Top Huawei executives had close ties to obscure company at centre of U.S. criminal case

Now, Reuters has uncovered previously unreported links in Brazil between Huawei and the company, Skycom Tech Co Ltd, that could offer support to the U.S.

case against the tech giant and Meng Wanzhou, its chief financial officer and daughter of its founder.

Corporate records filed with the state of São Paulo in Brazil show that Huawei and Skycom were closely intertwined there for five years after Huawei disposed of its shares in Skycom in 2007.

Until late 2007, two other top-level Huawei executives also had close ties with Skycom, corporate records filed in Brazil and Hong Kong show.

indictment alleges Huawei controlled Skycom and used it to violate American sanctions by obtaining embargoed U.S.

Huawei and Meng have maintained that while Huawei once owned Skycom, the firm later became in effect an arms-length business partner.

Corporate records show that two additional Huawei executives ran a company that owned Skycom – not just Meng, the sole executive named by prosecutors.

Records also show that Huawei’s control of Skycom extended to Brazil, not only Iran, and lasted through the period of the alleged sanctions violations, long after the Chinese tech giant claims it sold its 100% stake.

But the company records filed in São Paulo show that Skycom also had a little-known presence in Brazil between 2002 and 2012.

The records show that Hu was based in São Paulo in May 2002 when Skycom acquired a small stake in Huawei Brazil, where he was then a manager.

Hong Kong company records show that in 2007, Hu and Guo were directors of a Huawei affiliate, Hua Ying Management Co Ltd, that owned Skycom.

Hua Ying transferred its shares in Skycom to another company that year.

criminal case describe the share transfer as essentially a sham transaction and that Huawei continued to control Skycom as “an unofficial subsidiary.”.

The Brazilian documents, filed with the São Paulo companies registry, show the extent to which Huawei and Skycom also continued to be closely linked in Brazil for five more years.

For example, in July 2008, Huawei Brazil’s two shareholders at that time – Skycom and a Huawei affiliate called Huawei Tech Investment Co Ltd – each appointed the same Chinese person to represent them at Huawei Brazil.

Indeed, during Skycom’s decade as a shareholder of Huawei Brazil until 2012, Skycom was always represented in the Brazilian company by people who were also representing Huawei’s interests, the documents show.

indictment cites Reuters stories in 2012 and 2013 that detailed numerous financial and other ties between Skycom, Huawei and Meng and described an attempt by Skycom in 2010 to obtain embargoed U.S.

In June, Reuters reported that following its 2013 article, Huawei acted to cover up its relationship with Skycom in Iran, according to internal Huawei documents.

The Brazilian records show Skycom became a small shareholder of Huawei Brazil in 2002 without injecting new money into the company.

Instead, Huawei Brazil’s two shareholders at the time – both Huawei-affiliated companies – transferred shares to Skycom.

When Skycom exited Huawei Brazil in 2012, it transferred its shares to yet another Huawei entity, Huawei Technologies (Netherlands) BV, the Brazilian filings show.

authorities allege that Huawei never gave up control of Skycom.

The loan came from another Huawei affiliate, Huawei Tech Investment, they say.

Huawei Tech Investment is the company that co-owned Huawei Brazil with Skycom.