Huawei CFO held on fraud charges, court says

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More details have emerged surrounding the arrest of Huawei CFO Meng Wanzhou in Canada last week.

According to The Guardian, Meng lied about Huawei not being linked with SkyCom, a company that sells communications equipment to countries on the US embargo list – Iran, to be precise.

The prosecution said Meng tried to convince some bankers in 2013 that Huawei and SkyCom were two different entities, calling it a 'conspiracy to defraud multiple financial institutions'. It also said “SkyCom was Huawei”, adding that the company used Huawei’s email addresses, and that the two have had linked bank records.

On Saturday, Huawei commented on the happenings, saying it has “every confidence that the Canadian and US legal systems will reach the right conclusion”.

But it’s not ‘just’ the case that’s drawing attention – it’s also the possibility of bail. The prosecution had asked not to grant bail to Meng, as her financial status and the possibility of facing 30 years in an American prison, gives her plenty of reasons to run, if given the opportunity.

Meng’s attorney, David Martin, said wealth should not be a ‘prohibition to bail’, and that Meng will not run away as that would ‘embarrass China itself’.

The Huawei CFO was arrested on Saturday, while travelling to Mexico. The US and China are in the middle of a trade war, in which ZTE and Huawei were taking most of the blows.

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