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Huawei CFO Meng Wanzhou can be launched within the occasion of fraud following an settlement with the US

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Huawei CFO Meng Wanzhou arrives at the British Columbia Supreme Court with her security detail for the afternoon session of their extradition hearing on August 4, 2021 in Vancouver, Canada.

Don MacKinnon | AFP | Getty Images

The chief financial officer of Chinese tech company Huawei will be released and will be allowed to return to China after reaching an agreement with the US government over allegations of fraud, prosecutors said in a federal court in Brooklyn, New York, on Friday.

A U.S. district judge accepted the deferred law enforcement agreement, which is scheduled to run through December 1, 2022. Under the agreement, the executive, Meng Wanzhou, confirmed the accuracy of a factual statement and agreed not to commit other crimes or risk prosecution.

Meng, the daughter of Huawei’s founder, was arrested in Canada in December 2018. The US tried to extradite her for bank and wire transfer fraud, claiming she misled a financial institution into violating US sanctions against Iran. The US announced on Friday that it would withdraw its extradition request.

Meng pleaded not guilty to the indictment on Friday. As part of the agreement, however, she assumed “responsibility for her lead role in the commissioning of a fraud scheme for a global financial institution,” said acting US attorney for the Eastern District of New York Nicole Boeckmann in a statement.

According to Boeckmann, Meng admitted, as CFO of Huawei, to have made “several material misrepresentations” about the company’s business in Iran in discussions with an executive at a financial institution. The government claimed it did so in order to continue Huawei’s relationship with the company.

Boeckmann said the admission confirms the core allegations against Meng. Media reports have linked Hong Kong-based HSBC to the case, although the bank previously said the U.S. Department of Justice had confirmed no investigation into the case.

A Huawei spokesman declined to comment.

A lawyer representing Meng said he was “satisfied” with the deal.

“She pleaded not guilty and we expect the indictment will be dismissed with prejudice after fourteen months,” said attorney William W. Taylor III. “Now she can return home to be with her family.”

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