VANCOUVER/LONDON (Reuters) – Huawei Technologies Co Ltd’s chief monetary officer faces U.S. accusations that she coated up her firm’s hyperlinks to a agency that attempted to promote gear to Iran regardless of sanctions, a Canadian prosecutor mentioned on Friday, arguing towards giving her bail whereas she awaits extradition. The case towards Meng Wanzhou, who can also be the daughter of the founding father of Huawei [HWT.UL], stems from a 2013 Reuters report right here concerning the firm’s shut ties to Hong Kong-based Skycom Tech Co Ltd, which tried to promote U.S. gear to Iran regardless of U.S. and European Union bans, the prosecutor informed a Vancouver court docket.(reut.rs/2QlvzXW) U.S. prosecutors argue that Meng was not truthful to banks who requested her about hyperlinks between the 2 companies, the court docket heard on Friday. If extradited to the United States, Meng would face costs of conspiracy to defraud a number of monetary establishments, the court docket heard, with a most sentence of 30 years for every cost. No determination was reached after almost six hours of arguments and counter-arguments, and the listening to was adjourned till Monday 10:00 a.m. Pacific Time (1800 GMT). Meng, 46, was arrested in Canada on Dec. 1 on the request of the United States. The arrest was on the identical day that U.S. President Donald Trump met in Argentina with China’s Xi Jinping to search for methods to resolve an escalating commerce battle between the world’s two largest economies. The information of her arrest has roiled inventory markets and drawn condemnation from Chinese authorities, though Trump and his high financial advisers have downplayed its significance to commerce talks after the 2 leaders agreed to a truce. Friday’s court docket listening to was meant to determine on whether or not Meng can put up bail or if she ought to be stored in detention. The prosecutor opposed bail, arguing that Meng was a excessive flight threat with few ties to Vancouver and that her household’s wealth would imply than even a multi-million-dollar surety wouldn’t weigh closely ought to she breach circumstances. Meng’s lawyer, David Martin, mentioned her prominence made it unlikely she would breach any court docket orders. “You can trust her,” he mentioned. Fleeing “would humiliate and embarrass her father, whom she loves,” he argued. Huawei CFO Meng Wanzhou, who was arrested on an extradition warrant, seems at her B.C. Supreme Court bail listening to in a drawing in Vancouver, British Columbia, Canada December 7, 2018. REUTERS/Jane Wolsak The United States has 60 days to make a proper extradition request, which a Canadian choose will weigh to find out whether or not the case towards Meng is powerful sufficient. Then it’s as much as Canada’s justice minister to determine whether or not to extradite her. A spokesman for Huawei mentioned on Friday the corporate has “every confidence that the Canadian and U.S. legal systems will reach the right conclusion.” The firm has mentioned it complies with all relevant export management and sanctions legal guidelines and different rules. IRAN BUSINESS The U.S. case towards Meng entails Skycom, which had an workplace in Tehran and which Huawei has described as one among its “major local partners” in Iran. In January 2013, Reuters reported that Skycom, which tried to promote embargoed Hewlett-Packard laptop gear to Iran’s largest mobile-phone operator, had a lot nearer ties to Huawei and Meng than beforehand recognized. In 2007, a administration firm managed by Huawei’s mum or dad firm held all of Skycom’s shares. At the time, Meng served because the administration agency’s firm secretary. Meng additionally served on Skycom’s board between February 2008 and April 2009, in accordance with Skycom data filed with Hong Kong’s Companies Registry. Slideshow (9 Images)Huawei used Skycom’s Tehran workplace to offer cellular community gear to a number of main telecommunications firms in Iran, folks accustomed to the corporate’s operations have mentioned. Two of the sources mentioned that technically Skycom was managed by Iranians to adjust to native regulation however that it successfully was run by Huawei. Huawei and Skycom had been “the same,” a former Huawei worker who labored in Iran mentioned on Friday. A Huawei spokesman informed Reuters in 2013: “Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the U.N. We also require our partners, such as Skycom, to make the same commitments.” U.S. CASE The United States has been wanting since at the least 2016 into whether or not Huawei violated U.S. sanctions towards Iran, Reuters reported in April. The case towards Meng revolves round her response to banks, who requested her about Huawei’s hyperlinks to Skycom within the wake of the 2013 Reuters report. U.S. prosecutors argue that Meng fraudulently mentioned there was no hyperlink, the court docket heard on Friday. U.S. investigators consider the misrepresentations induced the banks to offer companies to Huawei regardless of the very fact they had been working in sanctioned international locations, Canadian court docket paperwork launched on Friday confirmed. The listening to didn’t identify any banks, however sources informed Reuters this week that the probe centered on whether or not Huawei had used HSBC Holdings (HSBA.L) to conduct unlawful transactions. HSBC shouldn’t be underneath investigation. U.S. intelligence companies have additionally alleged that Huawei is linked to China’s authorities and its gear might include “backdoors” to be used by authorities spies. No proof has been produced publicly and the agency has repeatedly denied the claims. The probe of Huawei is much like one which threatened the survival of China’s ZTE Corp (0763.HK) (000063.SZ), which pleaded responsible in 2017 to violating U.S. legal guidelines that prohibit the sale of American-made know-how to Iran. ZTE paid a $892 million penalty. Reporting by Julie Gordon in Vancouver and Steve Stecklow in London; Additional reporting by Anna Mehler Paperny in Toronto, David Ljunggren in Ottawa, Karen Freifeld in New York, Ben Blanchard and Yilei Sun in Beijing, and Sijia Jiang in Hong Kong; Writing by Denny Thomas and Rosalba O’Brien; Editing by Muralikumar Anantharaman, Susan Thomas and Sonya HepinstallOur Standards:The Thomson Reuters Trust Principles.