The Wall Street Journal: U.S. alleges Huawei CFO covered up ties to telecom that did business with Iran

VANCOUVER, British Columbia — Canadian authorities arrested Huawei Technologies Co. finance chief Meng Wanzhou because of U.S. allegations that she fraudulently covered up Huawei’s control of a company called Skycom that was doing business in Iran, a Canadian prosecutor said Friday.

At a bail hearing for Meng in a Canadian court in Vancouver, John Gibb-Carsley, the Canadian prosecutor, said Meng misled financial institutions about the connection between Huawei and Skycom at a time when there were sanctions against Iran, saying there was no relationship. In fact, he said, Huawei and Skycom were the same company. “This is the crux, I say, of the alleged fraud,” Gibb-Carsley said.

Meng served on the board of Skycom, a Hong Kong-based firm with business in Iran, from February 2008 to April 2009, Hong Kong corporate records show.

Meng, the daughter of Huawei founder Ren Zhengfei, was arrested by Canadian authorities Saturday in Vancouver at the request of the U.S., as she was en route from Hong Kong to Mexico. She is facing extradition to the U.S. for an alleged violation of the country’s sanctions against Iran.

An expanded version of this report appears at WSJ.com.

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