Man accused of smuggling $300M in computer servers to China faces federal charges

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The owner of a Southern California-based tech company faces federal charges after allegedly selling millions of dollars' worth of computer servers containing U.S.-manufactured graphics processing units to China, according to the U.S. Department of Justice.

Greg Lui, 38, who also goes by Yiu Kong Lui, was charged with one count of conspiracy to violate the Export Control Reform Act and the Export Administration Regulations, one count of outbound smuggling, and one count of conspiracy to commit money laundering, the department announced in a media release.
"Protecting America's national security means keeping our advanced Super Intelligence technology from being used to strengthen our adversaries' military capabilities," said First Assistant United States Attorney Bill Essayli. "This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China. We will aggressively prosecute those who put our national security at risk for profit."

Between 2023 and 2024, Lui and others used Earthmade to buy and send export-controlled items to China without the required licenses issued by the U.S. Department of Commerce. Instead, the items were sent to countries such as Malaysia and Singapore, where no such license is required, then illegally re-exported to China.

He is expected to make his first court appearance Friday in Los Angeles.

Lui faces a statutory maximum sentence of 20 years in federal prison on the conspiracy count, 20 years in federal prison on the money laundering count, and 10 years in federal prison on the smuggling count.

Categories: Crime & Lawlessness

Tags: California China crime

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3 +1 ZooKeeper 14 hours ago

Arrested for doing business!!! America has become weak

4 +1 0falcon0 18 hours ago

His masters will happily abandon him

4 +1 L.X 20 hours ago

GPU cost 3 times what it should? This fucker is the reason. Those servers were jam-packed with 5090s.

3 +1 kma8675309 1 day ago

China reverse engineers everything. I think gun powder was the last thing they really "invented".

2 +1 L.X 20 hours ago

@kma8675309 We're talking about silicone here, it's not about 'ripping off' the IP, they don't have the facilities to produce those components, hence Nvidia being the most valuable company on the planet right now.

Also, FUCK JENSEN HUANG!