California Business Owner Indicted for Allegedly Smuggling $300 Million in Advanced Computer Servers to China

A California technology company owner was arrested following a 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) to China.

Greg Lui, 38, also known as "Yiu Kong Lui," of San Gabriel, California, faces a three-count indictment returned on Sept. 29. He is charged with conspiracy to violate the Export Control Reform Act and the Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering. Lui owns Earthmade Computer Inc., a closely held technology corporation based in the City of Industry.

According to federal prosecutors, Lui and his co-conspirators operated a scheme between 2023 and 2024 to acquire and export advanced servers used for Super Intelligence (SI) computing applications without the required licenses from the U.S. Department of Commerce. U.S. export control regulations restrict sending such high-end GPUs to China due to national security concerns and their potential contribution to foreign military capabilities.

The indictment alleges that the defendant submitted false documentation to U.S. manufacturers, claiming the equipment would be delivered to approved end users in destinations that did not require licenses. The servers were initially sent via freight forwarding companies to intermediary locations, including Malaysia and Singapore, before being re-exported to buyers in China. Prosecutors stated that between January 2024 and October 2024, Earthmade received over $176 million from two Malaysian shipment companies involved in the transactions.

In one instance detailed by investigators, Lui allegedly ordered 27 servers valued at approximately $7.61 million from a U.S. manufacturer in January 2024 after communicating with a Malaysian transshipment entity. The servers were shipped from Los Angeles to Kuala Lumpur and were subsequently transshipped to a buyer based in China, according to records referenced in the indictment.

If convicted on all counts, Lui faces statutory maximum penalties of up to 20 years in prison for export conspiracy, 20 years for money laundering conspiracy, and 10 years for smuggling.

The case is being investigated by the FBI, the Department of Defense Defense Criminal Investigative Service, and the U.S. Department of Commerce's Bureau of Industry and Security Office of Export Enforcement. The U.S. Attorney’s Office for the Central District of California and the National Security Division are handling the prosecution. Federal authorities emphasized that an indictment contains only allegations and that the defendant is presumed innocent unless proven guilty in court.

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