A California technology company owner has been arrested after US federal prosecutors accused him of helping smuggle more than $300 million worth of export-controlled computer servers containing US-made graphics processing units (GPUs) to China.
Greg Lui, 38, also known as Yiu Kong Lui, was arrested on October 1 and charged in a three-count federal indictment, according to the US Department of Justice . Lui is the owner of Earthmade Computer Inc., a technology company based in the City of Industry, California. The case centers on allegations that Lui and his co-conspirators used third countries, false documents and freight-forwarding arrangements to get restricted technology to China without the required US export licenses.
How the alleged China chip-smuggling scheme worked
In one example cited by the DOJ, Lui submitted a purchase order in January 2024 for 27 servers worth about $7.614 million. A later email to a Malaysian government official allegedly confirmed that the 27 servers had been transshipped to a buyer in China. From January through October 2024, Earthmade allegedly received more than $176 million from two Malaysia-based shipment companies, according to the indictment.
Lui and his co-conspirators allegedly sent restricted servers to countries including Malaysia and Singapore, where the required US export license was not needed, before arranging for them to be re-exported to China, according to the indictment. Prosecutors also allege that false documentation was provided to US manufacturers, making it appear that the servers were being shipped to permitted destinations and end users. The servers were shipped from Los Angeles to Kuala Lumpur.
What charges does Greg Lui face?
Earthmade was used between 2023 and 2024 to purchase and ship export-controlled technology , according to the indictment. If convicted on all charges, he faces statutory maximum sentences of 20 years on the conspiracy count, 20 years on the money-laundering count and 10 years on the smuggling count, according to the DOJ.
US authorities said the investigation involves the Commerce Department’s Bureau of Industry and Security, the Defense Criminal Investigative Service and the FBI’s Counterintelligence and Espionage Division. Lui is a San Gabriel resident and the owner of Earthmade Computer Inc., which prosecutors describe as a closely held technology company. Prosecutors allege that the servers contained high-end GPUs manufactured by companies specializing in Super Intelligence, or SI, computing. They say Lui knew the actual end users of the servers were in China despite documents indicating otherwise. The charges against him include conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling and conspiracy to commit money laundering. Lui faces three federal counts involving export-control violations, smuggling and money laundering. The DOJ stressed that the indictment contains allegations only. Lui is presumed innocent unless and until proven guilty beyond a reasonable doubt in court.
