U.S. sanctions are 'centrepiece' of case against Meng Wanzhou: lawyer

January 20, 2020 admin British Columbia, China, Huawei, Iran, local news, national, vancouver

Credit to Author: Keith Fraser| Date: Tue, 21 Jan 2020 01:24:33 +0000

Lawyers for Meng Wanzhou argued Monday that the core of the government case for extradition of the Huawei executive to the United States is American sanctions against Iran.

The first phase of Meng’s extradition hearing began in B.C. Supreme Court in Vancouver on Monday and dealt with double-criminality — whether the crime for which Meng is being sought by the United States is also a crime in Canada.

U.S. authorities allege that Meng, the chief financial officer of the Chinese tech giant and daughter of the company’s founder, committed fraud when she allegedly lied to a bank in 2013 about her company’s dealings with a former subsidiary accused of breaching the U.S. trade sanctions in Iran.

At the time, Meng, was meeting with HSBC bank officials in Hong Kong after a news report that alleged Huawei still had links with the subsidiary, a move that might jeopardize Huawei’s multi-million dollar financial dealings with the bank and put the bank at risk of scrutiny from U.S. authorities.

VANCOUVER, BC., January 20, 2020 – Extradition hearing for Huawei executive Meng Wanzhou leaves her home for the first day of her extradition hearing in Vancouver, BC., January 20, 2020. The lawyer for the Attorney General will make opening arguments and the defence will argue double criminality. (NICK PROCAYLO/PNG) 00060095A ORG XMIT: 00060095A [PNG Merlin Archive] NICK PROCAYLO /PNG

VANCOUVER, BC., January 20, 2020 – Demonstrators outside BC Supreme Court as the extradition hearing for Huawei executive Meng Wanzhou begins in Vancouver, BC., January 20, 2020. The lawyer for the Attorney General will make opening arguments and the defence will argue double criminality. (NICK PROCAYLO/PNG) 00060095A ORG XMIT: 00060095A [PNG Merlin Archive] NICK PROCAYLO /PNG

Protesters hold a large sign against China's Uighur camps, labeled as vocational training centres by the Chinese government, outside the home of Huawei Chief Financial Officer Meng Wanzhou before her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Huawei Chief Financial Officer Meng Wanzhou is greeted by a member of her security as she leaves her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Huawei Chief Financial Officer Meng Wanzhou walks with a member of her security as she leaves her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

The ankle monitor of Huawei Chief Financial Officer Meng Wanzhou is visible as she leaves her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Huawei Chief Financial Officer Meng Wanzhou leaves her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Media photograph a vehicle driving Huawei Chief Financial Officer Meng Wanzhou from her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Huawei Chief Financial Officer Meng Wanzhou greets the media as she leaves her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Huawei chief financial officer Meng Wanzhou leaves her Vancouver home to begin her extradition hearing in British Columbia Supreme Court, on January 20, 2020 in Vancouver, British Colombia. – The chief financial officer of China's Huawei arrived Monday morning at a Canadian court for the start of a hearing for her extradition to the United States. Meng Wanzhou wore a black dress that exposed an electronic ankle bracelet that authorities ordered her to wear as a condition of her release from custody. She made no comment on entering the court. (Photo by Don MacKinnon / AFP) DON MACKINNON /AFP

A protester holds a picture of Michael Kovrig and Michael Spavor, two Canadians detained in China, and a large sign against China's Uighur camps outside the home of Huawei Chief Financial Officer Meng Wanzhou before her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Lindsey Wasson By Lindsey Wasson /REUTERS

Huawei Chief Financial Officer Meng Wanzhou, wearing an ankle monitor, leaves her home to attend the start of her extradition hearing at B.C. Supreme Court in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Jennifer Gauthier By Jennifer Gauthier /REUTERS

VANCOUVER, BC – JANUARY 20: Members of the media and public line up outside a British Columbia Supreme courthroom on the first day of the extradition trial for Huawei Technologies Chief Financial Officer Meng Wanzhou on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

VANCOUVER, BC – JANUARY 20: Members of the media stand outside the home of Huawei Technologies Chief Financial Officer Meng Wanzhou as they wait for her to leave for a court appearance on the first day of her extradition trial on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

VANCOUVER, BC – JANUARY 20: Members of the media and public line up outside a British Columbia Supreme courtroom on the first day of the extradition trial for Huawei Technologies Chief Financial Officer Meng Wanzhou on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

VANCOUVER, BC – JANUARY 20: Huawei Technologies Chief Financial Officer Meng Wanzhou is escorted by her security personnel as she leaves court during a break for lunch on the first day of her extradition trial on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

Huawei Chief Financial Officer Meng Wanzhou leaves B.C. Supreme Court on a lunch break during the start of her extradition hearing in Vancouver, British Columbia, Canada January 20, 2020. REUTERS/Jennifer Gauthier By Jennifer Gauthier /REUTERS

