US Prosecutors Unveil Money Laundering, Fraud Charges Against Huawei
Federal prosecutors in Brooklyn have unsealed a 13-count indictment alleging Chinese telecommunications giant Huawei Technologies took part in a long-running scheme in which it deceived the U.S. government about its business dealings with Iran.
January 28, 2019 at 06:13 PM
3 minute read
The original version of this story was published on New York Law Journal
Federal prosecutors in Brooklyn have unsealed a 13-count indictment against the Chinese telecommunications giant Huawei Technologies, alleging the company took part in a long-running scheme in which it deceived the U.S. government about its business dealings with Iran.
The U.S. Attorney's Office for the Eastern District of New York alleges that Huawei, the company's subsidiaries in the U.S. and Iran and Wanzhou Meng, the company's chief financial officer, lied to the U.S. government and global financial institutions about Huawei's ties to Skycom, an unofficial subsidiary in Iran.
Federal prosecutors in the Western District of Washington in Seattle also allege that Huawei stole trade secrets from T-Mobile USA—specifically a robotic testing system for its phones.
Huawei relied on banking partners to move Skycom-related transactions through the U.S., the U.S. attorney's office alleges, which violated laws that generally prohibit transactions in American dollars that are related to Iran.
Huawei and Skycom are charged with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, conspiracy to defraud the United States, conspiracy to violate and substantive violations of the International Emergency Economic Powers Act and conspiracy to commit money laundering.
“For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business,” said Eastern District U.S. Attorney Richard Donoghue in a news release.
Prosecutors allege that Huawei orchestrated a 2007 sale of its interest in Skycom to a third party that was actually controlled by Huawei.
Huawei's press office did not immediately respond to a request for comment.
The release states that one financial institution processed $100 million worth of Skycom-related transactions through the U.S. from 2010 to 2014.
A spokesman for the U.S. attorney's office said that counsel for the defendants has not been disclosed publicly.
Meng, 46, was arrested in Canada in December and the U.S. is seeking her extradition, according to the release. She is charged with bank fraud, wire fraud, and conspiracy to commit bank and wire fraud.
The case has been assigned to Judge Ann Donnelly of the U.S. District Court for the Eastern District of New York.
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