Computer servers purchased in the United States are at the center of a federal criminal case in California. Prosecutors allege the equipment eventually reached customers in China even though federal restrictions required permission for those exports.
The investigation has led to charges against Greg Lui, a California businessman who founded Earthmade Computer. The 38-year-old was taken into federal custody in connection with the case.
Authorities place the value of the equipment involved at more than $300 million. Prosecutors say Earthmade was used to obtain servers during 2023 and 2024 as part of the alleged operation.
The machines included advanced graphics processors used for artificial intelligence and other demanding computing work. Some contained processors manufactured by Nvidia, and U.S. rules limited their export to China without government approval.
Prosecutors say the actual customers were not accurately identified when some purchases were made. Documents instead pointed to destinations where the equipment could be sent without the same export permission.
Malaysia was one of those destinations, along with Singapore. Federal authorities allege those countries served as intermediate stops before equipment continued to buyers in China.
Emails are part of the evidence cited by the government. One communication early in 2024 concerned interest in dozens of servers from a business operating in Malaysia, and investigators say Lui knew restrictions applied to the technology.
Another purchase involved 27 machines carrying Nvidia H100 processors. Together they were valued at roughly $7.6 million, with Malaysia listed as the destination when they left the United States.
The government alleges that was not the end of their journey. Several weeks later, an email sent to a Malaysian official indicated that the same group of machines had reached a customer in China.
Money moving through Earthmade is another part of the government’s case. Court papers describe the company receiving more than $176 million from two overseas shipping businesses during much of 2024.
Investigators also examined U.S. bank accounts that prosecutors believe were connected with the transactions. Authorities allege those accounts handled funds associated with acquiring and moving the computer equipment.
Federal agents monitored Lui before taking him into custody at his workplace. Authorities also searched his San Gabriel residence and removed material during the operation.
The indictment accuses him of participating in three types of federal offenses. The allegations involve evading rules controlling exports, improperly moving restricted products overseas and laundering money.
Those accusations have not been proven in court. Prosecutors have asked that Lui be kept in custody during the case because they believe there is a risk he could flee.
Earthmade was established in 2021 and operates from the City of Industry. The company has worked with computer processors and exports as well as providing database colocation services.
Before starting Earthmade, Lui had experience in both technology and the restaurant industry. He previously worked for a technology company in Denver and was involved with an Arcadia restaurant that operated from 2012 until 2021.
The investigation includes work by the FBI, Commerce Department and Defense Criminal Investigative Service. Court information contained in the provided material did not identify an attorney representing Lui.
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