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(Adds prosecutors' arguments in paragraph 7-9)
By Tessa Vikander
VANCOUVER, Jan 22 (Reuters) - Huawei Chief Financial Officer
Meng Wanzhou returned to a Vancouver courtroom on Wednesday
where Canadian prosecutors defended a U.S. extradition request,
saying Meng's alleged bank fraud is the heart of the case that
has strained relations between Ottawa and Beijing.
Canadian prosecutors have told the British Columbia Supreme
Court that Meng was arrested on charges of bank fraud, which is
a crime in both countries, and not because of U.S. allegations
she violated U.S. sanctions against Iran.
Over three days of hearings, Meng's legal team argued that
"double criminality" is at the heart of the U.S. extradition
request.
When ending its arguments on Tuesday, the defence told the
judge that the case is "unique" because "the risk of economic
deprivation arises solely from the operation of a foreign
criminal law for which no corresponding Canadian…law exists."
The United States has charged Meng with bank fraud, and
accused her of misleading HSBC Holdings Plc about
Huawei Technologies Co Ltd's business in Iran.
Canadian prosecutor Robert Frater says fraud, not sanctions
violations, is at the heart of the case. He said even when
considering the foreign legal context of the U.S. sanctions
against Iran, the case for fraud can still be made.
Unlike the defence which encouraged the judge to consider
the importance of Canada's independence and absence of sanctions
against Iran, the prosecutors say the judge should think
independently of that.
"Your job is not to stand up for Canadian sovereignty ...
not to look at jurisdictional issues," Frater said. "That tool
is a matter for the executive .... you have a role that is
described by statute" he added.
Court proceedings show the United States issued the arrest
warrant, which Canada acted on in December 2018, because it
believes Meng covered up attempts by Huawei-linked companies to
sell equipment to Iran, breaking U.S. sanctions against the
country.
EXCLUSIVE NEIGHBOURHOOD
Meng, the daughter of Huawei's billionaire founder Ren
Zhengfei, remains free on bail in Canada, and has been living in
a mansion in Vancouver's exclusive Shaughnessy neighbourhood.
On Wednesday, Meng sat beside her translator, behind her
lawyers, pouring over documents with a pen in hand. The hearing
is taking place in downtown Vancouver, in a specialized high
security courtroom, with bulletproof glass separating the public
gallery from the body of the courtroom.
She has said she is innocent and is fighting extradition in
part because her alleged conduct was not illegal in Canada, an
argument known legally as "double criminality."
Unlike the United States, Canada did not have sanctions
against Iran at the time Canadian officials authorized
commencing with the extradition, her lawyers have said.
"The fact that Canada may have a different sanctions against
Iran than the U.S. should not distract the court from the
necessary inquiry into the essence of the conduct for double
criminality purposes. Deceit and risk of loss are at the heart
of the conduct," Canadian prosecutors have said in previous
court submissions.
On Monday, defense lawyer Richard Peck told the court that
in a typical case, double criminality is not contentious. "This
case however is founded on an allegation of breach of U.S.
sanctions, sanctions which Canada has expressly repudiated," he
said. "Sanctions drive this case," Peck said.
Meng's legal team is currently only scheduled to call
evidence in the last week of April, and a second phase of the
trial, focusing on abuse of process and whether Canadian
officials followed the law while arresting Meng, is set to begin
in June. Closing arguments are expected in the last week of
September and first week of October.
Legal experts have said it could be years before a final
decision is reached in the case, since Canada's justice system
allows many decisions to be appealed.
(Additional reporting by David Ljunggren in Ottawa
Writing by Denny Thomas
Editing by Lisa Shumaker)
