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.

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.

Bessemer Police Warn Residents After Fake FBI Callers Scam Two People Out of Thousands

Photo by Ajay Suresh via Wikimedia Commons (CC BY 2.0); "Scam Reported" text added

Two Bessemer, Alabama residents lost thousands of dollars after scammers posing as FBI agents convinced them to pull cash from their bank accounts, according to the Bessemer Police Department.

How the fake FBI phone scam worked

The callers already had the victims' bank account numbers, which made the calls sound legitimate. They told victims their accounts were locked and asked them to withdraw money in person to help with an investigation. After the victims withdrew the cash, the scammers instructed them to leave with a box — either a mailing box or, in one case, a cereal box with the cereal dumped out — put the money inside, and tape it shut. Police say the victims never got their money back in this phone scam.

Why the impersonation scam is so believable

Detective Jonathan Brady of the Bessemer Police Department said the scheme works because the callers come armed with personal information. "If an FBI agent calls you, they're not going to ask you for $25,000, so you definitely don't want to hand over any money," Brady said. Carl Bates, president of the Better Business Bureau, called the fake FBI scheme one of the most common scams the Better Business Bureau encounters, and warned that getting hold of someone's personal information "is not hard these days." Residents of Bessemer, Alabama should treat any such call as a scam alert.

How to protect yourself from fraud

• The real FBI will never call you and demand cash — treat any such demand as fraud.
• Never share your driver's license or bank account numbers with an unsolicited caller.
• Shred documents containing personal information.
• If you receive one of these calls, report it to the police right away and save any phone numbers, receipts, and vehicle descriptions. Heed every police warning about impersonation scam tactics.

Powerball Winner James Farthing Arrested a Fifth Time Since $167 Million Jackpot, Found Asleep in Walmart Parking Lot

Photo via WVLT

James Farthing, 51, of Kentucky, won a $167.3 million Powerball jackpot in April 2025 — the largest Powerball jackpot ever won in Kentucky, according to People. Since claiming that life-changing prize, he has now been arrested five times. His latest arrest came on a public intoxication charge after deputies found him asleep in a running car in a Walmart parking lot.

The Fifth Arrest: Asleep in a Walmart Parking Lot

Farthing was taken into custody around 4:04 a.m. on Sunday, September 20, 2026, in Georgetown, Kentucky, and charged with alcohol intoxication in a public place, per WHAS11 and LEX 18 News, citing an arrest citation.

According to People (via Yahoo News, published September 21, 2026), the incident began shortly before 3 a.m., when a passerby reported a white Ford Mustang with a temporary tag stopped in the intersection of Cherry Blossom Way and Connector Road. The vehicle later moved to a nearby Walmart parking lot and stopped near the EV charging stations.

Deputies found the Mustang still running with Farthing alone inside, asleep in the passenger seat. They had to knock on the window repeatedly to wake him. Deputies alleged he had bloodshot and watery eyes, slurred speech, difficulty maintaining balance, and that they smelled alcohol and marijuana. He was described as "manifestly under the influence of alcohol" and believed to pose a danger to himself and others because he could operate the vehicle while impaired.

Farthing claimed a woman drove him to the lot and left him there — but surveillance footage reportedly showed the Mustang arriving with no one getting out before police arrived. He was taken to the Scott County Detention Center.

Four Prior Arrests Since the Jackpot Win

All four of Farthing's earlier arrests came after he claimed the lottery prize:

1. Days after claiming the prize: arrested in Pinellas County, Florida, after an altercation at a resort — charged with battery on a law enforcement officer and resisting arrest after police said he kicked an officer trying to break up an altercation involving Farthing and another person.
2. February 2026 (Kentucky): arrested and charged with intimidation of a participant in the legal process.
3. March 2026: arrested on second-degree burglary and marijuana possession; police alleged he entered a Lexington home and took about $12,000 in cash.
4. July 2026: arrested in Scott County after an alleged domestic violence incident — charged with first-degree strangulation and fourth-degree assault causing minor injury. The alleged victim said they had argued after returning from a boating trip and accused him of putting both hands around her neck, restricting her breathing. He pleaded not guilty at a July 28 court appearance; bond was set at $15,000 and he was ordered to avoid contact with the alleged victim and wear a monitoring device, per LEX 18 News.

How Scammers Exploit Lottery Winner Headlines

Stories like Farthing's go massively viral — and scammers know it. Every time a huge lottery jackpot makes national news, fraud artists blast out fake "you've won the lottery" emails, texts, and social media messages designed to look like the real thing. They borrow details from real headlines — real jackpot amounts, real winner names, real lottery brands like Powerball — to make their phishing messages sound legitimate.

The setup is almost always an advance-fee scam: you're told you've won a prize, but you must pay "taxes," "processing fees," or "delivery charges" before you can collect it. The prize doesn't exist. Once you pay, the scammer disappears — or keeps inventing new fees.

Red Flags of a Lottery Scam

• You can't win a lottery you never entered. If you didn't buy a ticket, any "win" notification is a scam.
• You're asked to pay money upfront to claim a prize — real lotteries deduct taxes from winnings; they never demand gift cards, wire transfers, or crypto payments first.
• Pressure and urgency — "claim within 24 hours or lose it all" is designed to stop you from thinking.
• Contact from unofficial channels — real lotteries don't notify big winners by random email, text, or Facebook message.
• Requests for personal or banking information to "verify" your win.

How to Protect Yourself

• Never respond to, click links in, or call back numbers from unexpected "lottery win" messages.
• Never pay fees to collect a supposed prize.
• Verify claims only through the official state lottery website or by calling the lottery directly.
• Report lottery scams to the Federal Trade Commission at ReportFraud.ftc.gov and to your state attorney general.
• Warn older relatives — they are disproportionately targeted by these scams.

Source: People via Yahoo News, "167 Million Lottery Jackpot Winner Arrested for the Fifth Time Since His Win," by Angelique Brenes, published September 21, 2026. All charges described are allegations; Farthing pleaded not guilty to the July 2026 charges.