A lawyer for Canada's attorney general says international bank HSBC risked economic prejudice, penalties and losses due to alleged misrepresentations by one of Huawei's most senior executives.
Robert Frater told a B.C. Supreme Court judge that Meng Wanzhou, Huawei's chief financial officer, gave an "artful" presentation to HSBC in 2013 that amounted to fraud.
Government lawyers, who represent the United States in the extradition hearing, are trying to convince a judge that there is enough evidence to surrender Meng to the United States to face prosecution.
Meng and Huawei have consistently denied allegations that she put the bank at risk of violating U.S. sanctions against Iran when she allegedly misled HSBC about Huawei's control over Skycom, a company that sold computer equipment in Iran.
Today is the second day of formal arguments in Meng's extradition hearing, which is unfolding more than 2 1/2 years after her arrest at Vancouver's airport soured Canada's relationship with China.
Her long-awaited extradition hearing is proceeding as courts in China prosecute Canadians whose sentencing or detentions are widely seen as retaliation for her arrest.
Frater told the judge hearing the case that the bank was entitled to make decisions about providing financial services based on "honest and forthright information," but that opportunity was denied by Meng.
He says Meng's presentation, which was "generous" in its description of sanctions compliance yet "economical" in its description of Huawei and Skycom's relationship, was not made in isolation.
"The fact that other Huawei employees made similar representations to other banks shows in our submission a co-ordinated plan of reassurance of lenders, with Ms. Meng as an integral part of that plan of reassurance."
