A California man has been arrested on federal charges alleging he smuggled more than $300 million of export-controlled computer servers to China. The Justice Department announced the case on October 1.

Greg Lui, 38, of San Gabriel, owns Earthmade Computer Inc. Prosecutors say that between 2023 and 2024, he bought servers containing Nvidia A100 and H100 GPUs from US makers using false end-user documents.

The servers were shipped to Malaysia and Singapore and then re-exported to a Chinese industrial company in Hangzhou, according to the indictment. One traced shipment was a $7.6 million order for 27 servers sent from Los Angeles to Kuala Lumpur in January 2024.

Lui faces three counts: conspiracy to violate the Export Control Reform Act, outbound smuggling, and conspiracy to commit money laundering. The charges carry a combined maximum of up to 50 years in prison.

Nvidia is not accused of any wrongdoing. Lui was expected to be arraigned in Los Angeles on October 2.