U.S. continues crackdown on Huawei, charges add to New York case


A third charge alleges that Huawei engaged in wire fraud to steal intellectual property. The three new allegations complement more than a dozen other charges already filed against the company in a case originally unsealed last January. Huawei pleaded not guilty to the initial costs last March.

Earlier charges alleged that Huawei had committed bank fraud and violated economic sanctions against Iran, claiming that the company denied it. Thursday's indictment also reveals new details about Huawei's alleged business deals in Iran and North Korea.

The Justice Ministry accuses Huawei of lying about its relations with an affiliated company called Skycom, which allegedly helped the Iranian government to carry out "internal surveillance, including during the demonstrations in Tehran in 2009."

Federal prosecutors say that when presented with evidence, "the accused have made repeated inaccurate statements to US officials, including FBI agents and representatives of the US House Standing Committee on Intelligence," said a press release from the Ministry of Justice.Huawei's chief financial officer Meng Wanzhou is also cited as an accused in the case. The replacement indictment also charges others who, according to the Department of Justice, have not yet been arrested and whose names have not been released.

Huawei on Thursday accused the US government of seeking to "irrevocably damage Huawei's reputation" for competitive reasons, after the Justice Department announced the additional allegations.

"This new indictment is part of the Department of Justice's attempt to irrevocably harm Huawei's reputation and operations for competitive reasons rather than law enforcement," said Huawei . "The racketeering enterprise that the government has accused today is nothing more than an artificial repackaging of a handful of civil claims that are almost 20 years old and that have never been the basis of 'a significant monetary judgment against Huawei. The government will not prevail over these accusations, which we will prove both unfounded and unjust. "

Following the initial filing by the Department of Justice of criminal charges against the company and Meng last January, Huawei said it "was not aware of any wrongdoing on the part of Ms. Meng and believes that the courts Americans will finally reach the same conclusion. "

Canada is currently in the process of determining whether to extradite Meng, who is also the daughter of Huawei founder Ren Zhengfei, to the United States to be tried on charges in New York. Meng was arrested at Vancouver Airport in late 2018 at the request of the United States government.

In an earlier statement, Huawei said it trusted "the Canadian justice system, which will prove Ms. Meng's innocence."

The case is one of many legal battles Huawei is currently waging in the United States, including another case related to the theft of trade secrets in Washington state. Huawei also pleaded not guilty to the charges.
In two separate cases filed last week, Huawei sued Verizon (VZ) for alleged patent infringement.


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