BEIJING (dpa-AFX) - Three people have been charged for allegedly conspiring to divert high-performance computer servers assembled in the United States and integrating sophisticated U.S. artificial intelligence technology to China.
Yih-Shyan 'Wally' Liaw, a U.S. citizen, and Ting-Wei 'Willy' Sun, a citizen of Taiwan, were arrested Thursday and will be presented in the Northern District of California. Ruei-Tsang 'Steven' Chang, a citizen of Taiwan, remains a fugitive, the U.S. Department of Justice said.
'The indictment unsealed today details alleged efforts to evade U.S. export laws through false documents, staged dummy servers to mislead inspectors, and convoluted transshipment schemes, in order to obfuscate the true destination of restricted AI technology-China,' said John A. Eisenberg, Assistant Attorney General for National Security. 'These chips are the product of American ingenuity, and NSD will continue to enforce our export-control laws to protect that advantage.'
'The FBI's investigation revealed that Liaw, Chang, and Sun allegedly conspired to sell billions of dollars' worth of servers integrating sensitive, controlled graphic processing units to buyers in China, in violation of U.S. export control laws,' said Assistant Director Roman Rozhavsky of the FBI's Counterintelligence and Espionage Division.
'As alleged in the Indictment, the defendants participated in a systematic scheme to divert massive quantities of servers housing U.S. artificial intelligence technology to customers in China,' said U.S. Attorney Jay Clayton for the Southern District of New York.
Liaw is a co-founder, board member, and Senior Vice President of Business Development of a publicly traded U.S.-based manufacturer that designs and builds high-performance computer servers for artificial intelligence and cloud computing applications, including servers that integrate artificial intelligence graphics processing units (GPUs). Chang is a general manager in the U.S. Manufacturer's Taiwan office. Sun is a third-party broker and 'fixer' who has worked with Liaw, Chang, and others to divert U.S.-export controlled technology to China. Together, they conspired to systematically divert the U.S. Manufacturer's servers with certain GPUs to China without a license to do so from the U.S. Department of Commerce.
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