DOJ charges Huawei with stealing trade secrets, financial fraud, violating sanctions, more...

Posted:
in General Discussion
The U.S. Department of Justice on Monday formally filed criminal charges against Chinese smartphone and communications equipment manufacturer Huawei, alongside company CFO Wanzhou Meng and "unofficial affiliate" Skycom, for a range of alleged misdeeds including theft of trade secrets and wire fraud.

Huawei
Huawei CFO Wanzhou Meng


An unsealed 13-count indictment in Brooklyn, N.Y., charges Huawei and Skycom with bank fraud, wire fraud, violations of the International Emergency Economic Powers Act (IEEPA) and conspiracy to commit money laundering.

The same indictment charges Huawei and Huawei USA with conspiracy to obstruct justice related to the grand jury investigation in the Eastern District of New York, and pins bank fraud and wire fraud on Meng.

A separate case lodged in Seattle, Wash., charges Huawei with stealing trade secrets from T-Mobile

Prosecutors in the N.Y. case allege Huawei conducted business operations in Iran through Hong Kong firm Skycom, violating U.S. sanctions on the country. Huawei repeatedly denied its relationship with Skycom, which it claimed was merely a business partner in Iran. Meng also lied about the association to banking partners, including those in the U.S. prohibited from processing transactions related to Iranian business.

According to the indictment, when Huawei caught wind of the U.S. government's investigation into its allegedly fraudulent practices in 2017, the company attempted to move witnesses with knowledge of Skycom to China. The scheme, along with attempts to conceal and destroy evidence in the U.S., amount to obstruction.

"As charged in the indictment, Huawei and its Chief Financial Officer broke U.S. law and have engaged in a fraudulent financial scheme that is detrimental to the security of the United States," said Secretary Kirstjen Nielsen of the U.S. Department of Homeland Security. "They willfully conducted millions of dollars in transactions that were in direct violation of the Iranian Transactions and Sanctions Regulations, and such behavior will not be tolerated."

The 10-count Washington state indictment charges Huawei with stealing trade secrets relating to a robotic testing device from T-Mobile. Specifically, in 2013, T-Mobile granted Huawei engineers access to "Tappy," a nickname given to a robot designed to simulate smartphone use. Huawei allegedly captured photos and measurements of the device and used that data to enhance its own robot, according to the indictment.

Prosecutors also allege Huawei set up a bonus structure for employees who managed to obtain sensitive technology from rival companies.

The unsealing of today's filings follow Meng's high-profile arrest in December. Huawei's CFO, and daughter of company founder Ren Zhengfei, is currently fighting extradition to the U.S.
watto_cobra
«1

