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

Crib challenge cup winners

55 plus zone 4 winners

Truck broken into, parked by local hotel

Trailer stolen from Ponoka area

VIDEO: Feds warned agricultural sector near ‘tipping point’ due to blockades

Canadian Federation of Agriculture points to lack of propane and feed due to Coastal GasLink dispute

ReProm: Second shot for LGBTQ Calgarians to enjoy milestone as themselves

Centre for Sexuality, a sexual health not-for-profit in Calgary, is holding its first ReProm fundraising gala

Calgary woman charged in aggravated assault of 11-month-old daughter

The girl was brought to the Alberta Children’s Hospital in Calgary with a broken arm

Little-used part of Constitution led to different carbon tax rulings: experts

On Monday, the Alberta Court of Appeal ruled 4-1 that the carbon tax is unconstitutional

Alberta legislature resumes: Focus on jobs and bill to punish protesters

Kenney’s United Conservative government was elected last spring on a mandate to create jobs

Child in hospital following fatal crash that killed father, sibling on B.C. highway

The single vehicle crash occured near Kamloops on Highway 5A

Province commits long term to 4-H in Alberta

10-year funding commitment will sustain re-structured 4-H organization

Do you talk to your spouse about money? 42% of Canadians don’t, poll suggests

Politics, sex, religion top list of taboo subjects for Canadians

Trudeau revisits blackface embarrassment during Black History Month

Photos and a video of Trudeau wearing makeup to darken his skin surfaced during last fall’s election campaign

Most Read