US authorities have arrested a California businessman accused of smuggling more than $300 million worth of restricted computer servers to China.
The Justice Department identified him as Greg Lui, 38, also known as “Yiu Kong Lui,” of San Gabriel. Officials announced his arrest on Thursday, October 1, following a federal indictment returned on September 29.
Prosecutors allege that Lui used false documents and shipments through Malaysia and Singapore to evade US export controls.
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The servers contained “US-manufactured graphics processing units (GPUs) commonly used for Super Intelligence (SI)”, according to the announcement. The hardware supports artificial intelligence applications.
“Protecting America’s national security means keeping our advanced Super Intelligence technology from being used to strengthen our adversaries’ military capabilities,” said Bill Essayli.
Essayli serves as first assistant US attorney for the Central District of California.
Lui owns Earthmade Computer Inc., a technology company based in California’s City of Industry.
According to prosecutors, he and alleged co-conspirators used Earthmade to acquire restricted servers and send them to China during 2023–2024. The Justice Department’s timeline corrects the repeated 2023 date in the initial account.
Investigators say the group failed to obtain the required Commerce Department licences for the Chinese destinations.
Instead, they allegedly presented US manufacturers with documents identifying permitted buyers and destinations. Freight companies then transported the servers to Malaysia and Singapore before intermediaries redirected them to China.
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Prosecutors maintain that Lui knew the equipment’s actual end users were in China.
Earthmade allegedly received more than $176 million from two Malaysian shipping companies between January and October 2024.
The indictment describes a January 2024 email concerning a Malaysian company’s interest in purchasing 70 servers containing restricted GPUs.
Prosecutors say Lui later ordered 27 servers from a US manufacturer for approximately $7.614 million. The shipment travelled from Los Angeles to Kuala Lumpur.
In March 2024, an alleged co-conspirator emailed a Malaysian government official confirming that 27 servers had reached a China-based buyer.
These transactions form part of the government’s account of how the alleged operation concealed the equipment’s final destination.
Lui faces conspiracy charges involving the Export Control Reform Act and Export Administration Regulations, outbound smuggling, and conspiracy to commit money laundering.
The statutory maximum penalties total 50 years: 20 years for the export-control conspiracy, 20 for money laundering and 10 for smuggling.
Those figures represent maximum exposure if convicted on all counts, rather than a predetermined sentence.
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The case comes amid US efforts to restrict China’s access to advanced computing technology. Commerce officials expanded semiconductor controls in October 2023, citing military modernisation and national security concerns.
The FBI, Commerce Department export-enforcement officials and the Defense Criminal Investigative Service are investigating.
Reuters reported that it could not reach Lui for comment. Earthmade did not immediately respond to its request.
The charges remain allegations, and Lui is presumed innocent unless prosecutors prove guilt in court.
