{"id":851,"date":"2019-01-29T23:09:06","date_gmt":"2019-01-29T23:09:06","guid":{"rendered":"http:\/\/ielrblog.com\/?p=851"},"modified":"2019-01-29T23:09:06","modified_gmt":"2019-01-29T23:09:06","slug":"us-unseals-2-indictments-against-huawei-corporate-entities-one-for-money-laundering-obstruction-of-justice-and-sanctions-violations-and-another-for-theft-of-trade-secrets-wire-fraud-et-al","status":"publish","type":"post","link":"https:\/\/ielrblog.com\/index.php\/2019\/01\/29\/us-unseals-2-indictments-against-huawei-corporate-entities-one-for-money-laundering-obstruction-of-justice-and-sanctions-violations-and-another-for-theft-of-trade-secrets-wire-fraud-et-al\/","title":{"rendered":"US Unseals 2 Indictments against Huawei Corporate Entities \u2013 One for Money Laundering, Obstruction of Justice and Sanctions Violations and Another for Theft of Trade Secrets, Wire Fraud et al"},"content":{"rendered":"

On January 28, 2019, the U.S. Department of Justice unsealed\u00a0 two indictments against Huawei corporate entities and the Huawei Chief Financial Officer Wanzhou Meng.<\/p>\n

In the U.S. Court Eastern District of New York, a 13-count indictment<\/a> was unsealed,<\/a> charging four defendants, including Huawei Technologies Co. Ltd. (Huawei), and two Huawei affiliates \u2013 Huawei Device USA Inc. (Huawei USA) and Skycom Tech Co. Ltd. (Skycom) as well as Meng.<\/p>\n

The indictment alleges that starting in 2007,\u00a0 Huawei employees lied about Huawei\u2019s relationship to a company in Iran called Skycom, and falsely asserting it was not an affiliate of Huawei.\u00a0 The company allegedly claimed that Huawei had only limited operations in Iran and that Huawei did not violate U.S. or other laws or regulations concerning Iran.\u00a0 Even after the media reported in late 2012 and 2013 disclosed that Huawei operated Skycom as an unofficial affiliate in Iran and that Meng had served on the board of directors of Skycom, Huawei employees, and especially Meng, falsely claimed that Huawei had sold its interest in Skycom to an unrelated third party in 2007 and that Skycom was only Huawei\u2019s local business partner in Iran.\u00a0 In reality, the indictment alleges Skycom was Huawei\u2019s longstanding Iranian affiliate, and Huawei initiated the 2007 sale to appear as an arm\u2019s length transaction between two unrelated parties, when Huawei actually controlled the company that bought Skycom.<\/p>\n

The indictment charges that, in reliance of Huawei\u2019s misrepresentation, U.S. banks continued their banking relationships with Huawei in violation of the Iran sanctions.\u00a0 One bank cleared more than $100 million worth of Skycom-related transactions through the U.S. between 2010 and 2014.<\/p>\n

The indictment charges that Huawei and its principals repeatedly lied to U.S. government authorities on Huawei\u2019s business in Iran.<\/p>\n

In 2017, when Huawei became aware of the government\u2019s investigation, Huawei and Huawei USA allegedly tried to obstruct the investigation by moving witnesses with knowledge about Huawei\u2019s Iran-based business to the PRC, and by concealing and destroying evidence of Huawei\u2019s Iran-based business that was located in the U.S.<\/p>\n

In December 2018, Canadian authorities detained Meng in Vancouver pursuant to a provisional arrest warrant issued under Canadian law.\u00a0 The U.S. government is seeking Meng\u2019s extradition to the U.S.<\/p>\n

Indictment against Huawei Corporate Entities for Stealing Trade Secret Technology<\/em><\/p>\n

On January 28, 2019, a 10-count indictment<\/a> was unsealed\u00a0<\/a>in the U.S. District Court for the Western District of Washington, charging Huawei Device Co., Ltd. and Huawei Device Co. USA with theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice.\u00a0 On January 16, a grand jury returned the indictment, detailing Huawei\u2019s efforts to steal trade secrets from Bellevue, Washington based T-Mobile USA and then obstruct justice when T-Mobile threatened to sue Huawei in U.S. District Court in Seattle.\u00a0 The alleged conduct occurred from 2012 to 2014, and includes an internal Huawei announcement that the company was offering bonuses to employees who succeeded in stealing confidential information from other companies.<\/p>\n

The FBI obtained emails revealing that in July 2013, Huawei offered bonuses to employees based on the value of information they stole from other companies around the world, and provided to Huawei through an encrypted email address.<\/p>\n

The unsealing of the indictments occurs at a critical time, since the U.S. had until January 30 to send to Canada its formal extradition request for Meng.\u00a0 The unsealing of the indictments occurs during intensive trade negotiations between the U.S. and China over tariffs.\u00a0 Among the controversial issues are U.S. complaints about China\u2019s theft of trade secrets and violations of U.S. sanctions.<\/p>\n","protected":false},"excerpt":{"rendered":"

On January 28, 2019, the U.S. Department of Justice unsealed\u00a0 two indictments against Huawei corporate entities and the Huawei Chief Financial Officer Wanzhou Meng. In the U.S. Court Eastern District of New York, a 13-count indictment was unsealed, charging four defendants, including Huawei Technologies Co. Ltd. (Huawei), and two Huawei affiliates \u2013 Huawei Device USA […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6,36,4,63],"tags":[72],"class_list":{"0":"post-851","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economic-sanctions","7":"category-extradition","8":"category-money-laundering-and-bank-secrecy","9":"category-transparency-and-governance","10":"tag-tradesecretsviolations","11":"entry"},"yoast_head":"\nUS Unseals 2 Indictments against Huawei Corporate Entities \u2013 One for Money Laundering, Obstruction of Justice and Sanctions Violations and Another for Theft of Trade Secrets, Wire Fraud et al | IELR Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ielrblog.com\/index.php\/2019\/01\/29\/us-unseals-2-indictments-against-huawei-corporate-entities-one-for-money-laundering-obstruction-of-justice-and-sanctions-violations-and-another-for-theft-of-trade-secrets-wire-fraud-et-al\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US Unseals 2 Indictments against Huawei Corporate Entities \u2013 One for Money Laundering, Obstruction of Justice and Sanctions Violations and Another for Theft of Trade Secrets, Wire Fraud et al | IELR Blog\" \/>\n<meta property=\"og:description\" content=\"On January 28, 2019, the U.S. Department of Justice unsealed\u00a0 two indictments against Huawei corporate entities and the Huawei Chief Financial Officer Wanzhou Meng. 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