Justice Department announces charges against China's Huawei

29 January, 2019, 02:56 | Author: Mary Valdez
  • Darryl Dyck  AP FILE

A 13-count indictment was unsealed Monday in NY charging Huawei, two of its affiliates and Meng Wanzhou, a top executive at the company.

Whitaker said Huawei engineers had violated confidentiality agreements by "secretly taking photos of the robot, measuring it, and even stealing a piece of it". A grand jury in the Eastern District of NY returned charges of conspiracy to obstruct justice against Huawei and Huawei USA.

The Justice Department has unsealed a 13-count indictment in the Eastern District of NY charging Chinese telecom giant Huawei, its US and Iranian subsidiaries and its Chief Financial Officer Meng Wanzhou with financial fraud, sanctions violations, obstruction of justice and other charges.

Meng was arrested in early December 2018 by Canadian authorities at the request of the United States over allegations that she had committed fraud in sidestepping sanctions.

News of the charges comes just as the White House is making plans for a team of high-level economic advisers to meet a delegation from China later this week to talk trade between the two countries.

The charges in both cases add to USA pressure on Huawei, the world's biggest telecommunications equipment maker. As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law. She is the CFO and deputy chairwoman of Huawei Technologies as well as the daughter of the company's founder, Ren Zhengfei.

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The announcement includes a 10-count grand jury indictment in Seattle, and a separate 13-count case from prosecutors in the Eastern District of NY.

Huawei is the world's biggest supplier of network gear used by phone and internet companies.

Behaviors cited by prosecutors in the T-Mobile case indicate that offenses took place from 2012 to 2014, and that Huawei in July 2013 sent out an internal email that "was offering bonuses to employees who succeeded in stealing confidential information from other companies". A jury in Seattle ruled that Huawei had misappropriated the robotic technology from T-Mobile's lab in Washington state.

The Huawei case has set off a diplomatic spat with the three nations, which has threatened to complicate ties between the United States and Canada. Apart from the trade dispute, the USA and China are also competing for control over 5G infrastructure, which both countries believe is key to their economic and military success.

China detained two Canadians shortly after Meng's arrest in an apparent attempt to pressure Canada to release her.

David Martin, Meng's lawyer in Canada, didn't immediately respond to a message seeking comment. After being nabbed in Vancouver, Canada, Meng posted a huge bail and awaits extradition to the U.S. Her next court appearance in Canada is scheduled for February 6th.

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