U.S. will drop fraud charges against Huawei’s top executive

. (*_ Prosecutors in the Eastern District of New York said Friday they would drop wire and bank fraud charges against Huawei Technologies chief financial officer. They also removed an extradition request to hold her, if she agrees to a deferred prosecution arrangement.

Meng Wanzhou, the daughter of Huawei founder Ren Zhengfei, admitted that she attempted to defraud an American financial institution by misrepresenting her company’s ties to Iran in an effort to avoid U.S. sanctions against Iran.

In Meng’s statement of facts, she stated that Huawei was in “normal business cooperation” with Skycom, an Iranian-based company. However, Huawei actually controlled Skycom, and Skycom employees were Huawei. The nature of Huawei’s relationship to Skycom was concealed by her, and Skycom’s violations of U.S. sanctions.

Meng Wanzhou, chief financial officer of Huawei Technologies Co. exits her home in Vancouver, British Columbia on Friday Sept.

Huawei CFO Meng Reaches Deal With DOJ To Return To China
Meng Wanzhou, chief financial officer of Huawei Technologies Co., center, exits her home in Vancouver, British Columbia, Canada, on Friday, Sept. 24, 2021. Jimmy Jeong/Bloomberg via Getty Images

First indicted in 2018, Meng was arrested on an extradition warrant in Canada in 2018 and has remained confined to that country as she waged her legal battle in the U.S.

She was detained on the same day that former President Trump and Xi Jinping met at the Group of 20 summit of world leaders in Argentina and had just agreed to a cease-fire in their trade war.

U.S.-China relations have been fraying for years, and that relationship still presents challenges for President Biden, who views China as a competitor, not an adversary. He just spoke with Xi last week for about 90 minutes, but he and Xi have yet to hold a face-to-face meeting. Seven months have passed since the inauguration of Mr. Biden. He has yet to secure a China trade strategy and many tariffs that were imposed by Trump remain.

Meng was seen remotely in Canada, before Anne Donnelly of the Eastern District of New York. There she met with prosecutors and entered into the agreement for deferred prosecution. Meng will be freed on bail as long as the U.S. does not request Canada to extradite Meng for the American charges.

Later, AFP reports that a Canadian judge stopped extradition proceedings against Meng. He also lifted her bail conditions, allowing her to go back to China to complete the remaining deferred prosecution agreement. Meng did not plead guilty to the following charges: bank fraud, wire fraud, and conspiracy to do such acts. However, she did agree to a statement of facts that accurately described her business transactions.

If Meng complies with the conditions of her release, including that neither she nor her lawyers make any public statements contradictory to the statement of fact, the Department of Justice will — in accordance with the deferred prosecution agreement — move to dismiss the charges against her on December 1, 2022. Meng could be sent to prison if she breaks the agreement.

Huawei, the world’s largest supplier of network gear used by phone and internet companies, also faces charges in the U.S. that allege the company conspire to steal trade secrets.

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