In court, Chi­nese ex­ec­u­tive ac­cused of vi­o­lat­ing sanc­tions

The Sacramento Bee - - State - BY JIM MOR­RIS, ROB GILLIES AND PAUL WISEMAN

A top Chi­nese telecom­mu­ni­ca­tions ex­ec­u­tive fac­ing pos­si­ble ex­tra­di­tion to the United States ap­peared in court Fri­day as she sought bail in a case that has rat­tled mar­kets and raised doubts about the U.S. be­ing able to reach a truce in its trade war with China.

A pros­e­cu­tor for the Cana­dian gov­ern­ment urged the court not to grant bail, say­ing the charges against Meng Wanzhou, the chief fi­nan­cial of­fi­cer for Chi­nese tele­com gi­ant Huawei, in­volve U.S. al­le­ga­tions that Huawei used a shell com­pany to ac­cess the Iran mar­ket in deal­ings that con­tra­vene U.S. sanc­tions.

Pros­e­cu­tor John Gib­bCars­ley said Meng, who has vast fi­nan­cial re­sources as the daugh­ter of Huawei’s founder, has in­cen­tive to flee Canada be­cause she faces fraud charges in the U.S. that could bring up to 30 years in prison.

The pros­e­cu­tor said Meng as­sured U.S. banks that Huawei and the shell com­pany al­leged to have done busi­ness with Iran, called Sky­com, were sep­a­rate com­pa­nies, but in fact Sky­com and Huawei were one and the same.

“Ms. Meng per­son­ally rep­re­sented to those banks that Sky­com and Huawei were sep­a­rate, when in fact they were not sep­a­rate,” Gibb-Cars­ley said. “Sky­com was Huawei.” Meng has con­tended Huawei sold Sky­com in 2009.

Gibb-Cars­ley said the war­rant for Meng’s ar­rest was is­sued in New York on Aug. 22. He said Meng was aware of the U.S. in­ves­ti­ga­tion and had avoided the U.S. since March 2017, even though her teenage son goes to school in Bos­ton.

Meng was ar­rested in Van­cou­ver on Satur­day en route to Mex­ico from Hong Kong.

Meng’s lawyer, David Martin, dis­puted the pros­e­cu­tor’s call to deny bail, say­ing: “The fact a per­son has worked hard and has ex­tra­or­di­nary re­sources can­not be a fac­tor that would ex­clude them from bail.”

He said Meng’s own per­sonal in­tegrity would not al­low her to go against a court order and that she would not em­bar­rass her fa­ther, com­pany founder Ren Zhengfei , by breach­ing such an order. He said Meng had agreed to wear an an­kle mon­i­tor.

Meng Wanzhou

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