China’s largest technology company, Huawei Technologies Co. Ltd., was slapped with criminal charges today by U.S. prosecutors who allege that it committed bank fraud to violate sanctions against doing business with Iran.

The telecommunications firm has also been charged with stealing trade secrets from a U.S. rival. The charges, filed late Monday in Brooklyn, are the latest move in a wider crackdown on Huawei by western countries, which also allege that its equipment could be used by China’s government to spy on its rivals. They’re also a notable escalation of tensions in the ongoing trade war between the U.S. and China.

The 13-page indictment against Huawei alleges that it, along with its Chief Financial Officer Meng Wanzhou and two affiliated companies, committed bank and wire fraud in connection with their business dealings in Iran. In addition, the firm has been accused of stealing technology from T-Mobile USA Inc. and offering bonuses to employees who could do it successfully.

Christopher Wray, director of the Federal Bureau of Investigation, said in a statement that the charges have exposed Huawei’s “brazen and persistent actions to exploit American companies and financial institutions, and to threaten the free and fair global marketplace.”

The indictment states that Huawei tried to hide its relationship with a company called Skycom Tech Co. Ltd. that does business in Iran, in violation of U.S. sanctions on that country. It further accuses CFO Meng of repeatedly lying to one of Huawei’s major U.S. banking partners about her company’s relationship with Skycom.

In addition to the bank and wire fraud charges, Huawei has also been accused of conspiracy, violation of the International Emergency Economic Powers Act and conspiracy to obstruct justice. Huawei’s subsidiary Huawei USA and Skycom were also charged.

The charges come after Meng was arrested in Canada on Dec. 1 over allegations she committed fraud in order to help Huawei avoid sanctions against Iran. The executive is currently out on bail and fighting extradition to the U.S., a process that’s ongoing.

Huawei has also been accused of stealing information regarding a phone-testing robot built by T-Mobile back in 2012. Huawei allegedly violated confidentiality agreements made with T-Mobile, with its employees were accused of secretly taking photos and recording measurements of the robot, called “Tappy.” They also stole a part of the robot, the rap sheet alleges.

Huawei denied any wrongdoing when those allegations first surfaced, although it did admit that two of its employees had acted improperly. T-Mobile had sought $500 million in damages after filing a civil case against Huawei, but ultimately was awarded just $4.8 million at the conclusion of the case in May 2017.

Analyst Holger Mueller of Constellation Research Inc. said that the charges contained some serious accusations against Huawei.

“It’s never a good thing to get into legal problems, either as an individual or a corporation,” Mueller said. “Huawei has to deal with legal issues around the world. More importantly, it also has to handle the damage to its image and reputation.”

Mueller also touched on a point previously raised by others, that no one has yet to provide any proof of Huawei’s guilt regarding any of the accusations against it. “Let’s not forget that just as with individuals, corporations are also innocent until proven guilty.”

Photo: A4-Nieuws/Flickr