Arrested Huawei CFO makes appearance in Canadian court as U.S. seeks extradition

Arrested Huawei CFO makes appearance in Canadian court as U.S. seeks extradition

She allegedly falsely told banks that Huawei was a separate company from SkyCom Tech so that banks would approve transactions that violated sanctions against Iran.

A senior Chinese telecoms executive committed fraud when she lied about links between Huawei and a shell company used to sell telecommunications equipment to Iran in breach of U.S. sanctions, Canadian prosecutors have told a Vancouver court.

She allegedly assured United States banks that Huawei and Skycom were different companies but prosecutors say they were one and the same.

SkyCom's alleged sanctions breaches occurred from 2009 to 2014. "Skycom employees were Huawei employees".

In a packed Vancouver courtroom, Crown attorneys argued that Meng's family's vast financial resources - and the prospect of up to 30 years in an American prison - provided her with ample incentive to flee if granted bail.

He said one of the glaring deficiencies in the allegations is that the summary of the case doesn't differentiate between time periods.

Her legal team also pointed out that while SkyCom was once a subsidiary, Huawei divested from the company and Meng vacated her seat on SkyCom's board of directors. Martin told the court the PowerPoint presentation his client delivered to the bank is supposed to be evidence of fraud, but that claim is "preposterous".

ZTE, China's second-largest telecommunications equipment maker behind Huawei, was facing crippling penalties last Spring for violating Iran sanctions.

Meng faces charges of fraud in the U.S. for allegedly misrepresenting Huawei's relationship with Hong Kong-based Skycom, according to evidence read in court on Friday.

Chinese Tech Exec Faces 30 Years in Prison in U.S., Canadian Prosecutor Says
Arrested Huawei CFO makes appearance in Canadian court as US seeks extradition

If she is released on bail, she would likely have to surrender her passport and submit to electronic monitoring until she is discharged or surrendered for trial to the United States.

He said Meng's personal integrity would not allow her to go against a court order, and that she would not embarrass her father and company founder by breaching such an order. He said her actions exposed the banks to potential fines for violating US sanctions.

He said that the daughter of Huawei founder Ren Zhengfei had substantial financial resources and was a flight risk.

She was arrested at Vancouver Airport on Saturday after a request by the United States. However, the court heard from a crown lawyer that Huawei controls Skycom.

In an interview with the Australian Financial Review, former Central Intelligence Agency chief Michael Hayden said there is evidence that Huawei spies for Beijing. It's alleged that they did not know that they were in effect doing business with Iran and could have faced severe financial consequences, Gibb-Carsley said.

Chinese Foreign ministry spokesman Geng Shuang said on Friday that neither Canada nor the United States had provided China any evidence that Meng had broken any law in those two countries, and reiterated Beijing's demand that she be released.

CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks - although White House trade advisor Peter Navarro has denied any link to the dialogue.

Huawei is the biggest global supplier of network gear used by phone and internet companies, and has been the target of deepening US security concerns.

The U.S. sees Huawei and smaller Chinese tech suppliers as possible fronts for Chinese spying and as commercial competitors. He said Meng would agree to wear an ankle monitor. Canadian President Justin Trudeau denied any political motivation and said that his government had no involvement with the police action or the judicial proceedings.