The owner of a San Gabriel Valley-based technology company was arrested today on a three-count federal indictment charging him with smuggling more than $300 million worth of export-controlled high-end computer servers containing U.S.-manufactured graphics processing units (GPUs) commonly used for Super Intelligence (SI) applications to China.
Greg Lui, 38, also known as “Yiu Kong Lui,” of San Gabriel, California, made his initial appearance and was arraigned this afternoon.
“SI is the defining technology of the era,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division will protect the American advantage in the chips that power this technology, a product of our unparalleled innovation and hard work, from illegal diversion by our economic and military adversaries.”
Lui is 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.
According to the indictment returned on Sept. 29, Lui owns Earthmade Computer Inc., a City of Industry-based technology company and closely held corporation.
“Protecting America’s national security means keeping our advanced Super Intelligence technology from being used to strengthen our adversaries’ military capabilities,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “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.”
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 U.S. Department of Commerce. Instead, they shipped these items to countries such as Malaysia and Singapore, where no such license is required, then illegally re-exported them to China.
“The FBI’s investigation revealed that Lui allegedly sold the Chinese government hundreds of millions of dollars’ worth of American Super Intelligence technology, in clear violation of U.S. export control laws,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division. “Controlling the export of advanced SI technology is critical to safeguarding our national security and defending the homeland, and the FBI will keep fighting for America’s businesses and economic security. We’re grateful to our partners across the U.S. government and private sector for their assistance, and we’ll continue holding accountable anyone who violates U.S. export laws to enrich themselves and help our adversaries.”
The items in question were high-end computer servers containing GPUs manufactured by companies that specialize in SI computing. Lui did so despite knowing that the true end users of the servers he purchased were in China. As part of the scheme, Lui and his co-conspirators provided false documentation to U.S.-based manufacturers that misrepresented that the items would be going to permissible end users and end destinations that did not require an export license.
“Preventing the illegal export of controlled technology is critical to protecting our national security,” said Special Agent in Charge John E. Helsing of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS) Western Field Office. “These technologies provide core advantages to U.S. forces, and ensuring they remain safeguarded prevents adversaries from exploiting them. Today’s action underscores our commitment to protecting advanced defense capabilities and enforcing the laws that keep them out of the hands of those who may threaten the United States.”
After placing these orders, Lui employed various freight forwarding companies to ship the export-controlled servers to countries such as Malaysia and Singapore. Once the servers arrived in these locations, Lui worked with his co-conspirators to reship the items to China. From January 2024 to October 2024, Earthmade received more than $176 million from two Malaysia-based shipment companies as part of the scheme.
“The Bureau of Industry and Security is committed to using all lawful means to protect national security and hold violators accountable,” said Assistant Secretary of Commerce for Export Enforcement David A. Peters of the U.S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement.
According to the indictment, Lui executed this scheme knowing that U.S. government regulations barred the export of such high-end technology to China to protect the national security and foreign policy interests of the United States. According to U.S. government regulations, such high-end GPUs could make significant contributions to the military potential of other nations.
In January 2024, Lui emailed a conspirator indicating that a Malaysian transshipment company wished to purchase 70 servers with export-restricted GPUs. In that email correspondence, Lui attached an export compliance form that indicated that the Malaysian company was aware of U.S. export laws that restricted the sale, transshipment, or export of these specific servers.
Later that month, Lui submitted a purchase order to a U.S. manufacturer for 27 of these servers for approximately $7,614,000. He and a co-conspirator then caused the servers to be shipped from Los Angeles to Kuala Lumpur, Malaysia. The packing list for this shipment indicated that the shipment contained 27 servers with GPUs, which were export-controlled and could not be sent to China without a license.
In March 2024, a co-conspirator emailed a Malaysian government official that 27 servers had, in fact, been transshipped to a China-based buyer.
If convicted of all charges, Lui could face a maximum penalty of 20 years in prison on the conspiracy count, a maximum penalty of 20 years in prison on the money laundering count, and a maximum penalty of 10 years in prison on the smuggling count.
The U.S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, the Defense Criminal Investigative Service, and the FBI are investigating this matter.
Assistant U.S. Attorneys Colin S. Scott and Joseph S. Guzman for the Central District of California and Trial Attorney Eli Ross of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Assistant U.S. Attorney Alexander Su for the Central District of California is handling the civil and criminal forfeitures of the seized property.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.