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Huawei CFO Charged With Fraud, Deemed “Flight Risk” Whose Bail “Couldn’t Be High Enough”

During the first hearing of Huawei Chief Financial Officer Meng, Canadian prosecutors have revealed the charges over which the US is seeking her extradition: She has been accused of conspiracy to defraud banks due to what prosecutors allege was an attempt to cover up transactions involving a Huawei subsidiary that violated US sanctions against Iran.

Appearing in court wearing a green jumpsuit and without handcuffs, Meng reportedly looked to be in good spirits in a Vancouver courtroom where the prosecutions’ case was detailed publicly for the first time. Specifically, the US alleges that Meng helped conceal the company’s true relationship with a firm called Skycom, a subsidiary closely tied to its parent company as it did business with Iran.

Meng used this deception to lure banks into facilitating transactions that violated US sanctions, exposing them to possible fines. The prosecutor didn’t name the banks, but US media on Thursday reported that a federal monitor at HSBC flagged a suspicious transaction involving Huawei to US authorities, according to Bloomberg. Prosecutors also argued that Meng has avoided the US since learning about its probe into possible sanctions violations committed by Huawei, and that she should be held in custody because she’s a flight risk whose bail could not be set high enough.

During the first hearing of Huawei Chief Financial Officer Meng, Canadian prosecutors have revealed the charges over which the US is seeking her extradition: She has been accused of conspiracy to defraud banks due to what prosecutors allege was an attempt to cover up transactions involving a Huawei subsidiary that violated US sanctions against Iran.

Appearing in court wearing a green jumpsuit and without handcuffs, Meng reportedly looked to be in good spirits in a Vancouver courtroom where the prosecutions’ case was detailed publicly for the first time. Specifically, the US alleges that Meng helped conceal the company’s true relationship with a firm called Skycom, a subsidiary closely tied to its parent company as it did business with Iran.

Meng used this deception to lure banks into facilitating transactions that violated US sanctions, exposing them to possible fines. The prosecutor didn’t name the banks, but US media on Thursday reported that a federal monitor at HSBC flagged a suspicious transaction involving Huawei to US authorities, according to Bloomberg. Prosecutors also argued that Meng has avoided the US since learning about its probe into possible sanctions violations committed by Huawei, and that she should be held in custody because she’s a flight risk whose bail could not be set high enough.

This article first appeared at Zero Hedge.