By Jacquie McNish

Lawyers for Huawei Technologies Co. finance chief Meng Wanzhou told a Canadian court that the U.S. has wrongly accused her of lying to banks about the Chinese company's business ties to Iran.

A memo filed with the Supreme Court of British Columbia on Monday by Ms. Meng's lawyers said U.S. authorities made "reckless misstatements" about a presentation she made to HSBC in 2013 when Huawei was negotiating a line of credit.

The memo said her presentation to HSBC stated Huawei "conducts normal business activities in Iran" and worked with a partner, Skycom Tech, "in sales and service in Iran."

Ms. Meng's lawyers added that the alleged U.S. omission of her statements will be added to their claim that U.S. and Canadian officials have abused her legal rights when she was arrested at a Vancouver airport in December 2018.

A spokesman for the U.S. Justice Department wasn't immediately available to comment.

The U.S. is seeking to extradite Ms. Meng from Canada to the U.S. to face charges that she was part of a conspiracy to defraud financial institutions by claiming that Huawei wasn't tied to Skycom. HSBC and other banks cleared hundreds of millions of dollars in transactions that potentially violated international sanctions against Iran.

Ms. Meng, 48 years old, is the daughter of Huawei founder Ren Zhengfei. She is currently on bail and confined to the Vancouver area with an ankle monitor.

She lost an important legal battle last month when a British Columbia judge ruled the U.S. had met a key test to extradite her to the U.S.

The judge has agreed to other hearings in the coming months to consider Ms. Meng's claim that she was unlawfully searched and interrogated before her 2018 arrest at the airport. She also claims the extradition request is improperly based on political motivations at a time the U.S. is seeking the upper hand in prolonged trade and technology tensions with China.

Canada has a low legal threshold for allowing extraditions to the U.S., but cases can take years to resolve as a result of appeals and other legal motions allowed under Canadian law.

Meanwhile, Canada has been caught in the crossfire between the two superpowers. Two Canadians, Michael Kovrig and Michael Spavor, were arrested days after Ms. Meng's arrest and remain in jail in China. Canadian exports, including meat and canola have been blocked by China.

Write to Jacquie McNish at Jacquie.McNish@wsj.com

(END) Dow Jones Newswires

June 15, 2020 18:21 ET (22:21 GMT)

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