Could it be that the Trump administration has the ace-in-the-hole when it comes to forcing the hand of China? Could it be that China is finally caught due to Huawei?
There is 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.
Could it be that European countries that are pressing to stay in the JCPOA deal with Iran could eventually be implicated as well?
BROOKLYN, N.Y. – A 13-count indictment was unsealed earlier today in federalcourt in Brooklyn, New York, charging four defendants, all of whom are affiliated withHuawei Technologies Co. Ltd. (Huawei), the world’s largest telecommunications equipmentmanufacturer, with headquarters in the People’s Republic of China (PRC) and operationsaround the world. The indicted defendants include Huawei and two Huawei subsidiaries—Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) —as well as Huawei’s Chief Financial Officer (CFO) Wanzhou Meng (Meng).The defendants Huawei and Skycom are charged with bank fraud and conspiracyto commit bank fraud, wire fraud and conspiracy to commit wire fraud, conspiracy todefraud the United States, conspiracy to violate and substantive violations of theInternational Emergency Economic Powers Act (IEEPA), and conspiracy to commitmoney laundering. Huawei and Huawei USA are charged with conspiracy to obstructjustice related to the Grand Jury investigation in the Eastern District of New York. Mengis charged with bank fraud, wire fraud, and conspiracy to commit bank and wire fraud.“As charged in the indictment, Huawei and its subsidiaries, with the direct andpersonal involvement of their executives, engaged in serious fraudulent conduct,including conspiracy, bank fraud, wire fraud, sanctions violations, money laundering andthe orchestrated obstruction of justice,” stated United States Attorney Donoghue. “Forover a decade, Huawei employed a strategy of lies and deceit to conduct and grow itsbusiness. This Office will continue to hold accountable companies and their executives,whether here or abroad, that commit fraud against U.S. financial institutions and theirinternational counterparts and violate U.S. laws designed to maintain our nationalsecurity.” Mr. Donoghue thanked the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Department of Commerce Office of Export Enforcement and the Defense Criminal Investigative Service agents who areinvestigating this case for their tireless work and dedication.“These charges lay bare Huawei’s blatant disregard for the laws of our countryand standard global business practices,” stated FBI Director Wray.“Companies like Huawei pose a dual threat to both our economic and national security, and the magnitude of these charges make clear just how seriously the FBI takes this threat. Today should serve as a warning that we will not tolerate businesses that violate our laws, obstruct justice, or jeopardize national and economic well-being.”“As charged in the indictment, Huawei and its Chief Financial Officer broke U.S.law and have engaged in a fraudulent financial scheme that is detrimental to the securityof the United States,” stated U.S. Department of Homeland Security Secretary Nielsen.“They willfully conducted millions of dollars in transactions that were in direct violationof the Iranian Transactions and Sanctions Regulations, and such behavior will not betolerated. The Department of Homeland Security is focused on preventing nefariousactors from accessing or manipulating our financial system, and we will ensure thatlegitimate economic activity is not exploited by our adversaries. I would like to thankICE Homeland Security Investigations for their exceptional work on this case.”“For years, Chinese firms have broken our export laws and undermined sanctions,often using the U.S. financial systems to facilitate their illegal activities,” stated U.S.Department of Commerce Secretary Ross.
(Reuters) – Huawei executive Meng Wanzhou, who was arrested in Canada and faces possible extradition to the United States, is exploring a defense that claims U.S. charges against her are politically motivated, the Globe and Mail newspaper reported on Monday.
Meng, the chief financial officer of China’s Huawei Technologies Co Ltd, is the central figure in a high-stakes dispute between the United States and China. Canada arrested Meng in December at the request of the United States and last month she was charged with wire fraud that violated U.S. sanctions on Iran.
“The political overlay of this case is remarkable,” Richard Peck, lead counsel for Meng, told the Toronto newspaper in a telephone interview.
“That’s probably the one thing that sets it apart from any other extradition case I’ve ever seen. It’s got this cloud of politicization hanging over it,” Peck added.