Jury selection begins in US Huawei case over Iran operations
Jury selection has begun in a federal court in Brooklyn, United States, in the criminal case against China’s Huawei Technologies. US prosecutors accuse the company of defrauding HSBC and other banks through its business operations with Iran. As The Jerusalem Post reports, the trial is expected to last about three months.
Charges against Huawei
Huawei is also accused of conspiring to steal trade secrets from five US technology companies. Other charges include alleged violations of US sanctions against Iran, money laundering, racketeering, wire fraud and obstruction of justice.
The company pleaded not guilty to all charges and denied any wrongdoing. According to prosecutors, Huawei used Skycom, a company operating in Iran, to obtain US goods, technology and services subject to an embargo for its Iranian business. The prosecution also alleges that funds were moved out of Iran through the international banking system via Skycom.
The indictment covers alleged violations committed approximately between 1999 and 2020. Reuters reported in 2012 and 2013 on Huawei’s close ties with Skycom. In particular, according to the agency, in 2010 Skycom offered to sell at least €1.3 million worth of embargoed Hewlett-Packard computer equipment to Iran’s largest mobile operator.
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The HSBC episode
The US side stated that one bank, not named in the indictment, processed more than $100 million in US dollar transactions related to Skycom. Sources and documents reviewed by Reuters identified the bank as HSBC.
Prosecutors claim that Huawei Chief Financial Officer Meng Wanzhou falsely described Huawei’s ownership structure and control over Skycom during a presentation to an HSBC representative. She later admitted the falsity of those statements as part of an agreement with prosecutors to drop the charges against her.
The case against Huawei was brought during the first administration of US President Donald Trump. In 2019, Washington placed the company on the US trade blacklist, citing alleged criminal activity that US authorities believed threatened national security. Beijing called the case part of a campaign against China’s technological development, while a Huawei representative said the US government’s overall account was false.
In the event of a conviction, prosecutors will seek the forfeiture of property or proceeds obtained as a result of illegal activity. Todd Haugh, a professor of business law at the Kelley School of Business at Indiana University, said the financial penalty could range from hundreds of millions to billions of dollars.
