Huawei Technologies Co. Ltd CFO Meng Wanzhou is back in court today to begin what is expected to be weeks of heavy-duty legal arguments in her extradition hearings.
Meng is expected to argue Wednesday that her rights were violated by Canadian authorities when she was arrested at Vancouver International Airport December 1, 2018.
This morning, the defence is focusing on what is expected to be the last of its applications to include more evidence in the case in the coming weeks.
Meng lawyer Frank Addario said the evidence centres around whether the bank HSBC was legitimately put into risk of loss by alleged misrepresentations Meng made to the bank in 2013 to secure loan facilities.
Addario said HSBC was clearly in the know about Huawei’s situation – that it had subsidiary operations in Iran – and therefore inherited no risk from Meng’s presentation in 2013 (if any misrepresentation was made).
Even if a minor risk existed, the additional evidence was meant to show that Huawei was diligent in paying off its debt and HSBC suffered no actual losses on the credit facility.
“There was no risk,” he said. “Even if there was, it was too remote.”
Crown lawyer Robert Frater, however, argued the new evidence sought to be included by Meng is “legally irrelevant,” since the question for the court was not if there was any actual loss from the Huawei loan for HSBC – the new evidence said there was none – but whether HSBC was put into a position of reputational loss and penalties from the U.S. by Meng’s presentations convincing the bank to continue to make loans to Huawei.
”The [records of the case] does not argue there was loss,” Frater said. “Focusing on loan loss is of no assistance. The focus should be on what you have to show in Canadian law for fraud, which is the depravation – the risk of economic loss. Whether there’s loss does not affect it at... and it doesn’t make the [records of the case] unreliable.”
Frater further added that - while the defence said it does not plan on introducing new applications for additional evidence - the fact that Meng's team did not outright rule it out is concerning for the expedited manner the court wants to address the extradition proceedings.
"It's time to move on," Frater said.
Associate Chief Justice Heather also expressed some concerns about Addario's application presentation, noting that anyone giving false information to secure a loan - as Meng allegedly have done - can be prosecuted for fraud regardless of whether actual financial loss took place.
At the end of Monday's session, Holmes reserved judgment on the new evidence application and adjourned the court until Wednesday.
The Meng case, which has caused major international tensions between Canada, China and the United States, is more than two years into its process and has resulted in Beijing arresting two Canadians in retaliation.
Those two men – Michael Kovrig and Michael Spavor – are accused by China of espionage and will go to trial in the near future, according to state media.
Earlier this month, Meng’s defence and the Crown fought fiercely over the topic of whether comments made by former U.S. President Donald Trump poisoned the integrity of the extradition proceedings.
A decision from Holmes on the overall extradition case is expected soon after the arguments formally end in mid-April.
