Tech CEO Arrested on Federal Charges for Allegedly Smuggling $300M in Nvidia AI Servers to China

Photo via Techicy

In October 2026, the owner of a Southern California technology firm was arrested on federal charges accusing him of smuggling more than $300 million in computer servers restricted by U.S. export controls to China, according to the U.S. Department of Justice.

The Arrest

Greg Lui, 38, who also goes by "Yiu Kong Lui" and lives in San Gabriel, California, was taken into custody under a three-count federal indictment handed down by a grand jury on September 29. Lui is the owner of Earthmade Computer Inc., a technology company based in the City of Industry. He made his initial court appearance and was arraigned on October 1 in federal court in downtown Los Angeles.

How the Alleged Scheme Worked

Prosecutors allege that from 2023 to 2024, Lui and his co-conspirators used Earthmade to purchase high-end computer servers loaded with U.S.-made graphics processors (GPUs) built for advanced computing work — including Nvidia A100 and H100 chips, according to reports. U.S. law bars the sale of these chips to China without a special license.

Rather than applying for licenses, Lui allegedly filed false paperwork with U.S. manufacturers claiming the equipment was bound for buyers in Malaysia or Singapore — countries where no such license is required. From there, prosecutors say, the servers were quietly re-routed to buyers in China. Authorities allege the scheme even involved staged dummy servers meant to mislead inspectors and convoluted transshipment routes designed to hide the true destination.

In one example cited in the case, Lui allegedly submitted a purchase order in January 2024 for 27 servers worth about $7.6 million, shipped from Los Angeles County to Kuala Lumpur, Malaysia. Two months later, a co-conspirator allegedly told a Malaysian government official the shipment had already been forwarded to a Chinese customer. Between January and October 2024, Earthmade allegedly received more than $176 million from two Malaysia-based shipping companies tied to the scheme.

The Charges

Lui faces one count of conspiracy to violate the Export Control Reform Act and the Export Administration Regulations, one count of outbound smuggling, and one count of conspiracy to commit money laundering. If convicted on all counts, he could face a statutory maximum of 20 years in federal prison on the conspiracy count, 20 years on the money laundering count, and 10 years on the smuggling count. The case is being investigated by the FBI's Counterintelligence and Espionage Division, the Commerce Department's Bureau of Industry and Security Office of Export Enforcement, and the Defense Criminal Investigative Service.

Why It Matters

Federal officials say the advanced chips at the center of this alleged chip smuggling operation could significantly boost the military capabilities of other nations — which is why U.S. export controls restrict them. First Assistant U.S. Attorney Bill Essayli said the defendant allegedly used false paperwork and shipments through third countries to smuggle more than $300 million in export-controlled computer servers to China. The FBI said Lui allegedly sold the Chinese government hundreds of millions of dollars' worth of American technology in violation of U.S. export control laws.

It is important to remember that an indictment is merely an allegation, and every defendant is presumed innocent until proven guilty in a court of law.

Ex-CIA Official With Top Secret Clearance Pleads Guilty to $194 Million Fraud Involving 298 Gold Bars

 

Photo via Wikimedia Commons

The $194 Million Scheme

David J. Rush of Ashburn, Virginia, held senior executive posts and a top-secret TS/SCI security clearance at a federal agency court filings call "Government Agency 1." On October 6, 2026, he pleaded guilty in federal court in Alexandria, Virginia, to one count of wire fraud for siphoning roughly $194 million in government money through two invented classified programs. Under his plea agreement, he owes at least $195.4 million in restitution. CIA Director John Ratcliffe said the CIA referred the case to the FBI after its own internal investigation turned up potential crimes.

The first fake program was a bogus Special Access Program. Between November 2025 and March 2026, a government contractor wired about $145 million to Rush's shell company, 0701 Holdings LLC, for "consulting" that never happened. The second program had a subcontractor buying gold bars — 298 of them, costing $46,361,721 including fees — delivered in Pelican cases straight to Rush's government office in Loudoun County.

