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United States Businesses Canada China The Courts

Huawei's CFO Is Being Accused of Fraud, and Her Main Defense Is a PowerPoint (theverge.com) 121

"Today, a bail hearing was held for Huawei's chief financial officer, who was arrested in Canada on Saturday at the request of U.S. law enforcement," reports The Verge. "The CFO, Meng Wanzhou, is facing extradition to the U.S. for conspiring to defraud banking institutions, according to the Star Vancouver." The Verge reports that her main defense is "a PowerPoint presentation that Meng had once given to explain to a bank in Hong Kong that Huawei had not violated any U.S. sanctions." From the report: Many lined up to see Meng's bail hearing today, after the extremely high-profile arrest that signified the first major break in a U.S. probe that has mostly been kept from the public. The U.S. has an arrest warrant out for Meng that was issued by a New York court on August 22nd. It has 60 days from the time of Meng's arrest on Saturday to provide Canadian courts with evidence and intent.

Meng served on the board for a Hong Kong-based company called Skycom, which allegedly did business with Iran between 2009 and 2014. U.S. banks worked with Huawei at this time, so Iran sanctions were violated indirectly, and Meng therefore committed fraud against these banks. Skycom reportedly had connections to Huawei and at the bail hearing today, Gibb-Carsley argued that Skycom was an unofficial subsidiary of Huawei's, using the same company logo. "Huawei is SkyCom," he said, "This is the crux, I say, of the alleged fraud."
The hearing also examined whether Meng would be a flight risk if she was granted the $1 million bail, part of the argument Gibb-Carsley was pushing. "Defense lawyer Martin responded by explaining the Chinese emphasis on saving face, and how Meng wouldn't want her father and Huawei to look bad. Even more than that, 'she would not embarrass China itself,' Martin said."
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Huawei's CFO Is Being Accused of Fraud, and Her Main Defense Is a PowerPoint

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  • by haruchai ( 17472 ) on Friday December 07, 2018 @07:49PM (#57769200)

    Without it, Brett Kavanagh's chances would have been boofed

    • IT was all a distraction. He should have been rejected because his logic is weak and his writing poor.
      • by dcw3 ( 649211 )

        In other words, you don't like him. Got it.

        • Yes, that's exactly right (although he seems fine at a personal level). There are definitely other judges who are more skillful when it comes to the law.
          • by dcw3 ( 649211 )

            My point is that even though I'm a conservative, I dislike him as well. That doesn't disqualify him. The elected president chose him and the Senate confirmed him. I wish our elected officials would stop trying to push the courts into following their ideologies and simply put forth the best legal scholars, but we don't live in Utopia, so here we are. There are a couple other justices that I don't think are the best (on both sides of the spectrum) as well, it doesn't mean their disqualified.

            • Well. no one is disqualified if they get the vote. I think the argument should have centered around his incompetence as a judge rather than his calendar from 30 years ago.
              • by dcw3 ( 649211 )

                Agreed

              • by haruchai ( 17472 )

                Well. no one is disqualified if they get the vote. I think the argument should have centered around his incompetence as a judge rather than his calendar from 30 years ago.

                Once he introduced that calendar, his nomination should have been boofed.
                It clearly showed that an incident as described by Blasey-Ford could have happened on or around July 4th.
                And his conduct was unbecoming a traffic court witness, let alone a high ranking judge

            • by haruchai ( 17472 )

              "simply put forth the best legal scholars, but we don't live in Utopia, so here we are"
              one way to mitigate that is to have term limits for the SCOTUS.
              10-15 years is plenty with staggered retirements so that you don't have a plurality of justices being replaced in a very short period.

              • by dcw3 ( 649211 )

                So, how do you then avoid judges making decisions in favor of people/companies who they'll be working for when their time is up? Term limits doesn't only get rid of the less qualified, it gets rid of the top qualified. I'm all for term limits in Congress and Executive office. Not so much for SCOTUS.

