Published: Tue, January 29, 2019
Business | By Pearl Harrison

U.S. charges Huawei with fraud for violating Iran sanctions

U.S. charges Huawei with fraud for violating Iran sanctions

The indictment is available here and below.

In a separate case, the Justice Department unveiled a 10-count grand jury indictment in Seattle accusing Huawei of stealing trade secrets, wire fraud and obstructing justice for allegedly stealing robotic technology from T-Mobile US, whose majority shareholder is Germany's Deutsche Telekom AG. In response to a question, Acting Attorney General Matt Whitaker stated that the Mueller investigation is "close to being completed".

An indictment partially unsealed by the Justice Department accused Meng, Huawei, its affiliate in Iran, and a subsidiary in the United States of a long-running scheme to help banks evade USA sanctions on Iran.

Separately, China's Vice Premier Liu He is scheduled to hold two days of trade talks in Washington, D.C. starting on January 30.

Today's indictments come following reports that federal prosecutors had been investigating Huawei on allegations of trade secret theft from American companies. 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 face criminal charges.

Her arrest enraged China, which responded by arresting two Canadians on national security grounds. Further, as part of an investigation in the Eastern District of New York, Huawei and its USA subsidiary are charged with conspiracy to obstruct justice.

Engadget has contacted Huawei for comment.

They claimed that Huawei had sold its stake in Skycom - a sale the US alleges was " appear as an arm's-length transaction between two unrelated parties, when in fact Huawei actually controlled the company that purchased Skycom".

He said that he is concerned about Huawei devices in US telecommunications networks.

Skycom, which is based in Hong Kong did business in Iran on behalf of Huawei, he alleged.

Secretary Nielsen said that Huawei's behaviour wasn't "just illegal but also detrimental to the national security of the US" and that the United States would "not tolerate a regime that supports terrorism". Meng's arrest sparked outrage in China, which called for her immediate release and condemned the move as a USA - led effort to thwart the telecom giant and constrain China's global ambitions.

"As part of this scheme to defraud", alleges the DOJ press release, "Meng allegedly personally made a presentation in August 2013 to an executive of one of Huawei's major banking partners in which she repeatedly lied about the relationship between Huawei and Skycom".

The Huawei Technologies Co. logo is displayed at an event in Beijing last week.

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