Huawei CFO Admits Defrauding U.S. Bank, Violating Iran Sanctions

The Chief Financial Officer of Huawei Technologies Co. Ltd., Wanzhou Meng, 49, of the People’s Republic of China (PRC), appeared before a federal district court in Brooklyn, entered into a deferred prosecution agreement (DPA), and was arraigned on charges of conspiracy to commit bank fraud and conspiracy to commit wire fraud, bank fraud and wire fraud, the Federal Bureau of Investigation (FBI) reported.

Photo Insert: Huawei CFO Meng Wanzhou, who has pled guilty to bank fraud, receives a hero's welcome upon touching down in China.

“In entering into a DPA, Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,” said Acting US Attorney Nicole Boeckmann for the Eastern District of New York.

“Her admissions in the statement of facts confirm that, while acting as the Chief Financial Officer for Huawei, Meng made multiple material misrepresentations to a senior executive of a financial institution regarding Huawei’s business operations in Iran in an effort to preserve Huawei’s banking relationship with the financial institution.

The truth about Huawei’s business in Iran, which Meng concealed, would have been important to the financial institution’s decision to continue its banking relationship with Huawei.

Meng’s admissions confirm the crux of the government’s allegations in the prosecution of this financial fraud — that Meng and her fellow Huawei employees engaged in a concerted effort to deceive global financial institutions, the US government, and the public about Huawei’s activities in Iran.”

“Financial institutions are our first line of defense in maintaining the safety and security of the US financial system,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.

“That is why the law requires that companies who avail themselves of the US financial system provide financial institutions with truthful information about their business operations. Meng Wanzhou, CFO of Huawei Technologies, admitted today that she failed to tell the truth about Huawei’s operations in Iran, and as a result, the financial institution continued to do business with Huawei in violation of US law. Our prosecution team continues to prepare for trial against Huawei, and we look forward to proving our case against the company in court.”

“Meng's admissions are evidence of a consistent pattern of deception to violate US law,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division.

“The FBI will continue to aggressively investigate companies doing business in the United States when there are signs they behave with contempt for our laws.”

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