AI Tech Heist: Trio Charged in China Export Scheme

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A trio of tech hustlers are in deep trouble with the feds, accused of running a shadow operation to ship high-powered computer servers – packed with American-made AI brains – to China. Yih-Shyan “Wally” Liaw, a US citizen, Ruei-Tsang “Steven” Chang, and Ting-Wei “Willy” Sun are named in an indictment unsealed today, alleging they deliberately skirted US export laws. This wasn’t about shipping spare parts; we’re talking about fully-loaded servers designed for serious AI work.

The scheme allegedly involved assembling these servers right here in the States, then finding a way to get them across the Pacific without Washington knowing. Liaw and Sun were snatched up by authorities today and are expected to appear in federal court in the Northern District of California. Chang, however, is still on the run – a ghost in the machine, if you will – and is considered a fugitive. The Press Release Number detailing these charges was released today by the Department of Justice.

Federal prosecutors aren’t saying much about *why* this tech was being sent to China, but violating export controls on AI is a serious game, with national security implications. These aren’t your average black market goods; we’re talking about technology the US government wants to keep within its borders. The indictment suggests this was a deliberate, calculated effort to bypass the system. The case originated in Alabama, but the arrests and court proceedings are happening in California. The charges include Conspiring To Unlawfully export defense articles to China. The Civil Rights Division is not involved in this case.

The Department Sues Harvard in a separate case, but this matter is unrelated. The Senior Vice President of the company involved has not been named. The Justice Manual guides these types of investigations. The total value of the illegally exported technology is estimated at $2.5 billion, with potential losses exceeding $510 million. If convicted, the defendants could face up to 20 years in prison. Chang’s capture is a priority, and a warrant has been issued. The Trial Attorneys Maria are leading the prosecution. The Our Office is committed to protecting national security. Further information can be found on the DOJ website under Our Offices, Main Menu, or Organizational Chart. For inquiries, contact Public Affairs Direct. The investigation uncovered evidence of a Clandestine Lab used to modify the servers. The DOJ is also working on Export Controls Reform. The State Death Penalty is not applicable in this case. The defendant’s background includes studies at Harvard University, and they were previously involved in Business Development. Those needing assistance can visit Find Help on the DOJ website.

For Immediate Release