China’s top cell phone manufacturer Huawei, which has developed some of the most advanced cell phones in the world, may face a criminal trial in early 2026 for misleading banks about its business in Iran.Since 2019, the US has restricted Huawei from access to US technology saying is is engaged in activity contrary to our national security.
According to the original indictment, Huawei relied on its global banking relationships for banking services that included processing U.S.-dollar transactions through the United States. U.S. laws and regulations generally prohibited these banks from processing transactions related to Iran through the United States. Relying on the repeated misrepresentations by Huawei, these banks continued their banking relationships with Huawei. One bank cleared more than $100 million worth of Skycom-related transactions through the United States between 2010 and 2014.
In furtherance of this scheme to defraud, and as alleged in the original indictment, Huawei and its principals repeatedly lied to U.S. government authorities about Huawei’s business in Iran in submissions to the U.S. government, and in responses to government inquiries. For example, Huawei provided false information to the U.S. Congress regarding whether Huawei’s business in Iran violated any U.S. law. Similarly, as indicated in the indictment, in 2007 — months before Huawei orchestrated the purported sale of Skycom to another Huawei-controlled entity — Huawei’s founder falsely stated to FBI agents that Huawei did not have any direct dealings with Iranian companies and that Huawei operated in compliance with all U.S. export laws.
After one of Huawei’s major global banking partners (identified as Financial Institution 1 in the indictment) decided to exit the Huawei relationship in 2017 because of Huawei’s risk profile, Huawei allegedly made additional misrepresentations to several of its remaining banking partners in an effort to maintain and expand those relationships. Huawei and its principals are alleged to have repeatedly and falsely claimed that Huawei had decided to terminate its banking relationship with Financial Institution 1, when in fact it was Financial Institution 1 that had decided to terminate the banking relationship. Through these misrepresentations, Huawei was able to continue its banking relationships with its other banks. Here is a copy of the original indictment. Charges against Cathy Meng have been dismissed: file:///C:/Users/Jeffn1/Downloads/huawei_et_al._indictment_0_0%20(3).pdf
Jeffrey Newman is a whistleblower lawyer whose firm represents whistleblowers in healthcare fraud cases under the False Claims Act (FCA) and also under the Securities and Exchange, FINCEN and CFTC whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
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