Send this page to someone via email

Huawei Technologies said it will “vigorously oppose” a motion filed by U.S. prosecutors on Thursday to disqualify its lead defense lawyer from a case accusing the Chinese company of bank fraud and sanctions violations.

According to a filing in the U.S. District Court in Brooklyn, New York, the U.S. government sought to remove James Cole from the case.

READ MORE: Britain’s defence secretary fired in wake of government leaks to Huawei

Cole was the No.2 official at the Justice Department between 2011 and 2015, a period when the United States was obtaining information on how Huawei might have been doing business in Iran in violation of U.S. sanctions.

The filing did not make public why it is seeking to remove Cole from the case. In a letter to the court, prosecutors said they had filed a sealed, classified motion to disqualify Cole and expected to file a public version by May 10.

Story continues below advertisement

Cole, the former U.S. deputy attorney general, is now a partner at law firm Sidley Austin in Washington. He declined to comment.

WATCH: Meng Wanzhou back in court for Mar. 6 hearing

1:57 Meng Wanzhou back in court Meng Wanzhou back in court

Huawei said in an emailed statement to Reuters that it chose Jim Cole as its lawyer in 2017. “We have seen no facts from the government that would justify disqualifying him and denying Huawei its constitutional rights. Huawei will vigorously oppose the government’s motion,” it said.

The case against Huawei has ratcheted up tensions between Beijing and Washington as the world’s two economic powers try to close a trade deal.

Angering the Chinese, the company’s Chief Financial Officer Meng Wanzhou, daughter of Huawei’s founder Ren Zhengfei, was arrested in Canada in December at the behest of U.S. authorities.

Story continues below advertisement

READ MORE: Huawei pleads not guilty to U.S. fraud charges, trial set for March 2020

Huawei was charged with bank and wire fraud, violating sanctions against Iran and obstructing justice. Meng, who must answer to some of the charges, has said she is innocent and is fighting extradition. She is due in court in Vancouver on May 8.

Cole entered a not guilty plea on behalf of the company and its U.S. subsidiary on March 14 in Brooklyn.

The crux of the case is that Meng and Huawei allegedly conspired to defraud HSBC Holdings Plc and other banks by misrepresenting Huawei’s relationship with Skycom Tech Co Ltd, a suspected front company that operated in Iran.

WATCH: Huawei founder defiant on Meng charges, spying allegations: ‘No way the U.S. can crush us’

1:24 Huawei founder says CFO’s arrest was politically motivated: BBC Huawei founder says CFO’s arrest was politically motivated: BBC

Huawei has said Skycom was a local business partner, while the United States maintains it was an unofficial subsidiary used to conceal Huawei’s Iran business.

Story continues below advertisement

U.S. authorities claim Huawei used Skycom to obtain embargoed U.S. goods, technology and services in Iran, and to move money via the international banking system.

U.S. prosecutors said last month they planned to use information about Huawei obtained through secret surveillance in the case.

Timeline: Here’s how the case of Huawei CFO Meng Wanzhou unfolded

In March, Reuters detailed how U.S. authorities secretly tracked Huawei’s activities, including by collecting information copied from electronic devices carried by Chinese telecom executives traveling through airports.

In February, Reuters exclusively reported how an internal HSBC probe helped lead to the U.S. charges against Huawei and its CFO.

The indictment references reporting by Reuters from six years ago that Skycom offered to sell embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator. The reporting detailed links between Huawei and Skycom, including that Meng had served on Skycom’s board of directors in 2008 and 2009.