{"id":124874,"date":"2026-03-20T00:31:33","date_gmt":"2026-03-20T04:31:33","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874"},"modified":"2026-03-20T00:31:33","modified_gmt":"2026-03-20T04:31:33","slug":"feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874","title":{"rendered":"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers"},"content":{"rendered":"
\n

Federal prosecutors charged three men linked to Super Micro Computer Inc. in a sweeping scheme to smuggle billions of dollars in U.S. artificial intelligence technology to China<\/a> using fake documents, shell companies and staged equipment, officials said.<\/p>\n

The defendants allegedly diverted $2.5 billion worth of AI servers \u2014 including $510 million in just a few weeks in 2025 \u2014 to China.<\/p>\n

Yih-Shyan Liaw, 71, a U.S. citizen, and Ting-Wei Sun, 44, of Taiwan, were arrested Thursday, while a third individual, Ruei-Tsang Chang, 53, also of Taiwan, remains at large.<\/p>\n

“The indictment unsealed today details alleged efforts to evade U.S. export laws through false documents, staged dummy servers<\/a> to mislead inspectors, and convoluted transshipment schemes, in order to obfuscate the true destination of restricted AI technology \u2014 China,” Assistant Attorney General for National Security John A. Eisenberg said in a statement. “These chips are the product of American ingenuity, and NSD will continue to enforce our export-control laws to protect that advantage.”<\/p>\n

TOP AI FIRM ALLEGES CHINESE LABS USED 24K FAKE ACCOUNTS TO SIPHON US TECH<\/strong><\/a><\/p>\n

Supermicro said Thursday it was informed by the U.S. Attorney\u2019s Office<\/a> for the Southern District of New York that three individuals associated with the company had been indicted in connection with an alleged export-control scheme. The company said it is not named as a defendant.<\/p>\n

Supermicro said Liaw was its senior vice president of business development and a board member, Chang was a sales manager in Taiwan, and Sun was a contractor.<\/p>\n

Supermicro said it placed the two employees on administrative leave and terminated its relationship with the contractor.<\/p>\n

FCC, STATE AGS TO JOIN FORCES IN CRACKDOWN ON CHINA-LINKED COMMUNICATIONS TECHNOLOGY<\/strong><\/a><\/p>\n

“The conduct alleged in the indictment violates the company\u2019s policies and efforts to comply with export control laws<\/a>,” Supermicro said.<\/p>\n

According to the indictment, Liaw and Chang \u2014 who worked with brokers and customers in China \u2014 allegedly directed executives of a Southeast Asia-based company to place purchase orders with a U.S. manufacturer for servers equipped with certain GPUs, purportedly for that company.<\/p>\n

The servers were often assembled in the U.S. and shipped to Taiwan before<\/a> being delivered to the company, which then repackaged them in unmarked boxes to conceal their contents before shipping them to China.<\/p>\n

CHINESE NATIONALS ARRESTED AT TOP SCHOOL SHOWS HOW CCP VIEWS US UNIVERSITIES AS ‘WEAK LINK,’ EXPERTS WARN<\/strong><\/a><\/p>\n

The defendants and executives at the company allegedly prepared false documents and records and transmitted false communications to show that the company was the end user of the servers.<\/p>\n

U.S. Attorney Jay Clayton for the Southern District of New York accused the defendants of participating in a “systematic scheme” to divert servers with U.S. artificial intelligence technology to customers in China.<\/p>\n

“They did so through a tangled web of lies, obfuscation, and concealment\u2014all to drive sales and generate revenues in violation of U.S. law,” he said. “Diversion schemes like those disrupted today generate billions of dollars in ill-gotten gains and pose a direct threat to U.S. national security.”<\/p>\n

DEMOCRATS WARN TRUMP GREEN-LIGHTING NVIDIA AI CHIP SALES COULD BOOST CHINA\u2019S MILITARY EDGE<\/strong><\/a><\/p>\n

Roman Rozhavsky, assistant director of the FBI\u2019s Counterintelligence and Espionage Division<\/a>, added that “controlling the export of sensitive U.S. artificial intelligence technology is essential to safeguarding our national security and defending the homeland.”<\/p>\n

Prosecutors said the defendants took “extensive measures” to conceal the scheme.<\/p>\n

According to the indictment, the defendants staged thousands of “dummy” servers \u2014 nonworking physical replicas of the U.S. manufacturer\u2019s servers \u2014 to deceive its compliance team.<\/p>\n

Officials said surveillance video captured the defendants preparing the dummy servers in a warehouse. Ahead of an inspection by the U.S. Department of Commerce, they allegedly used a hair dryer to remove and reapply labels and serial number stickers to server boxes and the dummy servers.<\/p>\n

They then repackaged the dummy servers in the U.S. manufacturer\u2019s boxes<\/a>, according to the indictment.<\/p>\n

The defendants were charged with conspiracy to violate the Export Control Reform Act, which carries a maximum sentence of 20 years, as well as conspiracy to smuggle goods and conspiracy to defraud the United States, each carrying up to five years.<\/p>\n<\/div>\n

