Huawei chief financial officer Meng Wanzhou is escorted by her private security detail while arriving at a parole office, in Vancouver, on Wednesday December 12, 2018. THE CANADIAN PRESS/Darryl Dyck

U.S. sanction law not enough to prove Canadian fraud: Meng’s lawyers

Extradition hearing next week to determine whether Meng’s case is one of ‘double criminality’

Lawyers for a Huawei executive wanted on fraud charges in the United States are accusing Crown attorneys of relying on American sanction law to make its case for extradition from Canada.

In documents released by the B.C. Supreme Court Friday, Meng Wanzhou’s lawyers say Canada has rejected similar U.S. sanction against Iran and not only permits banks to do business with Iran-based entities but encourages them to do so.

Her lawyers have said she should not be extradited because her actions wouldn’t be considered a crime in Canada.

Both sides will make their arguments to the court next week during an extradition hearing to determine whether Meng’s case is one of “double criminality,” meaning her actions were criminal in both Canada and the country requesting her extradition.

The United States alleges Meng lied about Huawei’s relationship with its Iran-based affiliate Skycom to one of its bankers, HSBC, putting the financial institution at risk of violating American sanctions.

Meng, who’s Huawei CFO, has denied the allegations and remains free on bail and living in one of her multimillion-dollar homes in Vancouver ahead of a court hearing set to begin Jan. 20.

Lawyers for Canada’s attorney general have argued Meng’s alleged conduct put HSBC at risk of economic loss and that is sufficient to make a case for fraud in Canada.

They have also previously called the focus on sanctions a “complete red herring.”

“This case is about an alleged misrepresentation made by Ms. Meng to a bank that they relied upon, and in so relying, put their economic interests at risk,” Crown prosecutor John Gibbs-Carsley said in May.

In the new documents, Meng’s team accuses the attorney general of advancing two contrary positions: that American sanctions do not need to be considered to determine whether she committed fraud, and that the sanctions are part of the foreign legal environment that gives context to the alleged misconduct.

“It is apparent that exposure to U.S. sanctions risk is a fundamental aspect of the allegation,” the documents say. “In essence, this is a case of U.S. sanction enforcement masquerading as Canadian fraud.”

The documents say that while Meng’s alleged actions could put HSBC at risk of economic deprivation in the United States, the same economic deprivation could not happen to the bank in Canada.

“It is not a crime in Canada to do something in this country that, if done in the U.S. or elsewhere, would be a crime in the U.S.”

READ MORE: China-Canada relations hang in the balance as Meng extradition case to heat up

There is also no real risk that HSBC would be exposed to economic deprivation through criminal or civil penalties in Canada because the Canadian legal system does not penalize “an innocent victim of fraud,” the documents say.

“If … HSBC is an unwitting victim then it cannot be at risk of deprivation under any criminal law or quasi-criminal (regulatory) laws in Canada,” the documents say.

“We do not punish the morally innocent.”

Amy Smart, 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

Axe throwing, road hockey among Salmon Arm food drive festivities

Fill the Pantry event wraps up on Monday, Feb. 17 with day of activities. 600lbs of food collected.

Shuswap artists come into focus for upcoming exhibit

Salmon Arm Art Gallery presents 20/20, an open community exhibition

RCMP report woman arrested after ramming police cruiser

Suspect wanted for crimes allegedly committed in Kelowna, Salmon Arm and 100 Mile House

Salvation Army’s Coldest Night of the Year fundraiser in Salmon Arm welcomes you

Make community connections while taking a walk and contributing to $35,000 goal

Letter: South Shuswap incorporation a foregone conclusion?

Writer overwhelmed with information at committee meeting

Protesters barricade Premier John Horgan’s home ahead of B.C. budget unveiling

Demonstrators from the Extinction Rebellion have blocked the Langford driveway

Ten poisoned eagles rushed to veterinary hospital in Nanaimo

Eagles stricken after eating flesh of euthanized animal at Nanaimo Regional Landfill

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

Osoyoos Indian Band seeks support for casino

The 6000 to 7500 square foot casino would be located on Osoyoos Indian Band land.

B.C. budtenders become first private cannabis workers to unionize in Canada

Two of seven Clarity Cannabis storefronts vote to join UFCW 1518 union

Kids exposed to household cleaners as newborns more likely to get asthma: B.C. study

Air fresheners, plug-in deodorizers, antimicrobial hand sanitizers and oven cleaners were the worst culprits

Alleged drunk driver has licence suspended following Kelowna bridge crash

The 31-year-old Calgary man, was issued a 90-day immediate roadside prohibition

Kelowna RCMP seize illicit drugs from Lower Mission home

Four individuals were taken into police custody but were released pending further investigation

Play sparks curiosity through movement in Vernon

Hands and Feet invites theatre newcomers to fall in love with production

Most Read