Comments

  • Reply 1 of 23
    tzeshantzeshan Posts: 1,876member
    Why DOC does not charge Google for stealing trade secrets from Apple? 
    jbdragonmagman1979AppleExposedwatto_cobra
  • Reply 2 of 23
    normmnormm Posts: 545member
    The US shouldn't be imposing sanctions on Iran--it's our most counterproductive foreign policy move in decades. And we should be fixing problems we have with China, not starting a war (trade or otherwise).
    p-dog
  • Reply 3 of 23
    jbdragonjbdragon Posts: 1,994member
    normm said:
    The US shouldn't be imposing sanctions on Iran--it's our most counterproductive foreign policy move in decades. And we should be fixing problems we have with China, not starting a war (trade or otherwise).
    China has been screwing over the U.S. for years in unfair trade are tariffs. The U.S. Government did nothing. It's time for that to end.The Tariffs go away as soon as China's Tariffs go away and they allow a more equal trade between the two countries. It's about time something like this was done. All the money flowing into China in one direction is just helping them built up their military complex. Then start doing things like creating bogus Island, while killing off marine habitat all in the name of control. Zooming their jets right next to American Jets in International waters is a really unsafe manner. GO cry me a river.
    georgie01anantksundarammwhitemagman1979racerhomie3ronnAppleExposedboltsfan17tbornotSpamSandwich
  • Reply 4 of 23
    jbdragon said:
    normm said:
    The US shouldn't be imposing sanctions on Iran--it's our most counterproductive foreign policy move in decades. And we should be fixing problems we have with China, not starting a war (trade or otherwise).
    China has been screwing over the U.S. for years in unfair trade are tariffs. The U.S. Government did nothing. It's time for that to end.The Tariffs go away as soon as China's Tariffs go away and they allow a more equal trade between the two countries. It's about time something like this was done. All the money flowing into China in one direction is just helping them built up their military complex. Then start doing things like creating bogus Island, while killing off marine habitat all in the name of control. Zooming their jets right next to American Jets in International waters is a really unsafe manner. GO cry me a river.
    Right.  China is the aggressor.  Mmm hmmm. 
    muthuk_vanalingam
  • Reply 5 of 23
    65026502 Posts: 148member
    normm said:
     And we should be fixing problems we have with China, not starting a war (trade or otherwise).
    What do you think we're doing? China has been raping and pillaging us for decades, finally time to put a stop to that.
    georgie01anantksundarammagman1979ronntbornotwatto_cobra
  • Reply 6 of 23
    tzeshan said:
    Why DOC does not charge Google for stealing trade secrets from Apple? 
    If Apple filed a complaint with the DoJ, and could show some prima facie evidence, there is ZERO doubt on whether they would follow up. The US DoJ — unlike equivalents in other countries — is quite harsh on US companies, all the time.

    Do you — or anyone else — know if Apple has?
    edited January 28 racerhomie3Foliowatto_cobra
  • Reply 7 of 23
    tzeshantzeshan Posts: 1,876member
    tzeshan said:
    Why DOC does not charge Google for stealing trade secrets from Apple? 
    If Apple filed a complaint with the DoJ, and could show some prima facie evidence, there is ZERO doubt on whether they would follow up. The US DoJ — unlike equivalents in other countries — is quite harsh on US companies, all the time.

    Do you — or anyone else — know if Apple has?
    Jobs said it. 
    watto_cobra
  • Reply 8 of 23
    As a European this is exceedingly entertaining to watch.
    Gabywatto_cobra
  • Reply 9 of 23
    avon b7avon b7 Posts: 3,313member
    The hot potato gets even hotter.

    If part of Apple's woes in China is anti US sentiment, then this turn of events will probably make things worse.

    No doubt someone will bring it up at the earnings call later today.
  • Reply 10 of 23
    avon b7 said:
    The hot potato gets even hotter.

    If part of Apple's woes in China is anti US sentiment, then this turn of events will probably make things worse.

    No doubt someone will bring it up at the earnings call later today.
    Fortunately, the LAW doesn't give a crap about some company's earnings, and it shouldn't.
    racerhomie3beowulfschmidtmuthuk_vanalingamanantksundaramtbornotwatto_cobra
  • Reply 11 of 23
    It's amazing how people allow their feelings to get in the way of facts. From what I have heard, TMobile provided the US Government unequivocal proof (surveillance video showing the theft) which is what triggered these events. Crazy how people have a higher regard for a Communist country over the US, but that's just people's bias. Thank goodness facts don't care about anyone's feelings.
    racerhomie3tmaybeowulfschmidtanantksundaramtbornotwatto_cobra
  • Reply 12 of 23
    avon b7avon b7 Posts: 3,313member
    acejax805 said:
    It's amazing how people allow their feelings to get in the way of facts. From what I have heard, TMobile provided the US Government unequivocal proof (surveillance video showing the theft) which is what triggered these events. Crazy how people have a higher regard for a Communist country over the US, but that's just people's bias. Thank goodness facts don't care about anyone's feelings.
    The 'facts' will be presented in court.

    The collateral damage though potentially involves Apple and has nothing to do with the case - but people are people. Yes, they have feelings and Apple could be affected in China as a result.

