US authorities have arrested a California man accused of smuggling more than $300m worth of export-controlled computer servers to China using false paperwork and shipments routed through third countries.
Key facts
- Greg Lui, 38, of California, was arrested over an alleged smuggling scheme.
- Authorities say more than $300m worth of computer servers were involved.
- The servers were export-controlled gear allegedly moved from the US to China.
- Prosecutors allege Lui used false paperwork and shipments through third countries.
- The Department of Justice announced the arrest on Thursday.
US authorities have arrested a man accused of smuggling more than $300m worth of computer servers to China, the Department of Justice announced, according to the Guardian.
The suspect, Greg Lui, 38, of California, is also known as “Yiu Kong Lui,” the justice department said in a statement published on Thursday.
Prosecutors allege that Lui used false paperwork and shipments routed through third countries to smuggle the export-controlled computer servers to China.
The computer servers at the center of the case were export-controlled gear, meaning their transfer abroad is restricted under US rules governing sensitive technology.
According to the Department of Justice statement reported by the Guardian, the alleged scheme involved moving the equipment from the United States to third countries before it reached China.
The arrest was announced by the Department of Justice, which laid out the allegations in its Thursday statement. Further details of the case were not provided in the available reporting.
Why it matters
The case highlights US efforts to enforce export controls on advanced computing technology amid ongoing tensions with China over access to sensitive hardware. Allegations of routing restricted servers through third countries underscore the challenges authorities face in policing the global technology supply chain.