Huawei faces 12-count federal trial in Brooklyn over alleged state-backed IP theft

A high-profile criminal trial opened in a Brooklyn federal courtroom, charging Huawei Technologies with twelve counts ranging from racketeering conspiracy to bank fraud. The indictment follows a 2018 investigation into the firm’s alleged breach of U.S. sanctions by routing equipment through Iran and builds on the 2021 deferred-prosecution agreement that allowed CFO Meng Wanzhou to return to China. Prosecutors, led by DOJ attorney Taylor Stout, claim Huawei engaged in a systematic program of intellectual-property theft from U.S. companies—including Cisco’s router code and a T-Mobile device—while providing false statements to banks such as HSBC and Citi.

The defense, represented by Brian Heberlig, characterises the case as a matter of competitive rivalry rather than a coordinated criminal enterprise. Judge Ann Donnelly reminded jurors that the trial targets Huawei alone, not the Chinese Communist Party, though the broader issue of state-directed IP theft remains unresolved. The outcome could have significant implications for U.S. technology security and future enforcement of sanctions.