Huawei Executive’s Arrest Draws International Attention

Huawei Chief Financial Officer (CFO) Meng Wanzhou has been in custody of Canadian officials in Vancouver since December 1st. Huawei, one of world’s largest manufacturers of smartphones and networking equipment is based in Shenzhen, Guangdong, South China. Their products and services are found in over 170 countries across the world.

The detention of Wanzhou has been a popular topic among the international business community and those monitoring the ongoing political posturing and tension between China and the United States.

Huawei Meng Wanzhou

Accusations Against Wanzhou

Ren Zhengfei is Founder, President, and Chief Executive Officer (CEO) of Huawei and mentored Meng to her current leadership position within the lucrative telecommunications company. However, he is not currently being held responsible for possible fraud committed by Huawei.

The Guardian details the allegations currently lobbied against Meng:

Crown prosecutors allege Meng – the daughter of Huawei’s founder – engaged in “conspiracy to defraud multiple financial institutions” in 2013 when she attempted to convince bankers that Huawei and a former Hong Kong subsidiary SkyCom were wholly separate entities.

“Ms. Meng personally represented to those banks that Skycom and Huawei were separate, when in fact they were not separate. Skycom was Huawei,” said Crown attorney John Gibb-Carlsey.

Meng was arrested in Canada at the request of the United States and is facing possible extradition. The Canadian Extradition Act outlines the legal guidelines for such a process:

General principle

  • 3(1) A person may be extradited from Canada in accordance with this Act and a relevant extradition agreement on the request of an extradition partner for the purpose of prosecuting the person or imposing a sentence on — or enforcing a sentence imposed on — the person if

    • (a) subject to a relevant extradition agreement, the offence in respect of which the extradition is requested is punishable by the extradition partner, by imprisoning or otherwise depriving the person of their liberty for a maximum term of two years or more, or by a more severe punishment; and

    • (b) the conduct of the person, had it occurred in Canada, would have constituted an offence that is punishable in Canada,

      • (i) in the case of a request based on a specific agreement, by imprisonment for a maximum term of five years or more, or by a more severe punishment, and

      • (ii) in any other case, by imprisonment for a maximum term of two years or more, or by a more severe punishment, subject to a relevant extraditionagreement.

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Mark Borkowski 3 months ago Contributor's comment

Walter Yeates is accurate in his reporting of the detention of Meng Wanzhou, CFO of Huawei. In the late afternoon of December 11th, Ms. Wanzhou was granted bail under a $10 million dollar bond. She is under electronic supervision and required to remain in one of her two luxury homes located in Vancouver. President Trump indicated that Ms. Wanzhou might be extradited into the U.S. and used in the ongoing "trade" negotiations with China. A Canadian former senior diplomat was detained and apparently jailed earlier in the day as a "retalition" of the Canadian actions. As a Canadian, all of this news has been the breaking all day. Some of the Chinese blogs declared that the the detention of Wanzhou was an "act of war" against China by Canada and the U.S. The markets have not yet absorbed the severity and potential fallout of these actions. More to come.

Gary Anderson 3 months ago Contributor's comment

Yes, Mark, great reporting. Can you imagine how long a plan would last brokered with Meng as a hostage? Boycotts have already begun over Canadian goose clothing. Canada needs to let her out of the country, to show Trudeau doesn't hate prosperity like Trump hates prosperity.

Mark Borkowski 3 months ago Contributor's comment

Hard to disagree with you. Using Meng as wampum in trade negotiations with China is not a very smart move. One of President Trump's tweet of December 11th states excactly that. This will backfire in a major way. The boycott of Canada Goose wear is likely the first of many Chinese actions against Canada and the U.S. Scary times. Now what?

Jon Drexel 3 months ago Member's comment

My way or the highway! Really China.....Maybe we should take a look under your hood?

Leslie Miriam 3 months ago Member's comment

Shouldn't we wait to reserve judgement until the evidence is presented? She could be guilty, she could not be.

Gary Anderson 3 months ago Contributor's comment

Please tell me Jon, that you will at least remain sceptical of US motives and UScomprehension of international law. www.talkmarkets.com/.../mengs-arrest-vs-the-rule-of-law

Donald Kaplan 3 months ago Member's comment

Regardless of Iran, it sounds like she's guilty of fraud: "conspiracy to defraud multiple financial institutions in 2013 when she attempted to convince bankers that Huawei and a former Hong Kong subsidiary SkyCom were wholly separate entities." when they were not.

Mark Borkowski 3 months ago Contributor's comment

Mr. Kaplan. The allegations you presented have been put forward to the courts in Canada. Meng has a court date in early February in Canada. American Justice representatives will put forward their extradition motions forward on or around that time. Almost always, Canada stands behind U.S. - God Bless America. - We hope you know what you are doing...

Gary Anderson 3 months ago Contributor's comment

But she would have not had to do so if the US had not broken from the world community to go rogue on Iran. So, guilty of what?

Gary Anderson 3 months ago Contributor's comment

It only is fraud if the underlying crime is real. Since the US is not a part of the international legal treaty regarding Iran, and is a rogue nation, there is no crime in selling to Iran.