US authorities file criminal charges against Huawei for defrauding banks and corporate espionage
The US Department of Justice has filed criminal charges against China's largest smartphone maker Huawei, alleging the firm stole trade secrets from US rival T-Mobile and defrauded banks into violating sanctions against Iran.
In a 13-count indictment, US prosecutors alleged Huawei, two of its affiliated companies and its chief financial officer committed wire fraud, obstruction of justice and conspiracy in connection with several deals in Iran. Huawei's chief financial officer Meng Wanzhou was arrested in Canada last year, and is currently out on bail while she fights extradition to the US.
A separate 10-count indictment also accused the firm of stealing trade secrets from T-Mobile, and offering financial incentives to employees who succeeded in gaining access to rival technology. Huawei was sued by T-Mobile in 2014, and was found guilty for both breach of contract and theft of trade secrets in 2017.
Huawei was accused of lying to a global bank and US authorities about its relationship with Iranian subsidiary Skycom Tech, in order to continue doing business in Iran while violating US sanctions on the country. Meng was accused of personal involvement in the matter, and stands charged of activities of her own accord.
FBI director Christopher Wray said while neither cases insinuated any Chinese state involvement in Huawei's activities, it should be noted that Huawei is required to provide the government with unrestricted access to its data and policies.
Director Wray: Both sets of charges expose Huawei’s brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace.
— FBI (@FBI) January 28, 2019
Director Wray: Huawei also intentionally and systematically sought to steal valuable intellectual property from an American company, so it could circumvent hard-earned, time-consuming research and gain an unfair market advantage.
— FBI (@FBI) January 28, 2019
The charges come as tensions run high between Huawei and a number of countries, where Huawei's telecoms technology is under scrutiny or banned entirely due to the firm's relationship with the Chinese government.
Huawei did not immediately respond to a request for comment after the charges were unsealed.