US alleges California man smuggled $300M in AI servers to China

Greg Lui, 38, also known as "Yiu Kong Lui," of San Gabriel, California, was expected to make his initial appearance and be arraigned on Friday in the US District Court in downtown Los Angeles, the Department of Justice said.

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 DOJ said.

The case is the latest in a series of federal prosecutions that target the alleged smuggling of advanced American computing technology to China, as Washington seeks to prevent Beijing from acquiring chips that could strengthen its military capabilities.

Lui owns Earthmade Computer, a technology company and closely held corporation, the Justice Department said.

From 2023 to 2024, Lui and his co-conspirators used Earthmade to buy and send export-controlled items to China without the required licenses issued by the US Department of Commerce, the Justice Department added. The DOJ alleged they shipped these items to countries such as Malaysia and Singapore, where no such license is required, and then illegally re-exported them to China.