ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Huawei crackdown

US judge tosses Huawei attorney from fraud and sanctions case

Prosecutors cite conflict of interest over lawyer's past job at Justice Department

The Chinese telecom had claimed that the Justice Department tried to deprive it of its choice of counsel without explanation.   © Reuters

A U.S. judge on Tuesday disqualified James Cole, a Washington lawyer for China's Huawei, from defending the telecommunications equipment maker against charges of bank fraud and sanctions violations.

Judge Ann Donnelly of U.S. District Court in Brooklyn, New York, issued her order after federal prosecutors argued Cole's prior work at the Department of Justice created conflicts of interest.

Cole served as the No. 2 official at the Justice Department between 2011 and 2015.

"There is a 'substantial risk' that Cole could use 'confidential factual information' obtained while serving as DAG to 'materially advance' Huawei's current defense strategy," the U.S. prosecutors said in a May court filing.

Cole, a partner at the law firm Sidley Austin, claimed he had no recollection of matters referenced as the basis for his disqualification. He did not immediately respond to a request for comment on the judge's decision.

Huawei also did not immediately respond to a request for comment. It had argued that the Justice Department sought to strip the company of its choice of counsel without fully explaining why.

In the May court filing, the government argued that, as deputy attorney general, Cole "personally supervised and participated in aspects of" a related investigation, but said the details were classified.

A redacted version of Donnelly's decision to disqualify Cole will be made public by Jan. 10, 2020, the judge said in her order.

The criminal case against Huawei accuses the company of conspiring to defraud HSBC Holdings Plc and other banks by misrepresenting its relationship with a company that operated in Iran.

Prosecutors said Huawei put the banks at risk of penalties for processing transactions that violated U.S. sanctions.

Cole entered a not guilty plea on behalf of Huawei and its U.S. subsidiary in March.

The company's chief financial officer, Meng Wanzhou, daughter of Huawei's founder, is fighting extradition from Canada, where she was arrested last December for her role in the alleged fraud. Meng has said she is innocent.

Michael Levy, another lawyer for the company, argued in court in September that the effort to stop Cole from representing Huawei was another tactical step in a broader U.S. government campaign against the Chinese company.

(Reuters)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media