Huawei CFO, USA attain settlement to resolve financial institution fraud allegations – company insurance

(Reuters) – Meng Wanzhou, Huawei's chief financial officer, has reached an agreement with U.S. attorneys to close the bank fraud case against them, U.S. Assistant Attorney David Kessler told a New York judge on Friday, a move which should enable her to finally leave Canada and relieve a tension between China and the USA.

A hearing is ongoing in federal court in Brooklyn where the US government said it would consider settling the charges against Ms. Meng, according to a court filing on Friday. Ms. Meng attended the hearing virtually from Canada and pleaded not guilty to the charges.

Ms. Meng was arrested at Vancouver International Airport in December 2018 on a U.S. arrest warrant and charged with bank and wire transfer fraud allegedly misleading HSBC about the telecommunications equipment giant's business relationships in Iran, a story first reported by Reuters in 2012.

The deal only affects Ms. Meng and US charges against the company remain, according to people familiar with the matter.

Mr Kessler said the deal ends in December 2022 and that the charges will be dropped as long as they don't break the law.

In addition to settling a US-China dispute, the deal could pave the way for the release of two Canadians, businessman Michael Spavor and former diplomat Michael Kovrig, who have been held in China since their arrest shortly after Ms. Meng was arrested in 2018 taken into custody. In August, a Chinese court sentenced Mr. Spavor to 11 years in prison for espionage.

A Huawei spokeswoman declined to comment. Ms. Meng's attorney was not immediately available for comment.

Ms. Meng, who also used the English first names “Cathy” and “Sabrina”, said she was innocent and fought against extradition from Canada to the United States. She is locked up in Vancouver and is monitored around the clock by a private security service that she pays as part of her bail agreement.

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