(Reuters) – Huawei's CFO Meng Wanzhou has reached an agreement with U.S. prosecutors to end the case of bank fraud against her, Assistant U.S. Attorney David Kessler told a New York judge on Friday, a step that would allow for her to finally leave Canada and alleviate a tension between China and the United States.
A trial is underway in Brooklyn federal court, where the US government said it will discuss a settlement of charges against Meng, according to a court on Friday. Ms practically participated in the hearing from Canada and did not plead guilty to the charges.
Ms. Meng was arrested at Vancouver International Airport in December 2018 due to a US warrant and charged with allegations of bank and bank fraud for allegedly misleading HSBC about the telecommunications equipment business in Iran, a story first reported by Reuters in 2012.
The agreement applies only Meng, and US accusations remain against the company, according to people familiar with the matter.
Mr. Kessler said that the agreement expires in December 2022 and that as long as she does not break the law, the fees will fall.
In addition to resolving a dispute between the United States and China, the agreement could also pave the way for the release of two Canadians, businessman Michael Spavor and former diplomat Michael Kovrig, who have been held in China since their arrest shortly after Meng was arrested in 2018. In August, a Chinese court sentenced Mr Spavor to 11 years in prison. for espionage.
A Huawei spokeswoman declined to comment. A lawyer for Ms Meng could not be immediately reached for comment.
Ms. Meng, who has also used the English first names "Cathy" and "Sabrina", has said she is innocent and has fought for extradition to the United States from Canada. She is limited to Vancouver and is monitored 24/7 by private security which she pays for as part of her surety agreement.