Fine, we'll do it the Huawei, says Uncle Sam: CFO charged with fraud, faces extradition to US over Iran trade claims

Chinese telco box maker also accused of stealing trade secrets from T-Mobile USA


Huawei and its chief financial officer Meng Wanzhou were charged with fraud on Monday by US prosecutors over their alleged sanction-busting dealings with an Iranian subsidiary.

It's claimed Meng, the daughter of Huawei founder Ren Zhengfei, tried to cover up the Chinese tech giant's business operations in Iran. Huawei was also separately accused of stealing T-Mobile USA trade secrets, specifically details of a phone-testing robot called Tappy. Meng and Huawei deny any wrongdoing.

Meng, a Chinese citizen, was arrested in December in Canada at the request of US officials, who say she hid from Uncle Sam and a top bank multimillion-dollar transactions between Huawei's American and Iranian subsidiaries, Huawei Device USA and Skycom Tech, respectively.

The White House has imposed various economic sanctions against Iran, cracking down on the Mid-East nation's oil exports, banking, and so on. Meng, 46, has been charged with multiple counts of bank fraud, wire fraud, and conspiracies to commit bank and wire fraud, by allegedly busting the aforementioned US sanctions by conducting business in Iran via Huawei's American arm.

Documents filed in a New York federal district court allege that Meng and Skycom, which is registered in Hong Kong but operates in Iran, handled millions of dollars in deals and orders with the Iranians in violation of these sanctions. American prosecutors have called for her extradition from Canada to face trial in the US. Huawei and Huawei USA have also been charged with obstructing justice by allegedly misreporting their relationship with Skycom.

question_marks_648

Senior UK.gov ministers asked: So, are we going to ban Huawei or what?

READ MORE

In a separate legal challenge, in Washington state, Huawei is accused of stealing trade secrets from T-mobile USA. The Chinese titan, allegedly, used cash bonuses to encourage its own employees to steal information about T-Mob's smartphone-testing robot Tappy.

Huawei engineers, it is claimed, violated confidentiality and non-disclosure agreements with the American mobile carrier by secretly taking photos of the robot, and even stealing a piece of it so it could be replicated.

“For over a decade, Huawei employed a strategy of lies and deceit to conduct and grow its business. This Office will continue to hold accountable companies and their executives, whether here or abroad, that commit fraud against US financial institutions and their international counterparts and violate US laws designed to maintain our national security,” said Richard Donoghue, US attorney for the Eastern District of New York.

The indictments come at a time when relations between the US and China have been derailed by the ongoing tit-for-tat trade tariff spat between both countries. Huawei also faces claims its kit has been backdoored by Beijing's intelligence agencies to spy on other nations and their corporations. Huawei denies the accusations. Meanwhile, one of its sales directors was arrested by Polish authorities this month on suspicion of spying. ®

Similar topics

Narrower topics


Other stories you might like

  • Venezuelan cardiologist charged with designing and selling ransomware
    If his surgery was as bad as his opsec, this chap has caused a lot of trouble

    The US Attorney’s Office has charged a 55-year-old cardiologist with creating and selling ransomware and profiting from revenue-share agreements with criminals who deployed his product.

    A complaint [PDF] filed on May 16th in the US District Court, Eastern District of New York, alleges that Moises Luis Zagala Gonzalez – aka “Nosophoros,” “Aesculapius” and “Nebuchadnezzar” – created a ransomware builder known as “Thanos”, and ransomware named “Jigsaw v. 2”.

    The self-taught coder and qualified cardiologist advertised the ransomware in dark corners of the web, then licensed it ransomware to crooks for either $500 or $800 a month. He also ran an affiliate network that offered the chance to run Thanos to build custom ransomware, in return for a share of profits.

    Continue reading
  • China reveals its top five sources of online fraud
    'Brushing' tops the list, as quantity of forbidden content continue to rise

    China’s Ministry of Public Security has revealed the five most prevalent types of fraud perpetrated online or by phone.

    The e-commerce scam known as “brushing” topped the list and accounted for around a third of all internet fraud activity in China. Brushing sees victims lured into making payment for goods that may not be delivered, or are only delivered after buyers are asked to perform several other online tasks that may include downloading dodgy apps and/or establishing e-commerce profiles. Victims can find themselves being asked to pay more than the original price for goods, or denied promised rebates.

    Brushing has also seen e-commerce providers send victims small items they never ordered, using profiles victims did not create or control. Dodgy vendors use that tactic to then write themselves glowing product reviews that increase their visibility on marketplace platforms.

    Continue reading
  • Oracle really does owe HPE $3b after Supreme Court snub
    Appeal petition as doomed as the Itanic chips at the heart of decade-long drama

    The US Supreme Court on Monday declined to hear Oracle's appeal to overturn a ruling ordering the IT giant to pay $3 billion in damages for violating a decades-old contract agreement.

    In June 2011, back when HPE had not yet split from HP, the biz sued Oracle for refusing to add Itanium support to its database software. HP alleged Big Red had violated a contract agreement by not doing so, though Oracle claimed it explicitly refused requests to support Intel's Itanium processors at the time.

    A lengthy legal battle ensued. Oracle was ordered to cough up $3 billion in damages in a jury trial, and appealed the decision all the way to the highest judges in America. Now, the Supreme Court has declined its petition.

    Continue reading

Biting the hand that feeds IT © 1998–2022