                • by haruchai ( 17472 )

                  So, how do you then avoid judges making decisions in favor of people/companies who they'll be working for when their time is up? Term limits doesn't only get rid of the less qualified, it gets rid of the top qualified. I'm all for term limits in Congress and Executive office. Not so much for SCOTUS.

                  There's nothing *now* from preventing that scary scenario of yours. Federal judges make $200k - 270k which is chump change for industries wanting to reward their friends.
                  In fact, it's likely that's been happening a lot in the past since their salaries were effectively stagnant or frozen for long stretches between 1990 and 2014
                  http://www.uscourts.gov/judges... [uscourts.gov]

                  Being in favor of term limits for Congress but not for judges makes little sense; if they're corrupt, they'll cheat.
                  The private sector can always throw

                  • by dcw3 ( 649211 )

                    The part about it being illegal is preventing it. The way it's done w/o term limits by Congress and regulators is the revolving door, where they get paid big bucks when they exit government. If you don't exit, the only way to get paid is a flat out bribe. I'm not saying it never happens, but I think it's MUCH less likely with lifetime appointments.

  • by Anonymous Coward

    Your honor I could not have been selling pot, I was making this PowerPoint of Cheetos

  • The Earth is flat and the Moon landings were faked! Here, let me show you this PowerPoint presentation as proof!
    I just created a cure for cancer! Here, let me show you this PowerPoint presentation as proof!
    I absolutely did not have sex with that girl. Here, let me show you this PowerPoint presentation as proof!
    I know nothing about any 'tapes'; I am not a crook! Here, let me show you this PowerPoint presentation as proof!
    No collusion! Here, let me show you this PowerPoint presentation as proof!
    If the gl
    • If the developers had realized how versatile PowerPoint was as a proof bringer, there's a fair chance everything would be proven... kind of like any belief set on the internet... oh, wait.
  • Lock up the faceless gray PowerPoint avatars!

    (Boy, I hated that "default avatar" fad. Every big tech co tried to be social media and have everybody upload their ugly mug. The default gray head is still in many products.)

  • That is not any kind of a surprise.

  • I just read the article twice and Iâ(TM)m still very confused. But then again, I am also very drunk.

    • Re: (Score:3, Informative)

      by Sarten-X ( 1102295 )

      Intoxication might also be the reason for the headline.

      When you sober up, here's a different summary: Huawei has ties to a company named SkyCom. SkyCom did business with Iran, while Huawei did business with US banks, and Huawei was saying (to the banks) that they weren't doing any business with Iran. Mrs. Meng is on the board for both companies.

      The real legal questions, then, are:

      • 1) Is SkyCom actually Huawei? The business ties seem to be close, but whether it's considered a separate entity enough that Huaw
      • by dcw3 ( 649211 )

        "...U.S. law is not enforceable on Chinese companies (despite the theories of the tinfoil-hat crowd). "

        Huawei has a U.S. address. They do business in the U.S. Their money flows through U.S. banks. If you think the U.S. has no way to enforce penalties against them, you're delusional.

  • If my PowerPoint's Da Shit, you must Acquit!

  • That's like being in high school, and writing a letter saying that you have your parents permission to not need your parents permission for things.
  • Especially if I were involved in some high tech industry or IP transfer. How many Americans will be needed to trade for one Chinese high tech company officer?
    • by gtall ( 79522 )

      I'm not saying that arrest was fair, but China has a history of stealing people too. Forgetting the individuals they''ve stolen, they have also stolen Tibet, and are busing stealing UigherLand I forget what that province is called). The latter constitutes stealing because they are resettling it with Han Chinese, just like they are doing in Tibet. Taiwan is next on the agenda because the fearless leaders of the Chinese Communist Party do actually fear (1) having no legitimacy to govern, (2) a land of free Ch

      • by dryeo ( 100693 )

        Kinda like stealing Hawaii and populating it with Americans or stealing chunks of Mexico and populating it with English speakers. Or perhaps like stealing a good chunk of N. America from the occupants and doing all kinds of nasty stuff to the original inhabitants.