Source – https:\/\/www.foxnews.com\/us\/feds-charge-3-2-5b-scheme-smuggle-us-ai-tech-china-using-dummy-servers <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Federal prosecutors charged three men linked to Super Micro Computer Inc. in a sweeping scheme to smuggle billions of dollars in U.S. artificial intelligence technology […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[16563],"tags":[],"stock_ticker":[],"class_list":["post-124874","post","type-post","status-publish","format-standard","hentry","category-market-news","entry"],"acf":[],"yoast_head":"\nFeds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers - Wall Street PR<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers - Wall Street PR\" \/>\n<meta property=\"og:description\" content=\"Federal prosecutors charged three men linked to Super Micro Computer Inc. in a sweeping scheme to smuggle billions of dollars in U.S. artificial intelligence technology […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\" \/>\n<meta property=\"og:site_name\" content=\"Wall Street PR\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WallStreetPR\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-20T04:31:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2021\/06\/businessman-showing-business-evolution1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"715\" \/>\n\t<meta property=\"og:image:height\" content=\"423\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874#article\",\"isPartOf\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/person\/6e00efa2abc413bdc0bca51a90c54d36\"},\"headline\":\"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers\",\"datePublished\":\"2026-03-20T04:31:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\"},\"wordCount\":717,\"publisher\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#organization\"},\"articleSection\":[\"Market News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\",\"url\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\",\"name\":\"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers - Wall Street PR\",\"isPartOf\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#website\"},\"datePublished\":\"2026-03-20T04:31:33+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cablemanpro.com\/wallstreetpr\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#website\",\"url\":\"https:\/\/cablemanpro.com\/wallstreetpr\/\",\"name\":\"Wall Street PR\",\"description\":\"Latest News From WallStreet\",\"publisher\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/cablemanpro.com\/wallstreetpr\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#organization\",\"name\":\"Wall Street PR\",\"url\":\"https:\/\/cablemanpro.com\/wallstreetpr\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2019\/10\/brand-logo.png\",\"contentUrl\":\"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2019\/10\/brand-logo.png\",\"width\":537,\"height\":70,\"caption\":\"Wall Street PR\"},\"image\":{\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/WallStreetPR\/\",\"https:\/\/x.com\/WallstreetPRs\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/person\/6e00efa2abc413bdc0bca51a90c54d36\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2022\/09\/360_F_336393115_5gCUfwn76x3MJaCJMYDKLoRebkC8QyrL-300x300.jpg\",\"contentUrl\":\"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2022\/09\/360_F_336393115_5gCUfwn76x3MJaCJMYDKLoRebkC8QyrL-300x300.jpg\",\"caption\":\"admin\"},\"url\":\"https:\/\/cablemanpro.com\/wallstreetpr\/author\/admin\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers - Wall Street PR","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874","og_locale":"en_US","og_type":"article","og_title":"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers - Wall Street PR","og_description":"Federal prosecutors charged three men linked to Super Micro Computer Inc. in a sweeping scheme to smuggle billions of dollars in U.S. artificial intelligence technology […]","og_url":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874","og_site_name":"Wall Street PR","article_publisher":"https:\/\/www.facebook.com\/WallStreetPR\/","article_published_time":"2026-03-20T04:31:33+00:00","og_image":[{"width":715,"height":423,"url":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2021\/06\/businessman-showing-business-evolution1.jpg","type":"image\/jpeg"}],"author":"admin","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874#article","isPartOf":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874"},"author":{"name":"admin","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/person\/6e00efa2abc413bdc0bca51a90c54d36"},"headline":"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers","datePublished":"2026-03-20T04:31:33+00:00","mainEntityOfPage":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874"},"wordCount":717,"publisher":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#organization"},"articleSection":["Market News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874","url":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874","name":"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers - Wall Street PR","isPartOf":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#website"},"datePublished":"2026-03-20T04:31:33+00:00","breadcrumb":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/feds-charge-3-in-2-5b-scheme-to-smuggle-us-ai-tech-to-china-using-dummy-servers-124874#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cablemanpro.com\/wallstreetpr\/"},{"@type":"ListItem","position":2,"name":"Feds charge 3 in $2.5b scheme to smuggle us AI tech to China using dummy servers"}]},{"@type":"WebSite","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#website","url":"https:\/\/cablemanpro.com\/wallstreetpr\/","name":"Wall Street PR","description":"Latest News From WallStreet","publisher":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/cablemanpro.com\/wallstreetpr\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#organization","name":"Wall Street PR","url":"https:\/\/cablemanpro.com\/wallstreetpr\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/logo\/image\/","url":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2019\/10\/brand-logo.png","contentUrl":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2019\/10\/brand-logo.png","width":537,"height":70,"caption":"Wall Street PR"},"image":{"@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/WallStreetPR\/","https:\/\/x.com\/WallstreetPRs"]},{"@type":"Person","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/person\/6e00efa2abc413bdc0bca51a90c54d36","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cablemanpro.com\/wallstreetpr\/#\/schema\/person\/image\/","url":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2022\/09\/360_F_336393115_5gCUfwn76x3MJaCJMYDKLoRebkC8QyrL-300x300.jpg","contentUrl":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-content\/uploads\/2022\/09\/360_F_336393115_5gCUfwn76x3MJaCJMYDKLoRebkC8QyrL-300x300.jpg","caption":"admin"},"url":"https:\/\/cablemanpro.com\/wallstreetpr\/author\/admin"}]}},"_links":{"self":[{"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/posts\/124874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/comments?post=124874"}],"version-history":[{"count":0,"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/posts\/124874\/revisions"}],"wp:attachment":[{"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/media?parent=124874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/categories?post=124874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/tags?post=124874"},{"taxonomy":"stock_ticker","embeddable":true,"href":"https:\/\/cablemanpro.com\/wallstreetpr\/wp-json\/wp\/v2\/stock_ticker?post=124874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}