January 28, 2019

U.S. to Huawei: Don’t Lie to Your Bank

Featuring Peter Harrell

Source: The Wall Street Journal

Journalists Samuel Rubenfeld, Mengqi Sun

The Trump administration’s charges against China’s Huawei Technologies Co., announced Monday, included a key message to other companies: You shouldn’t lie to your bank.

Prosecutors alleged that Huawei, its financial chief and other company employees engaged in a long-running scheme to deceive global banks and the U.S. government about its business ties to Iran, according to a 13-count indictment unsealed in Brooklyn, N.Y.

The Shenzhen, China, company, two affiliates and Chief Financial Officer Wanzhou Meng were charged in the case, which also highlights the approach taken by prosecutors to target individuals in corporate criminal cases.

Huawei’s potential sanctions-risk exposure led one of its banks in 2017 to exit its relationship with the company, and the company lied about the ending of that relationship to maintain its accounts at other lenders, prosecutors said.

Read the full article and more in The Wall Street Journal.

Authors

  • Peter Harrell

    Adjunct Senior Fellow, Energy, Economics and Security Program

    Peter Harrell is an adjunct senior fellow at the Center for a New American Security, where he focuses on the intersection of economics and national security. Research interest...