USA charges Huawei with fraud for violating Iran sanctions

USA charges Huawei with fraud for violating Iran sanctions

USA charges Huawei with fraud for violating Iran sanctions

Huawei, the Chinese telecommunications giant, was on Monday criminally charged by the U.S. with stealing trade secrets, defrauding banks and obstructing justice.

"The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace", FBI Director Christopher Wray told reporters. Watch live in the player above.

Meng, Huawei's CFO, is charged with bank fraud, wire fraud and conspiracies to commit bank and wire fraud.

Huawei allegedly wanted to build its own Tappy robot for testing phones before its handsets were sent to T-Mobile, so its engineers secretly took the robot's photos and measurements. It also accuses the company's CFO, Meng Wanzhou, of lying about Huawei's relationship with the Iranian company Skycom, which it says violated American sanctions prohibiting us banks from processing transactions connected to Iran.

Prosecutors charge Huawei used a Hong Kong shell company to sell equipment in Iran in violation of USA sanctions.

"These are very serious actions by a company that appears to be using corporate espionage and sanctions violations to not only enhance, potentially, their bottom line, but also to compete in the world economy", Whitaker said.

This story is developing and will be updated.

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"Criminals and bad actors can be certain that they are not going to get away", Whitaker said.

Skycom, which is based in Hong Kong did business in Iran on behalf of Huawei, he alleged. The 10-count indictment from the Seattle grand jury includes the allegation that Huawei employees were offered cash bonuses as a reward for stealing rivals' technology.

U.S. Commerce Secretary Wilbur Ross said the Huawei charges are "wholly separate" from the trade negotiations.

Tensions have been on the rise between Huawei and the US government for some time, with government officials citing concerns that Huawei equipment could be used by the Chinese government for spying. Meng is out on bail in Vancouver and is due to back in court February 6 as she awaits extradition proceedings to begin.

The Wall Street Journal reported last week that Huawei was under federal investigation and might soon have charges filed against it. We look forward to presenting the evidence of Huawei's crimes in a court of law, and proving our case beyond a reasonable doubt.

US-China trade war: The unsealed indictment days before US-China trade talks were scheduled to resume in Washington. (Huawei USA) and Skycom Tech Co.

He referred to security threats posed by Huawei, which were reiterated by Wray during the January 28 press conference.

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