    Where did you get the idea that anyone has a higher regard for one or other country?
  • Reply 13 of 23
    bellsbells Posts: 119member
    acejax805 said:
    It's amazing how people allow their feelings to get in the way of facts. From what I have heard, TMobile provided the US Government unequivocal proof (surveillance video showing the theft) which is what triggered these events. Crazy how people have a higher regard for a Communist country over the US, but that's just people's bias. Thank goodness facts don't care about anyone's feelings.
     I hate Trump. Some people , however, think that just because he is a horrible person that he is entirely wrong about everything. He is right about China’s trade abuses and its ill regard for Foreign companies IP. Perhaps his execution of the tariffs can be questioned, China’s Ill regard for IP hurts US companies and our economy. China can steal Apple’s ideas and implement them even before Apple can because it controls the factories. The irony is Apples Chinese competitors get credit for being innovative for being first to market when they merely bipassed the reasearch and development stage by taking somebody else’s work. I remember when Apple had a commercial with a tank saying its computers were so powerful for national security concerns they couldn’t be exported to places like China.
    watto_cobra
  • Reply 14 of 23
    gatorguygatorguy Posts: 20,030member
    tzeshan said:
    tzeshan said:
    Why DOC does not charge Google for stealing trade secrets from Apple? 
    If Apple filed a complaint with the DoJ, and could show some prima facie evidence, there is ZERO doubt on whether they would follow up. The US DoJ — unlike equivalents in other countries — is quite harsh on US companies, all the time.

    Do you — or anyone else — know if Apple has?
    Jobs said it. 
    Steve Jobs said a lot of stuff. He and hyperbole were best of friends. 
    edited January 29 muthuk_vanalingam
  • Reply 15 of 23
    tmaytmay Posts: 3,462member
    gatorguy said:
    tzeshan said:
    tzeshan said:
    Why DOC does not charge Google for stealing trade secrets from Apple? 
    If Apple filed a complaint with the DoJ, and could show some prima facie evidence, there is ZERO doubt on whether they would follow up. The US DoJ — unlike equivalents in other countries — is quite harsh on US companies, all the time.

    Do you — or anyone else — know if Apple has?
    Jobs said it. 
    Steve Jobs said a lot of stuff. He and hyperbole were best of friends. 

    OT, but Steve pales against the RDF of this guy, Billy McFarland, and his Fyre Festival.

    Dueling documentaries

    https://qz.com/quartzy/1533746/hulus-fyre-vs-netflixs-fyre-fraud-a-scorecard/

    FTC finds that influencers may be held accountable for not disclosing payments from promoters.
    watto_cobra
  • Reply 16 of 23

    Huawei repeatedly denied its relationship with Skycom, which it claimed was merely a business partner in Iran.
    So, "business partner" isn't a relationship?
    watto_cobra
  • Reply 17 of 23
    FolioFolio Posts: 486member
    As a European this is exceedingly entertaining to watch.
    Believe Deutsche Telecom owns T-Mobile, so...
    watto_cobra
  • Reply 18 of 23
    tzeshan said:
    tzeshan said:
    Why DOC does not charge Google for stealing trade secrets from Apple? 
    If Apple filed a complaint with the DoJ, and could show some prima facie evidence, there is ZERO doubt on whether they would follow up. The US DoJ — unlike equivalents in other countries — is quite harsh on US companies, all the time.

    Do you — or anyone else — know if Apple has?
    Jobs said it. 
    1) Jobs -- or anyone else -- 'saying it' is not the same thing as 'filing a complaint.' Please re-read what I wrote, if you didn't get it at first pass.

    2) There are some who believe that Apple's going after Samsung (on the non-hardware issues) was a proxy fight of sorts to put Google's Android clients on notice.
    watto_cobra
  • Reply 19 of 23

    As a European this is exceedingly entertaining to watch.
    In what way?

    You think it doesn't impact you? 
    watto_cobra
  • Reply 20 of 23
    tbornottbornot Posts: 106member
    I can see why China is upset, their “legal” system means the verdict has already been passed down long before the trial and the outcome always benefits the corrupt ruling party.   The concept that twelve independent citizens would determine the outcome based on fact is so alien to them...
    watto_cobra
Sign In or Register to comment.