298 Gold Bars and Four Florida Mansions

On May 19, FBI agents searched Rush's home and found all 298 gold bars — plus about $2.1 million in cash, €104,795 in euros, and more than 30 watches, including Rolexes. The "consulting" millions, meanwhile, had been converted into South Florida luxury real estate: two Palm Beach homes at $21.9 million and $27 million, a $13.65 million Palm Beach parcel, and a $40 million parcel in Hobe Sound. He also billed the government $1.8 million for private charter flights. Total losses: $193.6 million.

The forfeiture list reads like a heist movie inventory: the gold, the cash, 35 watches, two 2026 BMW Alpina XB7s, $38.65 million seized from the shell company's bank account, and the Florida properties.

A Resume Built on Lies

Rush didn't just invent programs — he invented himself. Prosecutors say he landed his senior position partly by lying about his background: claiming to be a combat veteran and military pilot with degrees he never earned. He left the Navy reserves in 2015, yet claimed 392 hours of military leave starting in 2021. He also admitted handing a foreign government official information about a U.S. clandestine human source in late 2025 — a stunning breach on top of the fraud.

What Happens Next

Rush faces up to 20 years in federal prison, with sentencing set for January 28, 2027. Attorney General Todd Blanche vowed to keep rooting out waste, fraud, and abuse, the Director of National Intelligence has asked the Intelligence Community Inspector General to investigate, and the DOJ says its probe is continuing. The lesson for this October 2026 scam alert: the biggest cons don't always come from a phishing email — sometimes they come with a security clearance.

Huntsville Trafficking Suspect Arrested Again as New Victim Is Added to Meteor Buffet Case

Mugshot via Madison County Sheriff's Office

The Initial Charges (August 27, 2026)

On August 27, 2026, Huntsville police, the FBI, and several other agencies raided six locations — including the Meteor Buffet on Highway 72 East — in an operation dubbed Operation Meteor Strike. Three people were arrested and booked into the Madison County Jail: 51-year-old Caiyun Chen on first-degree human trafficking, 64-year-old restaurant owner Chao Bin Zhang on conspiracy to commit a crime, and 44-year-old Baudilio Ordonez-Gomez on conspiracy to commit a crime.

Investigators say the case began when a woman came forward saying she had been brought to Huntsville, Alabama and forced to work for roughly two years to pay off a debt, under threat of deportation.

How They Bonded Out

All three eventually got out. Zhang bonded out the Friday morning after his arrest. Chen, who initially had no bond set, was later released on a $100,000 bond. Ordonez-Gomez was held on a $30,000 bond. Zhang later waived his preliminary hearing on September 16, 2026, sending his case toward a grand jury.

The New Charges (October 2, 2026)

On Friday night, October 2, Huntsville police arrested Chen again — this time on a new first-degree human trafficking charge tied to an additional victim in the same case. No bond was set this time, and she remains in jail, according to a WAFF report published October 3, 2026.

All three defendants are presumed innocent. The charges are allegations, and none of the cases has gone to trial.

The Meteor Restaurant is at the Center of It All

Meteor Buffet is a Chinese buffet restaurant at 751 Highway 72 East in Huntsville. Like most buffets, it employed kitchen workers behind the scenes and servers and cashiers up front — and the labor-trafficking investigation has centered on how some of those workers were treated. Investigators say the victim in the case was forced to keep working to pay off a debt, a pattern known as debt bondage.

Meteor Buffet, Huntsville, Alabama

The 2019 Crab-Legs Brawl

This is not the first time Meteor Buffet made headlines. In 2019, the restaurant went viral after a brawl broke out over crab legs: diners John Chapman and Chequita Jenkins were arrested after allegedly fighting with serving tongs like fencing swords while waiting in line. Huntsville police officer Gerald Johnson, who happened to be eating there, told WHNT that plates were shattering and “there’s a woman who’s beating a man.” Jenkins was charged with third-degree assault and Chapman with disorderly conduct.

