Federal agents on Wednesday arrested a California tech CEO who’s accused of smuggling more than $300 million in restricted AI chips into China.
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who → arrest → China
Greg Lui, 38, aka “Yiu Kong Lui,” of San Gabriel, faces a barrage of federal charges for allegedly selling Beijing a mountain of American-made AI graphics processers in violation of US laws, potentially threatening national security.
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Lui → face → security
FBI and Department of Commerce agents arrested the high-flying tech boss in a stealth raid at the City of Industry headquarters of Earthmade Computers, a company Lui founded and runs, and which he allegedly used to conduct the profitable yet illegal scheme.
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he → arrest → scheme
Agents tracked Lui as he drove a Tesla Cybertruck with a white wrap from his posh San Gabriel home to the Earthmade’s shiny offcies in a tidy industrial park, handcuffing him at gunpoint soon after he arrived at work.
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he → track → work
Lui didn’t speak as he was searched an placed in a vehicle to be taken in for processing.
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he → speak → processing
Federal prosecutors say Lui and his co-conspirators used Earthmade to buy and send sensitive AI tech into China from 2023 to 2024, without the required licenses issued by DOC that are meant to promote US foreign policy and protect national security.
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that → say → security
Instead, they shipped these items to countries such as Malaysia and Singapore, where no licenses are required, and then illegally re-exported them to China.
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licenses → ship → China
The items in question were high-end computer servers, containing processers made by Nvidia Corp, a Santa Clara tech company specializing in AI.
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items → contain → AI
According to federal regulations, such tech could make significant contributions to the Chinese military.
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tech → accord → military
As part of the alleged scheme, prosecutors say, Lui and his conspirators used fake documents to show the potentially dangerous AI tech would be going to destinations that did not require an export license in orders they placed with suppliers such as Nvidia.
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they → allege → Nvidia
After making these orders, Lui hired freight forwarding companies to ship the processors to Malaysia and Singapore.
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Lui → make → Malaysia
Once the servers arrived in these locations, Lui worked with his conspirators to reship the items to China.
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Lui → arrive → China
From January 2024 to October 2024, Earthmade received more than $176 million from two Malaysia-based shipment companies as part of the scheme, according to court papers.
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Earthmade → receive → papers
Prosecutors say Lui executed the scam knowing what he did was illegal, and they have the evidence to prove it.
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they → say → it
For example, prosecutors say, Lui emailed a conspirator in January 2024 saying a Malaysian transshipment company wanted to buy 70 computer servers with the controlled AI tech.
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company → say → tech
In the email, he noted the laws against the sale of such tech, according to court papers.
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he → note → papers
Later that month Lui purchased 27 of the servers for roughly $7.6 million and sent the servers from LA to Kuala Lumpur, Malaysia.
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Lui → purchase → Lumpur
Two months later, one of Lui’s conspirators told a Malaysian official in an email that the servers had, in fact, been transshipped to China.
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servers → tell → China
Prosecutors say Lui used a LA-based JP Morgan Chase account and Bank of America account to send and receive money to orchestrate the scheme.
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Lui → say → scheme
Lui is charged with one count of conspiracy to violate the Export Control Reform Act, one count of smuggling and one count of conspiracy to commit money laundering.
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Lui → charge → laundering
If convicted he faces up to 50 years in prison.
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he → convict → prison
The US DOC, the Defense Criminal Investigative Service and the FBI are investigating the case.
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DOC → investigate → case
According to his LinkedIn page, Lui has an eight-year career in tech that began with a stint at Amplitude Tech Hosting Service, a Denver-based firm specializing in database colocation.
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that → accord → colocation
In 2021 he founded Earthmade Computer, which also handles database colocation, in addition to computer processor procurement and export, according to LinkedIn.
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which → found → LinkedIn
That’s the company Lui used to commit his alleged crimes, investigators say, turning an handsome profit that enabled him to own a nine-bedroom mansion in San Gabriel that’s worth nearly $2 million.
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that → ’ → Gabriel
Before his tech run, Lui was a restauranter who specialized in ultra-spicy Sichuan Chinese food.
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who → specialize → food
In 2012 he co
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he → co → 2012
-founded of Duo-Pot in Arcadia, a Chinese hot pot and dry pot joint that sold spicy frog dishes before it closed in 2021, according to LinkedIn.
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it → - → LinkedIn
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