the company, according to the indictment. In addition, Huawei and Huawei USA are accused of conspiring to obstruct justice.

The charges include bank fraud, conspiracy to commit wire fraud and violating the International Emergency Economic Powers Act.

Acting Attorney General Matt Whitaker says the department is proceeding with its extradition efforts against Meng, who was detained December 1 at the request of the US upon arriving at the airport in Vancouver.

The U.S.is asking that the Canadian authorities extradite Meng. Meng is free in Vancouver, staying at her $4.2 million mansion with Global Positioning System monitoring, after posting bail of $10 million as she fights extradition to the U.S.to face criminal charges. She was granted bail 10 days after her arrest. Huawei engineers allegedly violated confidentiality and non-disclosure agreements by taking pictures of Tappy, taking measurements of parts of the robot and stealing a piece of it. A bipartisan group of USA lawmakers introduced bills in January that would ban the sale of US chips or other components to Huawei, ZTE Corp or other Chinese telecommunications companies that violate US sanctions or export control laws.

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