Tag Archives: CFO

Huawei CFO seeks bail due to health concerns.

December 10, 2018 By in Huawei, Uncategorized Tags: , , , , Leave a comment

At a court hearing in Canada  yesterday, jailed Huawei CFO, Wanzhou Meng, argued she should be released due to fears for her health while incarcerated. Since her arrest, the 46 year old has been treated for hypertension.

As bail is usually not granted if someone is a flight risk, Wangzhou claimed through an affidavit that she is not a flight risk as she has “longstanding ties” to Canada and even owns properties in Vancouver.

However, it is unlikely Canada will release her on bail as an extradition hearing will determine whether she be extradited to the United States to face trial for allegedly misleading banks about Huawei’s control of a company in Iran. In addition to Wanzhou facing charges; the US could also put the banks at risk for violating US sanctions and incurring penalties.

Summary of information we have about the Huawei CFO Arrest.

December 10, 2018 By in Hong Kong, Huawei, Skycom, Uncategorized Tags: , , , , , , , Leave a comment
black huawei android smartphone

Photo by Alex Fu on Pexels.com

Below is a summary in bullet point of news we know about the arrest of Huawei’s CFO as reported by multiple sources:

  1. Who is Meng Wangzhou?
    1. 46 year-old global CFO of Huawei
    2. Daughter of Huawei founder.
    3. She faces extradition to the US.
    4. She also goes by Cathy or Sabrina
  2. When was the arrest?
    1. December 1, 2018
    2. The arrest warrant was issued on August 22nd.
  3. Where did they arrest the CFO?
    1. The arrest took place in Vancouver’s airport as she traveled from Hong Kong to Mexico.
  4. Why did they arrest the CFO?
    1. The arrest stems from 2013 statements made by Meng Wanzhou. In 2013, she told financial institutions Huawei had no connection to a Hong-Kong based company called Skycom.
  5. Why is Skycom Tech Co. Ltd. under investigation by the US?
    1. Skycom is suspected of selling Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator.
    2. There is an embargo in place and selling HP equipment to Iran is in violation of US sanctions.
    3. Meng’s lawyer claims Huawei already divested itself from Skycom and left the Skycom board.
    4. US authorities also believe Huawei operated Skycom as an “unofficial subsidiary” to conduct business in Iran.
    5. Meng previously served on the board of Skycom from February 2008- April 2009 according to Skycom filings with Hong Kong’s Companies Registry.
    6. Several past Skycom directors may also have connections to Huawei.
  6. Tell me more about the court case?
    1. Eastern District of New York.
    2. US authorities will like allege Meng played a role in fraud by telling banks there was no link between Huawei and Skycom.
  7.  Why arrest the CFO in Canada?
    1. The US does not have an extradition treaty with China
    2. Canadian authorities consider her a flight risk because of her wealth.
  8.  What is China’s response?
    1. The Chinese government has demanded Meng’s immediate release.
    2. China has asked Ottawa and Washington to clarify their reasons for the detention.
    3. The arrest has sparked anger on Chinese social media with users calling for boycott of US goods.
  9.  Who is Huawei?
    1. Huawei was founded in 1987 by Zhengfei Ren, a prominent business figure in China.
    2. Huawei is the world’s second-largest maker of smartphones (behind Samsung) and one of the world’s largest makers of telecommunication equipment.
    3. Huawei and ZTE are considered by some US officials as a threat to national security due to the potential for spying on US companies or agencies that use their equipment.

Check back for more news as they develop.