Washington, October 2, 2026 (Yes Punjab News)
A California technology company owner has been arrested and charged with allegedly smuggling more than $300 million worth of export-controlled high-end computer servers containing US-made graphics processing units (GPUs) to China, the US Justice Department said.
Greg Lui, 38, also known as Yiu Kong Lui, of San Gabriel, California, was arrested on a three-count federal indictment alleging that the servers were routed through Malaysia and Singapore to evade US export controls. The indictment was returned by a federal grand jury on September 29 and unsealed following his arrest.
Lui is charged with conspiracy to violate the Export Control Reform Act and Export Administration Regulations, outbound smuggling and conspiracy to commit money laundering. He was scheduled to make his initial appearance and be arraigned in federal court in Los Angeles.
According to prosecutors, Lui owns Earthmade Computer Inc., a technology company based in City of Industry, California. Between 2023 and 2024, he and alleged co-conspirators used the company to purchase export-controlled equipment and send it to China without the licences required by the US Department of Commerce.
Instead, the servers were allegedly shipped first to countries including Malaysia and Singapore, where they were then re-exported to China. Prosecutors said Lui knew that the actual end users were in China and that false documentation was provided to US manufacturers to indicate permissible destinations and end users.
The servers contained high-end GPUs used for advanced computing and artificial intelligence applications. US authorities restrict the export of certain advanced GPUs to China because of their potential contribution to the military capabilities of other countries.
From January to October 2024, Earthmade received more than $176 million from two Malaysia-based shipping companies as part of the alleged scheme, prosecutors said.
The indictment details a January 2024 transaction in which Lui allegedly ordered 27 servers worth approximately $7.6 million from a US manufacturer. The servers were shipped from Los Angeles to Kuala Lumpur, with documentation identifying them as containing export-controlled GPUs. In March, an alleged co-conspirator told a Malaysian government official that the 27 servers had been transshipped to a China-based buyer, according to prosecutors.
US authorities also alleged that the scheme involved false paperwork, staged dummy servers and complex transshipment arrangements intended to conceal the final destination of the restricted technology.
If convicted, Lui faces statutory maximum sentences of 20 years in prison each on the export-control conspiracy and money-laundering conspiracy charges, and up to 10 years on the smuggling charge.
The Justice Department stressed that the indictment contains allegations and that Lui is presumed innocent unless proven guilty beyond a reasonable doubt.
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