US adds new criminal charges against Huawei and several subsidiaries, accusing the company of a brazen scheme to steal trade secrets from competitors in America
New charges, including a federal racketeering allegation, add to an indictment unsealed in January 2019 that said Huawei stole trade secrets from US carrier T-Mobile. Huawei disputed the allegations, calling them “without merit."
The new indictment also alleges the company provided surveillance equipment to Iran that enabled the monitoring of protesters during 2009 anti-government demonstrations in Tehran, and that it sought to conceal business that it was doing in North Korea despite economic sanctions there. The superseding indictment, brought by federal prosecutors in Brooklyn, adds to the company's legal woes in the US. It adds charges of racketeering conspiracy and conspiracy to steal trade secrets to an existing criminal case in New York, where the company already faces charges of lying to banks about deals that violated economic sanctions against Iran.
In some instances, prosecutors said, Huawei recruited employees of competitors to steal intellectual property. The company also provided incentives to its own employees by offering bonuses to those who brought in the most valuable stolen information, and it used proxies, including professors at research institutions, in the pursuit of inside information, prosecutors said.
The employee wore a badge that listed his employer as “Weihua," or Huawei spelled with its syllables reversed. “These new charges are without merit and are based largely on recycled civil disputes from last 20 years that have been previously settled, litigated and in some cases, rejected by federal judges and juries," it said. “The government will not prevail on its charges, which we will prove to be both unfounded and unfair.”
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