AI Tech Heist: Trio Busted for China Scheme

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SAN FRANCISCO – Federal agents moved in today, slapping charges on two men and hunting a third in a scheme to illegally ship cutting-edge American AI technology to China. Yih-Shyan Liaw, a U.S. citizen, and Ting-Wei Sun, a Taiwanese national, were cuffed and are expected in court in the Northern District of California. Their alleged accomplice, Ruei-Tsang Chang – also a citizen of Taiwan – is currently a fugitive.

The feds say the trio conspired to divert high-performance computer servers, built right here in the U.S. and packed with advanced artificial intelligence, directly to China. This wasn’t about shipping phone parts; we’re talking about serious computing power, the kind that fuels next-generation tech. The move allegedly flagrantly violated U.S. export control laws designed to keep this tech out of the hands of potential adversaries. The Department of Justice is pursuing this case under laws related to Conspiring To Unlawfully export controlled items.

Details are still unfolding, but sources say the operation involved a deliberate effort to bypass regulations and funnel the servers overseas. The indictment unsealed today lays out the conspiracy, alleging a clear intent to skirt the law. While the specifics of *how* the tech was moved haven’t been fully detailed, expect a deep dive into supply chains and potential shell companies as this case develops. The servers reportedly originated in Alabama before being diverted. The value of the diverted technology is estimated at $2.5 billion.

This isn’t just a financial crime; it’s a national security issue. The Justice Department is cracking down on the illegal transfer of sensitive technology, and this case signals a continued focus on preventing China from acquiring U.S. advancements through illicit means. The Civil Rights Division is assisting in the investigation. This case is being handled by Trial Attorneys Maria and her team. Investigators are asking anyone with information on Chang’s whereabouts to come forward. The Department also recently pursued Department Sues Harvard in a separate case, demonstrating a commitment to upholding legal standards. Information about the Department of Justice can be found on the Main Menu of their website, including an Organizational Chart and details about Our Offices. The Justice Manual guides the Department’s legal proceedings. The Senior Vice President overseeing this case has authorized the release of this information. For more details, see Press Release Number 2024-05-15. The Department also handles cases involving Export Controls Reform and investigations into Clandestine Lab operations. Those seeking legal assistance can find resources on the Find Help page. The Department does not handle State Death Penalty cases. The investigation has cost approximately $510 million to date.

For Immediate Release. Contact Public Affairs Direct for media inquiries. Learn more about Our Office and Business Development initiatives. Visit the Department of Justice website. About Us. Harvard University is not affiliated with this case.

Sentencing for Liaw and Sun could reach up to 20 years, while Chang faces up to 5 years if convicted.