Department of Justice Charges Huawei and Its Executives with 23 Crimes

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cageymaru

cageymaru

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A 10-count indictment was unsealed today that charged Huawei Device Co., Ltd and Huawei Device Co. USA with theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice. The indictment details Huawei's efforts to steal trade secrets from T-Mobile USA and then obstruct justice when T-Mobile threatened to sue Huawei. These actions occurred from 2012 to 2014 and included an internal Huawei announcement that the company was offering bonuses to employees who succeeded in stealing confidential information from other companies.

In 2012, Huawei sought to steal information on a T-Mobile phone-testing robot dubbed "Tappy." In an effort to build their own robot to test phones, Huawei engineers violated confidentiality and non-disclosure agreements with T-Mobile by secretly taking photos of "Tappy," taking measurements of parts of the robot, and in one instance, stealing a piece of the robot so that the Huawei engineers in China could try to replicate it. Huawei corporate denied taking part in the theft even though emails showed it was a company-wide effort involving many engineers and employees. Employees were offered bonuses based on the value of the information that they could steal from other companies and used an encrypted email address to send the information to Huawei. A separate 13-count indictment charges Huawei executives, the company, and its subsidiaries with bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud, violations of the International Emergency Economic Powers Act (IEEPA) and conspiracy to violate IEEPA, and conspiracy to commit money laundering.

"Today we are announcing that we are bringing criminal charges against telecommunications giant Huawei and its associates for nearly two dozen alleged crimes" Acting Attorney General Matthew G. Whitaker said. "As I told Chinese officials in August, China must hold its citizens and Chinese companies accountable for complying with the law." "The charges unsealed today clearly allege that Huawei intentionally conspired to steal the intellectual property of an American company in an attempt to undermine the free and fair global marketplace," said FBI Director Wray. "To the detriment of American ingenuity, Huawei continually disregarded the laws of the United States in the hopes of gaining an unfair economic advantage. As the volume of these charges prove, the FBI will not tolerate corrupt businesses that violate the laws that allow American companies and the United States to thrive."
 
This is typical MO for a Chinese corporation...steal IP, reverse engineer it, present it to their statist government overlords, and hope for some kind of treat/incentive.
 
There are ISPs in the USA that use Huawei, I wonder if this will affect them?
 
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Well, when you can be jailed for anything and everything in China, is it surprising people would do whatever is asked of them?
 
Long time coming. banned where I work, dating back 5 years. Not allowed in our facilities or network. I think the official statement was that their products pose serious security risk to our network, personel and customers. I work in a big future technologies lab. Dont get me wrong I have no weird hangups about the chinese and love me some aliexpess for odds and ends. I think we have several chinese vendors were ok with. My understanding is Hauwei is straight up government spies. Im honestly curious how the other big american tech companies feel about them. Their watches seem really topnotch.
 
Paul_Johnson said:
This is my surprised face.....
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I'm not surprised Huawei did it. We know most/all Chinese companies are nothing but technology thieves.

I am surprised - however - that there is finally a price to pay. I hope there are way way more to follow. I'd like to see executives from every goddamned Chinese company on this list.

I just wish the administration would focus on this IP threat rather than getting upset about the trade imbalance. The trade imbalance isn't very important. IP Theft - on the other hand - is an existential threat.
 
Zarathustra[H] said:
I'm not surprised Huawei did it. We know most/all Chinese companies are nothing but technology thieves.

I am surprised - however - that there is finally a price to pay. I hope there are way way more to follow. I'd like to see executives from every goddamned Chinese company on this list.

I just wish the administration would focus on this IP threat rather than getting upset about the trade imbalance. The trade imbalance isn't very important. IP Theft - on the other hand - is an existential threat.
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You can't tax IP theft, though. ;) Make no mistake - tariffs are taxes on US.
 
Laowai said:
He earned it.
In a country where police can stop you at any time and give you a piss test which will result in incarceration if you pee positive, bringing in nearly 500 pounds of meth is generally a bad fucking idea.
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Obviously that guy isn't much of a loss. Still it's bad PR on China's part to react that way. Just fuels people's negative thoughts on their government. This guy may have been a drug smuggler, but you could find charges for other foreigners as necessary to use as political hostages.
 
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Laowai said:
He earned it.
In a country where police can stop you at any time and give you a piss test which will result in incarceration if you pee positive, bringing in nearly 500 pounds of meth is generally a bad fucking idea.
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There's a good chance the chemicals to make it were bought from China, likely shipped right along with some fentanyl or other synthetic opioids from the same lab or maybe just some bath salts.

Seriously though while I don't support smuggling meth it's ridiculous that the country has such strict laws yet is the only country I've heard of people ordering all of those things from online without using the darknet.
 
