A California technology company owner has been arrested after US federal prosecutors accused him of helping illegally export more than $300 million worth of restricted 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 faces three federal charges, according to the US Department of Justice. Lui owns Earthmade Computer Inc., a technology company based in the City of Industry, California.
Prosecutors allege that Lui and his co-conspirators used third countries, false documentation and freight-forwarding arrangements to circumvent US export controls and ultimately send restricted technology to China without the necessary licences.
How the alleged scheme operated
According to the indictment, Earthmade purchased and shipped export-controlled servers between 2023 and 2024. Prosecutors allege that the servers contained high-end GPUs used for advanced computing.
Authorities claim the group routed shipments through countries including Malaysia and Singapore, where the necessary US export licence was not required for the initial shipment, before arranging for the equipment to be re-exported to China.
Prosecutors also allege that false information was provided to US manufacturers to make the shipments appear destined for authorised countries and end users.
In one example cited by the Justice Department, Lui allegedly submitted a purchase order in January 2024 for 27 servers valued at approximately $7.6 million. The equipment was shipped from Los Angeles to Kuala Lumpur and was later allegedly transshipped to a buyer in China.
The indictment further alleges that Earthmade received more than $176 million between January and October 2024 from two Malaysia-based shipping companies.
Charges against Greg Lui
Lui has been charged with conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling and conspiracy to commit money laundering.
If convicted, he faces statutory maximum penalties of 20 years for the conspiracy charge, 10 years for the smuggling charge and 20 years for the money-laundering charge, according to the Justice Department.
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.
The Justice Department said the charges contained in the indictment are allegations. Lui is presumed innocent unless proven guilty beyond a reasonable doubt in court.
