A US judge rejected Huawei’s argument that prosecutors could not use the admission of CFO Meng Wanzhou against the company, ruling that the corporation does not have a right to remain silent despite her statement. The judge also found it unnecessary for Huawei to cross-examine her in court.
The ruling came Tuesday in federal court in Brooklyn. Meng, Huawei’s CFO, made the admission as part of a 2021 agreement to drop criminal charges she faced. She had been accused of bank fraud in the US related to violations of Iran sanctions.
In a four-page statement of facts, Meng admitted to lying to a financial institution about Huawei’s compliance with sanctions and export control laws. Judge Ann Donnelly wrote: “Ms. Meng was and remains Huawei’s CFO. Huawei cannot object that the admission of a senior officer’s statements about her conduct on the job – which Huawei accepted – violates Huawei’s rights.”
A Huawei spokesperson did not immediately respond to a request for comment. Meng, daughter of Huawei founder Ren Zhengfei, sparked global turmoil in 2018 when she was arrested on a US warrant after landing in Vancouver, straining US-China and China-Canada relations.
The arrest followed a sealed indictment accusing her and the company of bank fraud for misleading HSBC and other banks about Huawei’s business in Iran. Meng spent nearly three years under house arrest in Canada in a six-bedroom million-dollar home while fighting extradition to the US.
In an unusual pandemic-era resolution, she was allowed to appear remotely from Vancouver in September 2021 to sign a deferred prosecution agreement before boarding a flight to China, where she was greeted as a hero. The deal stipulated charges would be dropped later. Shortly after Meng’s release, China freed two Canadian citizens it had detained, and two American brothers who had been prevented from leaving the country were allowed to fly home.
The case against Huawei continues. Beyond the initial bank-related charges, a superseding indictment accuses the company of stealing trade secrets and other offenses. Since 2019, the US has restricted Huawei’s access to American technology, accusing the company of activities against US national security, which Huawei denies.
The company has not only recovered from the US restrictions but expanded into new businesses such as smart auto components and is a leader in China’s AI development. The trial is scheduled for jury selection on September 8.