Ebernanut said:
There's a good chance the chemicals to make it were bought from China, likely shipped right along with some fentanyl or other synthetic opioids from the same lab or maybe just some bath salts.

Seriously though while I don't support smuggling meth it's ridiculous that the country has such strict laws yet is the only country I've heard of people ordering all of those things from online without using the darknet.
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i heard that he was involved as a accessory (not direct, as per initial sentence) to smuggle synthetic drugs ( 222kg of methamphetamine.. Heh, 222kg. That's prob bs cause 222kg of pills is huge) to Australia from China, not to import into China ( as China itself is the main producer)

ah ok, found a link:https://www.news.com.au/world/asia/...r/news-story/492670a72b96c3fda2bc10281d6049bb


so it's some completely cooked up death sentence

ps. FYI, if you want to smuggle drugs out of China into Australia, just talk to the triad. Don't even need to front any $ as the triad shadow banking network in Australia ( or anywhere with large Chinese diaspora) is well established.

Did he get ratted out because he tried to circumnavigate the triad? hmm, probably.
 
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theBrownLlama said:
i heard that he was involved as a accessory to smuggle synthetic drugs ( 222kg of methamphetamine) to Australia from China, not to import into China ( as China itself is the main producer)

so it's some completely cooked up death sentence
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I see, so I guess it would have been fine if they had paid to have it go through china post.

*Obviously ignoring the political side which is the real reason for the harsh sentence.
 
"Chinese people don't get to spy and snoop on our citizens, that's our job!"

-US Department of justice
 
Ebernanut said:
I see, so I guess it would have been fine if they had paid to have it go through china post.

*Obviously ignoring the political side which is the real reason for the harsh sentence.
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just go to any mahjong ( karaoke, massage , disco ) den and flash a few thousand to establish reputation, find a triad patron, then that's it.

or just ask your Australian buyer to contact the Chinese side in Australia itself, with you to verify in China.
 
lollerwaffle said:
Neither one of them is our friend, why would it be only one or the other? They are just manipulating and attacking us in very different ways.
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Russia and the US have more in common than us and China. Russia is corrupt, but it's a Capitalistic corruption... like the mob running the country. I wouldn't even call Russia an enemy if it wasn't that they want to be a world super power again.

China is authoritarianism right out of 1984.
 
This all very Hollywood isn't it?
Good guys vs Bad guys.

It's a good job US companies and business practices are beyond reproach or we'd all be astonished at the hypocrisy.
 
umeng2002 said:
Everyone looking at Russia... China has been the real enemy for decades.
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lets not make it seem like Russia is all innocent. Motherfuckers used social media and hacked emails to swing elections. Yea china is shit and so is russia. Russia is getting sweet fuckin deals all the way to the moon. Tariff canaidan steel companies and then lift sanctions on Russian companies after 8 months? Russia can burn in hell for all I care. All they are doing is dividing what stood against them. They are doing damage in a way where it is going to hurt for a long time.
 
umeng2002 said:
Russia and the US have more in common than us and China. Russia is corrupt, but it's a Capitalistic corruption... like the mob running the country. I wouldn't even call Russia an enemy if it wasn't that they want to be a world super power again.

China is authoritarianism right out of 1984.
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russia is busy reshaping the world democracies and promoting political havoc from Brexit to U.S elections. All while they get Tarrifs placed on Canadian company and get them waived on Russian companies. All part of the plan. lol.
 
Colonel_Blimp said:
This all very Hollywood isn't it?
Good guys vs Bad guys.

It's a good job US companies and business practices are beyond reproach or we'd all be astonished at the hypocrisy.
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Astonished .... at what exactly? You really think US Companies are conspiring with the United States to steal fucking IP from the Chinese? What IP? Our own IP back from them?

The last time Chinese invented anything was like 4,000 years ago with silk or some shit.

Seriously, do us all a favor and don't lump in American with the Chinese .... at any level ... on anything.

I'm more 'astonished' at you for suggesting we aren't any better.

Sure, I believe the US plays hard ball but I doubt, seriously doubt we pull the same shit as they do.
 
SixFootDuo said:
Astonished .... at what exactly? You really think US Companies are conspiring with the United States to steal fucking IP from the Chinese? What IP? Our own IP back from them?

The last time Chinese invented anything was like 4,000 years ago with silk or some shit.

Seriously, do us all a favor and don't lump in American with the Chinese .... at any level ... on anything.

I'm more 'astonished' at you for suggesting we aren't any better.

