Greg Lui, 38, also known as "Yiu Kong Lui", of San Gabriel, California, was expected to be arraigned on Friday in the US District Court in downtown Los Angeles.
Lui, the owner of the closely held technology company Earthmade Computer, faces one count each of conspiracy to violate US export controls, outbound smuggling, and conspiracy to commit money laundering, the Justice Department said.
A two-year rerouting scheme through Southeast Asia
According to the Justice Department, Lui and his co-conspirators used Earthmade between 2023 and 2024 to buy and send export-controlled items to China without the required licences from the US Department of Commerce.
Prosecutors allege the group shipped the equipment to Malaysia and Singapore — jurisdictions that do not require such licences — and then illegally re-exported the servers to buyers in China.
The servers contained US-manufactured graphics processing units commonly used for artificial intelligence applications. Lui could not be reached for comment, and Earthmade Computer did not immediately respond to a request for comment, the Justice Department said.
Prosecutors seek detention without bail
In a court filing, prosecutors argued that Lui should be detained without bail because of a "serious risk" that he would flee if released.
"This defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China," First Assistant US Attorney Bill Essayli said in Los Angeles.
"We will aggressively prosecute those who put our national security at risk for profit," Essayli added. The money-laundering conspiracy charge indicates prosecutors believe proceeds of the scheme were moved through financial channels to conceal their origin.
The latest shot in America's chip blockade
The charges mark the latest in a series of federal prosecutions targeting 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.
In March, authorities charged a co-founder of Super Micro Computer with illegally diverting billions of dollars in Nvidia chips to China; he has pleaded not guilty.
The case underscores how export-control enforcement is becoming a central front in the US-China technology rivalry.
With AI computing power now treated as a strategic asset, prosecutors are increasingly pursuing criminal cases against middlemen who exploit gaps in the licensing regime — including rerouting goods through third countries where US licences are not required.
By Hamza Faisal
