Huawei executive Meng loses key B.C. court decision in extradition case

China tech giant Huawei executive Meng Wanzhou will continue to face extradition to the U.S.

Associate Chief Justice Heather Holmes rejected Meng’s argument the process should be stopped because the accusations are political at heart and do not constitute a crime in Canada — an essential element under the extradition treaty.

Arrested at Vancouver International Airport in December 2018, Meng is wanted in the United States for conduct Washington considers a violation of U.S.-imposed sanctions against Iran.

Meng’s lawyers asked Holmes to halt the extradition process because her conduct would not amount to fraud if committed in Canada — failing to meet the so-called “double-criminality” requirement — because the country had no sanctions against Iran.

“She is said to have made false statements to HSBC in 2013, significantly understating Huawei’s relationship with Skycom Tech.

The associate chief justice said two articles published in December 2012 by Reuters associating Huawei with Skycom’s U.S.-related business dealings in Iran precipitated the charges.

The articles reported that Huawei and Skycom had “close ties” and that Skycom was one of Huawei’s “major local partners” in Iran.

They also noted Meng sat on Skycom’s board from February 2008 to April 2009, and in 2007 she was company secretary for a Huawei holding subsidiary that owned 100 per cent of Skycom’s stock, Holmes pointed out.

22, 2013, Meng assured senior HSBC representatives there was no substance to the allegations.

“Although Huawei had sold its shareholding in Skycom some years before the August 2013 meeting, and Ms.

Meng had resigned from Skycom’s board, Huawei in reality continued to control Skycom and its banking and business operations in Iran,” Holmes said.

“Skycom employees had Huawei email addresses and badges and some used Huawei stationery.

Skycom’s directors, and the signatories to its bank accounts, were Huawei employees.

Meng at the August 2013 meeting in Hong Kong, misrepresenting the actual relationship, are said to have put HSBC at risk of fines and penalties for violating the DPA and for new violations of the U.S.

The Canada Border Services Agency questioned Meng for three hours as part of a “covert criminal conspiracy,” the application alleges, in a fishing expedition to gather evidence against her.

Eventually, Holmes will decide whether Meng should be surrendered to American authorities, but she would likely appeal.