Summary of Facts
Wanzhou Meng(“Meng”), also known as“Cathy Meng” and“Sabrina Meng,” is the Chief Financial Officer(“CFO”) of Huawei Technologies Co. Ltd.(Huawei”), a corporation organized under the laws of the People’s Republic of China(“PRC”) and the world’s largest telecommunications equipment company. Meng is a citizen of the PRC and a daughter of Huawei’s founder, Ren Zhengfei. In addition to her role as CFO, Meng currently serves as Huawei’s Deputy Chairwoman of the Board, and serves or has served in various roles at other Huawei subsidiaries and affiliates. Meng also served on the board of Hong Kong-based Skycom Tech Co. Ltd.(“Skycom”) in or about and between February2008 and April2009. According to financial statements for Skycom for the years2009 and2010, the“principal activities of Skycom were engaged in[sic] investment holding and acting as a contractor for contracts undertaking[sic] in Iran.”
孟晚舟，英文名Cathy Meng或Sabrina Meng，是华为技术有限公司（以下简称“华为”）的首席财务官。华为依据中国的法律运营，是全球最大的电信设备提供商。孟晚舟是中国公民，其为华为创始人任正非的女儿。除了是CFO，她也是华为的副董事长。她还在多家华为子公司中担任过或正在担任职务。孟晚舟也曾于2008年2月至2009年4月前后，在总部位于香港的Skycom科技有限公司（以下简称“Skycom”）担任过董事。Skycom2009和2010年的财报显示：Skycom的主要业务是投资控股并担任与伊朗（签订）的合同的承包商。
According to information obtained through an investigation by U.S. authorities, including the following, Huawei operated Skycom as an unofficial subsidiary to conduct business in Iran while concealing Skycom’s link to Huawei. In this manner and as explained in further detail below, Huawei could conceal the nature of certain business it was conducting in and related to Iran, which is generally considered a high-risk jurisdiction.
Former employees of Skycom have stated, in sum and substance, that Skycom was not distinct from Huawei. For example, Skycom employees had Huawei email addresses and badges, individuals working in Iran used different sets of stationery(“Huawei” and“Skycom”) for different business purposes, and the leadership of Skycom in Iran were Huawei employees;
Documents show that multiple Skycom bank accounts were controlled by Huawei employees, and Huawei employees were signatories on these accounts between2007 and2013;
Documents and email records show that persons listed as“Managing Directors” for Skycom were Huawei employees;
Skycom official documents, including several Memoranda of Understanding, bore the Huawei logo;
Email correspondence and other records show that all identified Skycom business was conducted using“@huawei.com” email addresses; and
Documents show that a purportedly unrelated entity to which Skycom was supposedly“sold” in2009 was actually also controlled by Huawei until at least in or about2014.
Transactional records and other documents obtained by U.S. authorities further demonstrate that Huawei operated Skycom as an unofficial subsidiary to conduct business in Iran while concealing Skycom’s link to Huawei. Among other things, records obtained through the investigation show that Skycom was used to transact telecommunications business in Iran for major Iranian-based telecommunications companies.
PROVISIONAL ARREST REQUEST FOR WANZHOU MENG
The investigation by U.S. authorities has revealed a conspiracy between and among Meng and other Huawei representatives to misrepresent to numerous multinational financial institutions, including a global financial institution which conducts business in the United States(“Financial Institution1”), Huawei’s business practices, particularly Huawei’s control of Skycom in or about and between2009 and2014. Specifically, Meng and other Huawei representatives repeatedly lied about the nature of the relationship between Huawei and Skycom and the fact that Skycom operated as Huawei’s Iran-based affiliate in order to continue to obtain banking services from multinational financial institutions.
The motivation for these misrepresentations stemmed from Huawei’s need to move money out of countries that are subject to U.S. or E.U. sanctions– such as Iran, Syria, or Sudan– through the international banking system. At various times, both the U.S. and E.U. legal regimes have imposed sanctions that prohibit the provision of U.S. or E.U. services to Iran, such as banking services. Of particular relevance, companies such as Huawei operating in sanctioned countries often need to repatriate income out of those countries by relying on U.S.-dollar clearing transactions, which typically pass through the United States, or Euro-clearing transactions, which typically pass through E.U. countries. Huawei was a customer of Financial Institution1 and the other victim institutions, and conducted a significant amount of its international banking activity, including U.S.-dollar-clearing transactions, with Financial Institution1. The financial institutions at issue, including Financial Institution1, maintained policies by which they would not onboard Iran-based clients or process Iran-related transactions through the United States, so as to avoid exposure to U.S. civil and criminal liability. In response to due diligence inquiries by the banks regarding these internal policies, Meng and other Huawei representatives repeated stated that Huawei did not operate Skycom and that, with respect to Financial Institution1, Huawei would not use Financial Institution1 to process any Iran-related transactions.
Because Meng and other Huawei representatives misrepresented to Financial Institution1 and the other financial institutions about Huawei’s relationship with Skycom, these victim banking institutions were induced into carrying out transactions that they otherwise would not have completed. As a result, they violated the banks’ internal policies, potentially violated U.S. sanctions laws, and exposed the banks to the risk of fines and forfeiture. In particular, these relationships included the clearing of hundreds of millions of U.S.-dollar transactions through correspondent accounts at financial institutions in Eurozone countries. In essence, these misrepresentations exposed the financial institutions to serious harm and denied the institutions the opportunity to make decisions based on the true risk of processing certain transaction and the reputations risk associated with banking high-risk clients such as Huawei.
For example, during the relevant timeframe, Financial Institution1 was under investigation for U.S. sanctions violations involving Iran and later entered into a deferred prosecution agreement pertaining to U.S. sanctions violations involving Iran, and could therefore have suffered criminal consequences for processing Huawei’s Iran-based transactions.