        • by Yagwag ( 5605537 )
          There is a saying about the Ancient Romans, that they created a wasteland and called it peace. But you could say something similar about the cultural impact of Genghis Khan. All of human history has been groups of humans conquering each other for land and resources with pockets of peace created by imperialism. The people you might think of as more natural were no less war-like than our ancestors were. Native American societies were filled with _warriors_ and our ancestors would have had a much harder time
  • by Anonymous Coward

    When no proof of her offence had been shown?

    How could anyone prove innocence absence any evidence of a crime?

    So now In America you have to prove you had NOT committed any crime, rather than the prosecution proving that you had committed a crime?

    This is a kidnapping followed by a witch-hunt trial.

    Welcome to America, the land of kidnapping. This is no different from Somali pirates taking hostages for ransom.

    • Re: (Score:2, Insightful)

      by haruchai ( 17472 )

      Welcome to America, the land of kidnapping. This is no different from Somali pirates taking hostages for ransom

      You have no concept of how great America is. Those Somali losers have to go do their own kidnapping; the USA simply has to ask others like Canada (again) to do it for them

    • Oh there is proof (Score:5, Interesting)

      by SuperKendall ( 25149 ) on Friday December 07, 2018 @09:59PM (#57769648)

      From the original article linked from the summary:

      As there is a publication ban in effect, we cannot provide any further detail at this time. The ban was sought by Ms. Meng.

      There is proof, and SHE blocked us from seeing it so it must be super bad.

      Guilty.

      • by AmiMoJo ( 196126 )

        More likely she asked for privacy to save face and reduce the embarrassment to her family and company.

        Sadly the "different culture = guilty" attitude is all too common.

        • by dcw3 ( 649211 )

          It's all going to come out in future hearing(s), so that seems pretty unlikely.

    • Canada has no Freeze Peach. When she gets down here, then they can tell you what she did. In Canada she can keep it secret, at least the boring parts that happen in Canada.

      The reality is, if they simply agree to extradition they'll have better pre-trial conditions in the US in most cases.

    • She's until proven guilty. If you want to prove that you shouldn't be extradited and face trial, they have a lower burden. Just like a grand jury has to agree you should be prosecuted before the trial starts. They don't need to believe it beyond a reasonable doubt, that's what the later trial is for.

    • So now In America you have to prove you had NOT committed any crime, rather than the prosecution proving that you had committed a crime?

      Well, that is so if you are (A) one of the least privileged 99.9%; or (B) a despised and hated foreigner.

      If you are one of the elite, there is hardly a law you cannot break (or, more precisely, ignore) with utter impunity. That's the way the system works, and that's the way it was set up to work back in 1776-94.

      • by dcw3 ( 649211 )

        Repeating your lie won't make it true...

        https://en.wikipedia.org/wiki/... [wikipedia.org]

        And those are only the fed. There has been a long list of governors, and mayors who are or have done time.

        Here are some CEOs for you. I won't bother you with the Martha Stewarts of the world.
        Jeff Skilling, former CEO of Enron
        Serving 24 years for fraud, insider trading, and other crimes related to the collapse of Enron
        Bernie Ebbers, former CEO of WorldCom
        Serving 25 years for accounting fraud that cost investors over $100 billion
        Dennis

  • by Snotnose ( 212196 ) on Friday December 07, 2018 @09:22PM (#57769524)
    She's worth much more than that, plus dad and/or the Chinese government will pay part of it. Guilty or innocent, put me in her place and I'm running home to China first chance I get.
    • by Anonymous Coward

      No... it's bait. They want her to bail out and run so there will be no trial and she can be assumed guilty.

    • by Anonymous Coward
      You might flee, such a high profile Chinese person would almost certainly not. The risk to her family back home (unlike America being rich doesn't protect you in China) and the embarrassment would be too much.
    • How far will you get with travel bans and no passport? You act like it's a case of spending a bit of money and then walking to the airport and waving goodbye. You will actually find yourself in a far more difficult position, even if you weren't in such a high profile situation.

