Posted on 10/02/2026 5:20:42 AM PDT by Red Badger
The Trump Justice Department has arrested a California technology-company owner accused of smuggling more than $300 million in restricted American computer servers to China.
Prosecutors say the operation used false paperwork and stops in other countries to get around U.S. export controls.
That is the central issue here: a shipment’s first destination is not necessarily its final customer.
The national-security division announced the arrest while emphasizing the strategic importance of the chips involved:
California Man Arrested for Smuggling More Than $300 Million in Export-Controlled Computer Servers to China
“SI is the defining technology of the era,” said Assistant Attorney General John A. Eisenberg. “The National Security Division will protect the American advantage in the…— National Security Division, U.S. Dept of Justice (@DOJNatSec) October 1, 2026
The Justice Department identifies the defendant as Greg Lui, 38, of San Gabriel, also known as Yiu Kong Lui; he owns Earthmade Computer Inc. in City of Industry.
A grand jury returned the indictment September 29. The three charges cover an alleged export-control conspiracy, outbound smuggling, and a money-laundering conspiracy.
First Assistant U.S. Attorney Bill Essayli described the case as an effort to keep advanced American technology from strengthening adversaries’ military capabilities. FBI counterintelligence official Roman Rozhavsky alleged that the sales reached the Chinese government.
Commerce export-enforcement investigators, Defense Criminal Investigative Service agents, and the FBI are investigating the case. Lui remains presumed innocent, and the indictment is an allegation the government must prove in court.
The maximum penalties listed are 20 years on each conspiracy count and 10 years for smuggling. They are statutory ceilings, not an announced sentence.
Essayli’s statement explains why prosecutors view the alleged transactions as a national-security case:
Greg Lui, 38, of San Gabriel, was arrested on federal charges alleging he smuggled more than $300 million in export-controlled computer servers containing American-made GPUs used for Super Intelligence (formerly-AI) to China.
According to the indictment, Lui and his… https://t.co/Esf24GtPzx— F.A. United States Attorney Bill Essayli (@USAttyEssayli) October 1, 2026
The Justice Department outlines an alleged 2023–2024 routing scheme through Malaysia and Singapore. Manufacturers allegedly received false information about the servers’ end users and destinations, while Lui knew the ultimate users were in China.
Earthmade allegedly received more than $176 million from two Malaysian shipping companies between January and October 2024. That payment figure is separate from the more-than-$300-million value prosecutors assign to the alleged smuggling scheme.
The announcement traces one shipment: a January 2024 order for 27 servers costing approximately $7.614 million, sent from Los Angeles to Kuala Lumpur. The packing list warned that the equipment could not go to China without a license.
A March email allegedly confirmed those 27 servers had been forwarded to a buyer in China. Prosecutors are pointing to that sequence as evidence of the real destination.
The numbers are large, but the paperwork matters just as much. A restriction accomplishes little if officials cannot establish who ultimately receives the equipment.
The local federal prosecutor’s office separately confirmed the arrest and linked its detailed account of the charges:
San Gabriel man arrested on federal charges alleging he smuggled to China more than $300 million in export-controlled computer servers https://t.co/c9SkXAyK5g— US Attorney L.A. (@USAO_LosAngeles) October 1, 2026
For the Trump administration, this case puts export enforcement where it belongs: tracing sensitive American technology all the way to its actual destination.
Now comes the courtroom test. The government has laid out a serious allegation; it still has to turn the transaction records into proof.
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PING!....................
The shit show just never ends.
The government will have a difficult time proving that he and his company knew the servers were destined for China............
GREAT!
Smuggler Greg Lui, San Gabriel, AKA Yiu Kong Lui nabbed;
he owns Earthmade Computer Inc. in City of Industry.
“The Justice Department identifies the defendant as Greg Lui, 38, of San Gabriel, also known as Yiu Kong Lui”
Just saying.
The PRC will steal or make whatever it thinks is necessary for its military.
Thanks to Walmart and Amazon and many other “American” companies it has the money necessary.
Unlike the USA, the PRC has no desire to smash to desires of its citizens to become engineers by importing hundreds of thousands of H-1Bs.
Mosquitos have small brains and the ability to locate human flesh.
The PRC can be expected to get its hands on chips made by a company worth several trillion dollars.
A company has to sell a lot of chips to get enough profit to justify such a stock valuation.
“Starting out in PC graphics, NVIDIA helped build the gaming market into the largest entertainment industry in the world today. Its invention of the GPU in 1999 made possible real-time programmable shading, which defines modern computer graphics, and later revolutionized parallel computing. More recently, GPU deep learning ignited modern AI — the next era of computing — with the GPU acting as the brain of computers, robots and self-driving cars that can perceive and understand the world.”
“Prior to founding NVIDIA, Huang worked at LSI Logic and Advanced Micro Devices. He holds a BSEE degree from Oregon State University and an MSEE degree from Stanford University.”
https://www.nvidia.com/en-eu/about-nvidia/governance/management-team/jensen-huang/
The PRC has more Chinese engineers than the US.
And do look at the last names of the USPTO patent examiners.
There are numerous allegations about NVIDIA smuggling illegal chips to China in part to inflate prices, but nothing will happen because AI is “too big to fail”.
Yup.
The Saintly “Model Minority” imported here in the ‘70s and ‘80s from HK and then mainland PRC turns out to be a gigantic 5th column.
Speaking of the patent office, China keeps a couple of researchers there to examine all tech-related patents as they’re filed. Anything that looks interesting is copied and sent home to China. Because they don’t have the same onerous regulatory and financial hoops to jump thru, they can get a head start on innovative goodies. Remember: they can’t innovate, so they have to copy and steal.
Get a rope!
WHAT KIND OF VOLUME OF SPACE IS THIS
.
Lui needs to sleep with Luca Brasi.
The Chinese Communist Party can’t even create AI they have to Steal that too ,LOL
The love of money.................
The only question this traitor should be asked is “Do you want a blindfold?”.
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