Sure, I believe the US plays hard ball but I doubt, seriously doubt we pull the same shit as they do.
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Chinese are not stupid by any means lol. This is mostly company stealing tech for their advantage. To assume Chinese don't know how to build shit is pretty silly. Espionage is a two-way street. Chinese aren't dumb by any means. Seen plenty of them in school with a solid brain lol.
 
shansoft said:
Both are enemies......
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In OPs defense I'm sure he means they're a bigger economical threat than Russia. Even as a supporter of the Trump hostility and tariffs I just don't see us winning that fight. I think the only way we're gonna win this one is to enact extreme isolationism and block sales of products not made in the US altogether or pull our britches up, put all our money back into education and start working on being the technological superpower we could be. Russia on the other hand is about a bunt away from bringing back the curtain which is equally terrifying. The msm right and left both refuse to talk about the fact that we have thousand special forces training the baltic states, prepping for us to go to war any day now and I doubt theres any getting out of it. hell wouldn't surprise me if it just happens right close to the next election. Thatd be a sad joke.

(my bad if I went a little soapbox there)
 
piscian18 said:
In OPs defense I'm sure he means they're a bigger economical threat than Russia. Even as a supporter of the Trump hostility and tariffs I just don't see us winning that fight. I think the only way we're gonna win this one is to enact extreme isolationism and block sales of products not made in the US altogether or pull our britches up, put all our money back into education and start working on being the technological superpower we could be. Russia on the other hand is about a bunt away from bringing back the curtain which is equally terrifying. The msm right and left both refuse to talk about the fact that we have thousand special forces training the baltic states, prepping for us to go to war any day now and I doubt theres any getting out of it. hell wouldn't surprise me if it just happens right close to the next election. Thatd be a sad joke.

(my bad if I went a little soapbox there)
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Are you talking about war with Russia? If so honestly I don't think that is happening with under Trump.
 
NKD said:
Chinese are not stupid by any means lol. This is mostly company stealing tech for their advantage. To assume Chinese don't know how to build shit is pretty silly. Espionage is a two-way street. Chinese aren't dumb by any means. Seen plenty of them in school with a solid brain lol.
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if anything they're smarter then the rest of the world, not only have they found an easy way to steal other companies IP's they're also the ones producing the same product for these companies which means they can double dip without the overhead of R&D costs.. if companies actually gave a shit about their IP's being stolen by chinese companies they wouldn't produce that same hardware in chinese factories yet they continue to do it anyways. this is the price they pay for being cheapskates and wanting cheap labor.
 
SixFootDuo said:
Astonished .... at what exactly? You really think US Companies are conspiring with the United States to steal fucking IP from the Chinese? What IP? Our own IP back from them?

The last time Chinese invented anything was like 4,000 years ago with silk or some shit.

Seriously, do us all a favor and don't lump in American with the Chinese .... at any level ... on anything.

I'm more 'astonished' at you for suggesting we aren't any better.

Sure, I believe the US plays hard ball but I doubt, seriously doubt we pull the same shit as they do.
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History repeating itself? It may be a long time ago but the US has been down the same path. In 200 years maybe the Chinese will be crying foul at the next global superpower upstart.

https://foreignpolicy.com/2012/12/06/we-were-pirates-too/
 
Insert "Fry acting shocked but not that shocked gif"

This stuff goes on all the time...some over eager employees got themselves caught and got everyone in trouble.
Huawei will pay a fine, few guys will get fired..business as usual
 
DejaWiz said:
This is typical MO for a Chinese corporation...steal IP, reverse engineer it, present it to their statist government overlords, and hope for some kind of treat/incentive.
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Nono. You forgot to add:
market to developing world, market to developed world, deny any claim for IP theft by original holders!
 
"To the detriment of American ingenuity"

Sorry, you lost me there. I can't forget all those accusations about Huawei spying and to me that is the pot calling the kettle black.
The only state spying I am fully aware of was the US on Merkel and all that stuff about "intercepting" HDD shipping and replacing firmware, and gag orders and whatnot.
Lavabit closed doors, bigger companies simply comply...

I mean, ok Huawei tried to steal trade secrets, go for it, but....

"the FBI will not tolerate corrupt businesses that violate the laws that allow American companies and the United States to thrive."

Yeah unless those corrupt businesses happen to be those very same American companies. (Thinking of some banks, telcos and Facebook for example, btw the FCC has become a joke)

I get it, this is part of the trade war with china, but please, can you really say that with a straight face?

Is all the rhetoric what I can't handle.
 
They can have those IPs now or later - I doubt restraint or respect for copyright laws will be high on their list after they usurp the superpower title. China's exponential industrial growth will outpace their oil reserves, and no one need be told what happens then.
 
viivo said:
They can have those IPs now or later - I doubt restraint or respect for copyright laws will be high on their list after they usurp the superpower title. China's exponential industrial growth will outpace their oil reserves, and no one need be told what happens then.
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Well, it's not as if the Chinese aren't aware of that. They were able to secure oil and natural gas from Russia at a bargain bin fire sale deal, but that's only going to answer for a decade. The Chinese's moving aggressively with renewable, nuclear and EVs, which would cut that dependence out if it plays out.
 
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