US escalates crackdown on the tech-giant by racketeering charges

The department of justice and the FBI ratcheted up its campaign as they brought 16 allegations against Huawei in a sprawling case today, keeping in view geopolitical situation.
Huawei is alleged to conspire and violate the racketeer influenced and corrupt organizations act (RICO) statute. Huawei and its partners are accused of using contracts with American firms to get access to the trade secrets of American companies, and unauthorized usage of intellectual property to sponsor its business.
The evidence of fraud is Huawei’s attempt to steel code for company 1’s routers, which is used for Huawei products later on. It is a huge possibility that company 1 is Cisco “a U.S. technology company headquartered in the Northern District of California”.
Huawei is charged for industrial espionage. A Huawei-associated engineer said, ““… was discovered in the middle of the night after the show had closed for the day in the booth of a technology company … removing the cover from a networking device and taking photographs of the circuitry inside. Individual-3 wore a badge listing his employer as ‘Weihua,’ HUAWEI spelled with its syllables reversed” while at a trade exhibition. Huawei declared the company has nothing to do with the person in question.
In another case, a technological company shared a presentation deck with Huawei in order to raise commercial interest and looking forward to work with Huawei. From the accusation:
“Immediately upon receipt of the slide deck, each page of which was marked ‘Proprietary and Confidential’ by Company 6, HUAWEI distributed the slide deck to HUAWEI engineers, including engineers in the subsidiary that was working on technology that directly competed with Company 6’s products and services. These engineers discussed developments by Company 6 that would have an application to HUAWEI’s own prototypes then under design”.
The condemnation nowhere to be found encompasses multiple cases of Huawei’s conspiracy in the business world to embezzle intellectual property of the US.
As stated by the department of justice “As part of the scheme, Huawei allegedly launched a policy instituting a bonus program to reward employees who obtained confidential information from competitors. The policy made clear that employees who provided valuable information were to be financially rewarded”, related to the accusation.
A “competition management group” analyzed submission and granted monthly bonuses to those employees who provided stolen data.
The company Huawei made an attempt to obstruct the investigation and presenting false information to the federal investigators. The indictment states: “an official HUAWEI manual labeled ‘Top Secret’ instructed certain individuals working for HUAWEI to conceal their employment with HUAWEI during encounters with foreign law enforcement officials”.
Charges are imposed upon Huawei for suspicious activities in North Korea and Iran. Huawei used code words and cautiously chose partners to hide its moves in the states to avoid international restrictions placed on two regions. The company presented bogus information related to activities in Iran and North Korea.
Meng Wanzhou, the CFO of huawei is imprisoned in Canada due to charges of fraud.
Richard Burr and Mark Warner, the top senators from the senate committee on intelligence made a statement “The indictment paints a damning portrait of an illegitimate organization that lacks any regard for the law”.
Huawei defended “This new indictment is part of the Justice Department’s attempt to irrevocably damage Huawei’s reputation and its business for reasons related to competition rather than law enforcement. The ‘racketeering enterprise’ that the government charged today is nothing more than a contrived repackaging of a handful of civil allegations that are almost 20 years old and that has never been the basis of any significant monetary judgment against Huawei. The government will not prevail on these charges which we will prove to be both unfounded and unfair”.
The Trump administration intends to target the Huawei majority as an effort to refrain Huawei from entering western markets.–Worldwide News

Be the first to comment

Leave a Reply

Your email address will not be published.


*