Huawei-Skycom sales to Iran

In hearings Friday, prosecutors indicated systematic violations of U.S. sanctions by Huawei in its transactions with Iran, which reportedly were on a scale of more than $100 million. In addition, the Huawei executive was charged with bank fraud.

The transactions with Iran took place through a Hong Kong-based company, Skycom, prosecutors said. Skycom allegedly supplied U.S.-made computer equipment to Iranian telecom companies from 2009 to 2014.

When a 2013 Reuters report exposing the dealings prompted U.S. banks to question Huawei on its relationship with Skycom, Meng, using PowerPoint slides, made false representations that Huawei sold its stake in the vendor, Canadian prosecutor John Gibb-Carsley was quoted as saying at the bail hearing.

In January 2013, Reuters reported that Hong Kong-based Skycom Tech Co Ltd, which attempted to sell embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator, had much closer ties to Huawei than previously known.

Meng, who also has used the English names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to Skycom records. Several other past and present Skycom directors also appear to have connections to Huawei.

Larry Kudlow, the head of U.S. President Donald Trump’s National Economic Council, said on Friday that Huawei had violated the sanctions despite having been warned.

“You can’t break the law,” Kudlow told CNBC. “You break the American law, you break the Canadian law, you’ve got to pay the consequences of that.”

A Canadian federal Crown prosecutor says a senior Huawei Technologies executive who was arrested in Vancouver and is being sought for extradition to the U.S. committed multiple acts of fraud against financial institutions and should be denied bail.

John Gibb-Carsley, a lawyer with the federal Justice Department, urged a judge on Friday to deny bail to Meng Wanzhou, the chief financial officer of the Chinese tech giant. The case is to continue on Monday.

Gibb-Carsley told B.C. Supreme Court Justice William Ehrcke that Meng has no meaningful connections to Canada and has vast resources and is a serious flight risk.

“At the starting point, there is an incentive to flee. Ms. Meng is charged with conspiracy to defraud multiple international financial institutions. It is a serious offence, with each offence carrying a maximum of 30 years in prison.”

Sources:, Reuters, Jan 2013.

, Vancouver Sun,

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