VANCOUVER, BC – JANUARY 20: Huawei Technologies Chief Financial Officer Meng Wanzhou leaves her house on her way to a court appearance on the first day of her extradition trial on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

VANCOUVER, BC – JANUARY 20: Huawei Technologies Chief Financial Officer Meng Wanzhou exits her vehicle as she arrives at her court appearance on the first day of her extradition trial on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

VANCOUVER, BC – JANUARY 20: Supporters of Huawei Technologies Chief Financial Officer Meng Wanzhou stand outside the courthouse as she arrives at her court appearance on the first day of her extradition trial on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

VANCOUVER, BC – JANUARY 20: Huawei Technologies Chief Financial Officer Meng Wanzhou wears a GPS ankle bracelet as she exits her vehicle as she arrives at her court appearance on the first day of her extradition trial on January 20, 2020 in Vancouver, Canada. The United States government accused Wanzhou of fraud after HSBC continued trade with Iran while sanctions were in place. Jeff Vinnick /Getty Images North America

Richard Peck, a lawyer for Meng, told Associate Chief Justice Heather Holme of the B.C. Supreme Court that in a typical extradition case, the issue of double-criminality was not contentious.

“This case however is founded on an allegation of breach of U.S. sanctions, sanctions which Canada has expressly repudiated,” Peck told the judge. “The (United States) has cast this matter as a case of fraud against a bank. In our respectful submission this is an artifice. In reality, sanctions violation is the essence of the alleged misconduct.”

This courtroom sketch by Jane Wolsak and released to AFP by the artist shows Huawei chief financial officer Meng Wanzhou attending her extradition hearing in British Columbia Supreme Court in Vancouver, British Columbia on January 20, 2020. DON MACKINNON / Jane Wolsak/AFP via Getty Images

Peck said he was making his submissions assuming, for the sake of the legal arguments, that Meng had committed the alleged lie.

Meng, who has been on $10 million bail since being arrested in Vancouver in December 2018, arrived at the courthouse accompanied by several members of her security detail.

She initially sat in the prisoner’s dock but after a request from her lawyers, she was allowed by the judge to sit at a desk beside her Mandarin translator.

During the arguments by her lawyers, she sat watching the proceedings intently, at times examining documents referred to by her counsel. Her husband was in court Monday to support her and is expected to attend for the duration of the hearings.

Eric Gottardi, another lawyer for Meng, elaborated on the points raised by Peck, pointing out that the United States didn’t have an “overarching” interest in policing private dealings between Hong Kong bankers and their Chinese clients on the other side of the world.

“It’s the sanctions that are the centrepiece of (Meng’s) alleged misconduct. The sanctions are the reason why we are here today.”

This courtroom sketch by Jane Wolsak and released to AFP by the artist shows Huawei chief financial officer Meng Wanzhou (L) attending her extradition hearing in British Columbia Supreme Court in Vancouver, British Columbia on January 20, 2020. DON MACKINNON / Jane Wolsak/AFP via Getty Images

Several times during Gottardi’s submissions, the judge interjected with questions in a bid to understand the nature of the fraud being alleged.

The judge asked Gottardi that if all of the facts in the Meng case were outlined in a Canadian domestic prosecution, would it paint a viable offence to proceed with.

Gottardi at first responded by saying that he would have to think about the answer to the question and then added that whatever the facts of a domestic prosecution, for a fraud prosecution to proceed there would have to be an element of dishonesty combined with an actual loss or risk of a loss.

Following the afternoon court break, Gottardi said he would think about the question further over night and respond to the judge on Tuesday.

Huawei executive Meng Wanzhou leaves her home for the first day of her extradition hearing . NICK PROCAYLO / PNG

Meng’s lawyers are expected to finish their submissions on Tuesday. Then lawyers for the federal Crown, acting on behalf of U.S. authorities, will begin their arguments. The Crown is expected to conclude Thursday after which the judge will likely reserve judgment for several months.

If Meng wins this stage of the proceedings, the extradition case against her will collapse, although the Crown will be entitled to appeal.

If Meng loses the double-criminality argument, the case proceeds in June to arguments over Meng’s allegation that she was a victim of an abuse of process because of the conduct of the RCMP and Canada Border Services Agency during her arrest at the Vancouver airport.

Meng’s arrest touched off an international furor with the Chinese government alleging that her human rights had been violated. Canadian officials responded that they were merely carrying out their obligations under an extradition treaty.

After her arrest China arrested several Canadian citizens, which critics have alleged was retaliation for the detention of Meng.

kfraser@postmedia.com

twitter.com/keithrfraser

A crowd of onlookers, Meng supporters and international media started gathering outside the Vancouver courthouse early Monday morning. Adam Foster/PNG

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