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Huawei CFO Meng Wanzhou to be released after agreement with U.S. in fraud case

Huawei chief financial officer Meng Wanzhou arrives at British Columbia Supreme Court with her security detail for the afternoon session of her extradition hearing, August 4, 2021 in Vancouver, Canada.

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The chief financial officer of Chinese tech firm Huawei will be released and allowed to return to China after reaching an agreement with the U.S. government on fraud charges, prosecutors said Friday in a Brooklyn federal court.

An American district judge approved the agreement to defer prosecution, which is effective until December 1, 2022. The deal stipulated that Meng Wanzhou (executive) affirmed the truthfulness of the statement of facts, and agreed to not commit any other crime or face prosecution.

Meng, the daughter of Huawei’s founder, was arrested in Canada in December 2018. The U.S. sought to extradite her on bank and wire fraud charges, claiming she was misled a financial institution to violate American sanctions on Iran. On Friday, the U.S. announced that it would withdraw its request for extradition.

Meng has pleaded not guilty. According to Nicole Boeckmann (Acting U.S. Assistant for the Eastern District of New York), Meng agreed to take “responsibility” for her role in the scheme.

Boeckmann claims that Meng, while she was Huawei’s CFO, made “multiple material mistakes” in discussing Iran business with a senior financial executive. This was claimed by the government to have been done to keep Huawei’s business relationship.

Boeckmann claimed that Meng’s core accusations were confirmed by the admission. Media reports have linked Hong Kong-based HSBC to the case, though the bank has previously said the DOJ has confirmed it is not under investigation in the case.

Huawei declined to comment.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.