      There's a reason we still talk about a certain high profile person who's still hiding in an embassy somewhere.

      • by gtall ( 79522 )

        sheesh, do you really think China won't find a way to spirit her out of the country even with travel bands and no passport? What do you take the Chinese government for? Honorable civil servants who follow rule of law instead of the merry band of cut-throat power addicts who view the world as something to be cowed and owned into submission?

        • sheesh, do you really think China won't find a way to spirit her out of the country even with travel bands and no passport? What do you take the Chinese government for?

          What do you take the Chinese government for? Have you been watching too many spy movies? They may find such a way, with incredibly difficulty and a fucking huge international relations debacle as a result.

  • I'm sorry (Score:2, Interesting)

    As someone who lives in Canada, I'd like to apologize for Canada helping the US to enforce its imperialistic policies. People of the world have to understand that we Canadians do not have any kind of backbone. The only thing we can do is to submit and then to apologize, exactly like I'm doing.

    Again, I'm sorry.

    • by fred911 ( 83970 )

      "Canadians do not have any kind of backbone."

      Well you guys make Molsen.. oh wait, looks like we fucked that one up. For that, we're both sorry.

    • Re: (Score:2, Insightful)

      by Anonymous Coward

      Are you a Canadian Citizen?

      If she committed a crime, whhttps://news.slashdot.org/story/18/12/07/2315243/huaweis-cfo-is-being-accused-of-fraud-and-her-main-defense-is-a-powerpoint#y do you apologize? How are you so sure she did not commit a crime?

      Do you think corrupt leaders of state run business in China would be a better partner and protector of your freedom in Canada than the United States?

      As someone who is a good friend and admirer of Canada, your comment bothers me.

      For more than 100 years Canada and th

      • For more than 100 years Canada and the United States have been partners against all types of dictatorships and evil.. The world is evil. Communist China is evil.

        Surely you don't really believe a word of that. At any rate, by posting it you have lost all credibility.

        The world is NOT black and white, good versus evil. It contains a lot of people who do very good things, and a lot of people who do very bad things; those people are pretty evenly distributed. Largely, the amount of good or harm an individual does is a matter of opportunity.

        "If only there were evil people somewhere insidiously committing evil deeds, and it were necessary only to separate them from the re

    • by Anonymous Coward

      Except for Jordan Peterson.

    • It's called an Extradition Treaty [oas.org]

  • America, home of the fucked and the... no, that's it.
  • Amazon... everywhere people are desperate.
  • US general has a question for Google: Why will you work with China but not us?

  • Useful precedent (Score:5, Interesting)

    by Archtech ( 159117 ) on Saturday December 08, 2018 @05:58AM (#57770488)

    As I understand it, a US court has ordered the arrest and extradition of a Chinese corporation's CFO on charges of fraud.

    Does that mean that Chinese, European and other countries' courts will now be able to arrest and extradite the American executives responsible for the 2008 crash? Between them they caused trillions of dollars of losses worldwide, not a penny of which they paid themselves. Governments had to milk their taxpayers for said trillions in order to "make good" the balance sheets and reserves of supposedly system-critical banks and other financial institutions.

    This was the biggest fraud in the history of the world, yet how many executives have been indicted in the USA? https://radiofreethinker.files... [wordpress.com]

    Zero.

      “Ron Suskind’s Confidence Men reported that on March 27 2009, just two months after taking office, [Obama] invited the executives of thirteen leading Wall Street institutions to the White House. After listening to their arguments for why banks had to go on paying bonuses (ostensibly to get the best talent to manage their money), Obama told them: ‘Be careful how you make those statements, gentlemen. The public isn’t buying that’. He explained that only he could provide them with the political shield needed to forestall public pressure for reform, not to mention prosecution of financial fraud. ‘My administration is the only thing between you and the pitchforks’”.

    - Michael Hudson, "Killing the Host", page 253

    • by Anonymous Coward

      This is a fabulous idea! I doubt you'll find any US citizen that would be upset for someone, nay ANYONE, finally brought to justice over that fiasco.

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