Why This Matters for Scam Awareness

Labor trafficking cases often begin the way many scams do: false promises. Victims are lured with offers of steady work and decent pay, then find wages withheld, movements restricted, or documents taken. If a job offer demands your passport, charges fees just to start work, or refuses to put terms in writing — walk away. It is a textbook scam awareness lesson. This remains a developing crime news story from October 2026, and investigators say more charges are possible. Anyone with information about labor trafficking can contact the National Human Trafficking Hotline at 1-888-373-7888.

Illinois Woman Loses $318K in Gold-Bar Scam, Then Helps Police Sting the Courier

Photo via Capitol News Illinois

In a devastating example of an elderly scam, a 78-year-old woman from Marion, Illinois, was allegedly defrauded of hundreds of thousands of dollars in an elaborate gold-bar scam — and then helped investigators arrest the man accused of picking up the loot.

The Popup That Started It All

In April 2026, the woman — identified only as D.B. in federal court records — reportedly saw a pop-up on her computer warning that the machine had been compromised. She searched online for Microsoft support, called the first number shown in the results, and reached a man calling himself "Mike Williams." Williams allegedly claimed to be a supervisor on Microsoft's fraud-prevention team, and the woman gave him remote access to her computer.

An "Edward Jones" Impersonator Tightens the Grip

Williams then handed her off to another man calling himself "Kevin Jones," who claimed to work in Edward Jones' fraud-prevention department. Jones allegedly told her that her Edward Jones investment accounts had been compromised. The impersonation scheme quickly turned controlling: according to court records, Jones had her sign a purported nondisclosure agreement, send him "good morning" and "good night" texts every day, and carry a "tracker phone" that he monitored.

Nearly $1.8 Million Moved, Hundreds of Thousands in Gold

Following Jones's directions, she moved nearly $1.8 million from her Edward Jones accounts into a money market account and spent more than $823,000 on gold bars — purchases she believed were needed so a supposed federal agent could hold the gold for safekeeping. On June 8, she handed over gold worth $318,459 — six 1-ounce bars and twenty 100-gram bars — in the Marion Walmart parking lot to a man she believed was a U.S. Treasury agent, after exchanging the code word "black bug." Jones then told her to convert more than half a million dollars more into gold — and she did.

Doubts, Then a Call to Marion Police

She grew suspicious when the federal seal on documents Jones sent her did not look genuine, and she contacted the Marion Police Department.

The Sting: Sandbags and "Poker Queen"

Working with investigators, police helped arrange a sting. On July 7, Jones guided her to package two kilograms of gold bars worth about $272,000 and meet the supposed "agent" at the Cornerstone Church in Marion, near Sam's Club, using the code word "poker queen." The box was actually filled with sandbags. Investigators arrested Ruoyu Lian, 30, of Flushing, New York, moments after he took the box.

Guilty Plea and an Expected Prison Sentence

Lian pleaded guilty in federal court in Benton on September 24 to felony wire fraud and conspiracy to commit the same offense — each charge carrying up to 20 years in prison and a $250,000 fine. As of October 2026, he remains in the Franklin County Jail pending a January 14 sentencing hearing. Under the plea deal, his sentence is expected to fall within the federal guideline range of 40 to 52 months, and he will owe more than $318,000 in restitution for the gold that was never recovered. As a Chinese citizen and legal permanent resident, he is expected to be deported after serving his sentence. His defense attorney said Lian acted only as the scheme's "courier" — a New York sushi chef allegedly paid about two weeks' restaurant wages to fly to Illinois — and called him "expendable" to the ringleaders, who remain at large.

Federal Warning on Courier Scams

The FBI warned in September 2025 about a rise in so-called "gold bar and bulk cash courier scams," reporting more than 1,700 such scams between 2023 and May 2025 with reported losses exceeding $186 million.

Scam-Awareness Takeaways

Take this case as a scam alert. Red flags here included fake computer popups, a stranger gaining remote access to a computer, demands for secrecy and a purported NDA, and instructions to convert savings into gold for supposed "agents." No legitimate company or government agency operates this way — real tech support will never ask for remote access out of the blue, and real federal agents will never ask you to buy gold bars.