Meng Wanzhou chief financial officer of Huawei is surrounded by security as she leaves B.C. Supreme Court in Vancouver, Wednesday, January, 22, 2020. Wanzhou is in court for hearings over an American request to extradite the executive of the Chinese telecom giant Huawei on fraud charges. THE CANADIAN PRESS/Jonathan Hayward

‘The court is being embarrassed’: Meng lawyers say Crown changed argument

The United States has charged Meng with fraud over allegations she lied to HSBC

A lawyer for Huawei executive Meng Wanzhou says the Crown has changed its arguments, telling a judge who issued an arrest warrant one thing and another to the justice who will rule on the extradition.

A British Columbia Supreme Court hearing wrapped today, focusing on the legal test of double criminality, or whether the conduct Meng is accused of would also be a crime in Canada.

The United States has charged her with fraud over allegations she lied to HSBC about Huawei’s relationship with an Iran-based subsidiary, putting the bank at risk of violating American sanctions.

The defence says the alleged lie would not have put HSBC at financial risk in Canada because the country has no sanctions against Iran, but the Crown argued the bank faced reputational risk that could have led to economic harm.

Meng’s lawyer Scott Fenton says the Crown’s arguments before a judge issuing an arrest warrant in 2018 and in court documents all focus on the risk of violating American sanctions, even when discussing reputational risk.

He says the Crown is now speculating that HSBC could have lost business relationships if it was revealed to be doing business with Iran, regardless of sanctions, and this marks a change in its arguments.

“Milady, in my submission this is wrong. The court is being embarrassed,” Fenton told Justice Heather Holmes.

Meng’s arrest in December 2018 at Vancouver’s airport set off a diplomatic uproar with Beijing detaining two Canadians and restricting some imports in moves widely viewed as retaliation.

She denies the allegations and is free on bail, living in one of her two multimillion-dollar homes in Vancouver.

Holmes reserved her decision after the defence concluded its reply Thursday.

If the judge rules the legal test has been met, then the hearing will proceed to a second phase in June, but if she finds there is no double criminality, Meng will be free to leave Canada.

Her lawyers argued earlier this week that fraud must involve harm or risk of harm, but HSBC wouldn’t have faced any consequences in Canada for doing business in Iran because of the lack of sanctions.

Crown counsel Robert Frater said Wednesday that the judge does not necessarily need to consider American sanctions law for the allegations to amount to fraud in Canada.

HSBC faced significant reputational risk for processing Iran-related transactions because it had already been penalized for doing business in countries including Libya and Sudan, the Crown said.

The Crown also argued that the judge can, according to case law, consider the context of American sanctions in a limited way to understand the risk faced by HSBC.

READ MORE: Fraud case against Meng is straightforward, Crown argues at extradition hearing

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATE: Sylvan Lake RCMP on scene at serious, multi vehicle collision

There is no access westbound on Aspelund Road from the intersection.

Sylvan Lake businesses satisfied working in town, survey

The Chamber surveyed 100 local businesses and found 82 per cent are satisfied working in Sylvan Lake

Sylvan Lake Chamber of Commerce urges for end to rail blockades

Chamber President Keri Pratt urged the MP Blaine Calkins to help bring an end to the disruptions

Sylvan Lakers take a frozen dip for a cause

The annual Polar Bear Dip held during Winterfest is a fundraiser for organizations around town

Sylvan Lake Wranglers advance to face rival Red Deer

The Sylvan Lake Wranglers defeated the Rocky Rams in first round playoff action three games to one

Pipeline dispute: Tories put no-confidence motion on House of Commons agenda

Conservatives say they have no confidence in the Trudeau government to end the rail blockades

Carbon risk for Alberta’s public pension manager questioned

AIMCo says nearly $115 billion invested in carbon-intensive industries is on par with other funds

Worker, shocked at future Amazon warehouse in Nisku, has died: family

Colton Quast, 25, was taken to hospital and put in a medically induced coma

Blockade supporting Wet’suwet’en hereditary chiefs on rail line in Edmonton

‘Cuzzins for Wet’suwet’en’ post pics of wooden crates on line, signs saying ‘No Pipelines on Stolen Land’

Higher costs should kill Trans Mountain pipeline, federal opposition says

Most recent total was $12.6 billion, much higher than a previous $7.4-billion estimate

Trudeau says Wet’suwet’en crisis, rail blockades a critical moment for country

First Nations leaders suggest it may be time to peacefully end the blockades

AFN national chief calls for calm on Wet’suwet’en crisis, rail blockades

Hereditary chiefs in the Wet’suwet’en First Nation oppose the natural-gas pipeline

Federal, B.C. ministers seek meeting with Wet’suwet’en in hope of blockade solution

Coastal GasLink signed agreements with all 20 elected band councils along the pipeline route

Flight to evacuate Canadians from cruise ship ‘expected’ to depart Japan on Thursday

Canadians seeking to return to home by commercial means will be subject to the Quarantine Act

Most Read