U.S. adds charges Huawei of VIOLATing RICO, violating trade secrets and sanctions

U.S. prosecutors on Thursday added trade secret theft charges to the bank fraud case against Huawei, further intensifying the U.S. fight against Huawei, Reuters reported. The new indictment replaces an indictment filed last year in federal court in Brooklyn, New York, accusing Huawei of conspiring to steal trade secrets from six U.S. technology companies and violating the Extortion And Corruption Organization Act (RICO).

U.S. adds charges Huawei of VIOLATing RICO, violating trade secrets and sanctions

It also contains new allegations of Huawei’s involvement in sanctioned countries, such as Iran and North Korea.

“This indictment paints a shameful picture of an illegal organization that does not respect the law,” Richard Burr, chairman of the Senate Intelligence Committee, and Mark Warner, the vice chairman, said in a joint statement. “

Republican and Democratic senators called it “an important step in the fight against Huawei’s state-led and criminal enterprises.” “

Huawei declined to comment.

Huawei has made it clear of its innocence in the January 2019 indictment, which accuses it of banking and wire fraud, violating sanctions against Iran and obstructing justice.

Huawei Chief Financial Officer Meng Eveningwas was arrested in Canada in December 2018. Meng said he was innocent and opposed extradition.

In an earlier indictment, Meng and Huawei were accused of conspiring to defraud HSBC and other banks by misrepresenting Huawei’s relationship with a company operating in Iran.

It is worth noting that there are no new charges against Meng in the indictment.

Reported that the new trade secret theft charges related to Internet router source code, cellular antenna technology and robotics.

Since 2000, for example, Huawei and its subsidiary Futurewei have been accused of stealing the operating system source code of an Internet router from an unknown company in Northern California, using orders to communicate with the router and operating system manuals.

Huawei then sold its routers in the U.S. as a low-cost version of U.S. companies’ products, the indictment said.

Huawei has also been accused of recruiting employees from other companies, trying to obtain intellectual property from them and using professors at research institutions to obtain technology.

Last November, the Federal Communications Commission voted to ban rural wireless carriers from using $8.5 billion in government funds to buy equipment or services from Huawei.

William Barr, the US attorney general, said the same month that Huawei was “untrustworthy”. Last week, Mr Barr suggested that the US should consider taking control of Huawei’s two main foreign rivals.