- The Department of Justice (DOJ) accused the Chinese telecommunications company Huawei of conspiring to violate the Racketeer Affected and Corrupt Organizations Act (RICO).
- The Trump administration has been pursuing charges against Huawei for almost a year now as Huawei's geopolitical tensions between the U.S. and China, home country, continue to increase.
- The latest indictment contains information that Huawei has attempted to steal trade secrets from six different US technology companies and "has repeatedly misrepresented its disclosures to US officials, including FBI agents and representatives of the US House of Representatives' Permanent Committee for Intelligence Has made efforts to abuse business secrets. ""
- The company is also alleged to have concealed its involvement in business and technology projects in Iran and North Korea under the code names "A2" and "A9".
- You can find more stories on the Business Insider homepage.
Chinese telecommunications company Huawei and its CFO Meng Wanzhou have been charged with 16 cases of conspiracy and extortion. The Department of Justice (DOJ) announced on Thursday,
A new replacement indictment filed with the federal court said the company had violated the Racketeer Influenced and Corrupt Organizations Act (RICO) and had brought new charges against Huawei for stealing business secrets from American technology companies.
The U.S. accused Huawei of violating confidential agreements with American technology companies after gaining access to its intellectual property. Huawei had a bonus program that rewarded employees who had received confidential information from their competitors, and rewarded them, the Department of Justice claimed.
Huawei did not immediately respond to a request for comment.
"As part of the program, Huawei is said to have introduced a policy to implement a bonus program to reward employees who have received confidential information from competitors," the DOJ wrote in a press release announcing the indictment, "The policy made it clear that employees who provided valuable information should be financially rewarded."
The DOJ also made new allegations against Huawei and its subsidiaries, accusing them of hiding their business in countries under US, EU, and UN sanctions. For example, the indictment alleges that Huawei used code names "A2" and "A9" in internal documents to indicate business in Iran and North Korea.
"When faced with evidence of wrongdoing, the defendants allegedly repeatedly misrepresented their efforts to abuse business secrets against US officials, including FBI agents and representatives of the US House of Representatives' Permanent Committee for Intelligence," the DOJ wrote ,
The Trump administration has been pursuing charges against Huawei for almost a year now as Huawei's geopolitical tensions between the U.S. and China, home country, continue to increase. The company was blacklisted in the US in May to prevent it from doing business with other US companies without government approval. Huawei's CFO Meng Wanzhou faces an extradition process in Canada after he was arrested in December 2018 for covering up Huawei's connections to Iran to sell equipment.
The latest charge follows the US government's allegation that Huawei has spied on people by exploiting "back doors" to law enforcement telecommunications.