Huawei CFO Meng Wanzhou will have charges dropped in 2022 for allegedly defrauding HSBC bank

The United States agreed to effectively drop charges against Huawei CFO Meng Wanzhou deferring prosecution against her until late 2022, after which point the charges could be dropped. The deal will allow her to return to China, and could bring to an end a nearly three-year legal saga that has complicated relations between the United States, China and Canada, according to multiple news reports.

In response, China released two Canadian citizens it had been holding on unrelated charges since Meng was arrested. The two businessmen, Michael Kovrig and Michael Spavor, had been held in China since 2018, soon after Canada detained Meng Wanzhou of Huawei.

The US case centered on whether Meng, who is also the daughter of Huawei founder Ren Zhengfei, misled HSBC about Huawei’s relationship with an Iranian subsidiary, Skycom, which the US alleges could have put the bank at risk of sanctions violations. Meng appeared virtually in a court in Brooklyn, New York, and pleaded not guilty to charges of conspiracy to commit bank fraud, bank fraud, conspiracy to commit wire fraud, and wire fraud. As part of the deal, Meng confirmed that the statement of facts in the deferred prosecution agreement are true. Those facts include that she misrepresented Huawei’s relationship with Skycom to HSBC, according to court documents. If she says or implies otherwise, it could violate the terms of the deal and result in her prosecution.
“In entering into the deferred prosecution agreement, Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,” Acting US Attorney Boeckmann said in a statement Friday.

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