Chip Smugglers Busted: Pasadena & El Monte Pair Face 20 Years

LOS ANGELES – A brazen scheme to funnel sensitive technology to China has landed two individuals in federal custody. Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, face felony charges after allegedly orchestrating the illegal export of tens of millions of dollars’ worth of specialized computer parts, according to a Justice Department announcement.

The pair are charged with violating the Export Control Reform Act, a serious federal offense carrying a potential sentence of up to 20 years in federal prison. Geng surrendered to authorities Saturday, while Yang was apprehended earlier that same day. During initial court appearances Monday, a magistrate judge ordered Geng released on $250,000 bond. Yang remains in custody, with a detention hearing scheduled for August 12. Arraignment is set for September 11, though no pleas have been entered at this time.

Federal investigators allege that, from October 2022 through July 2025, Geng and Yang, operating through their El Monte-based company, ALX Solutions Inc., knowingly exported restricted technology without the necessary licenses from the U.S. Department of Commerce. The timing is crucial: ALX Solutions Inc. was reportedly established shortly after the Commerce Department began requiring licenses for these advanced microchips – suggesting a deliberate attempt to circumvent the law. Geng is a lawful permanent resident; Yang is an illegal alien who overstayed her visa.

A deep dive into export and business records reveals a pattern of deception. At least 20 shipments from ALX Solutions, including one in December 2024, were routed through Singapore and Malaysia – common transshipment points used to mask the ultimate destination of illegal exports. The company didn’t receive payment from the supposed recipients of these goods. Instead, ALX Solutions allegedly received substantial funds from companies based in Hong Kong and China, including a $1 million payment from a China-based entity in January 2024.

The December 2024 shipment is a prime example. Documents falsely indicated the shipment contained permissible goods, but it actually held chips requiring export licenses to China. Neither the defendants nor their company ever applied for – or received – such a license. The chips themselves are described as the “most powerful” of their kind and were designed for advanced computing applications. Last week’s search of ALX Solutions’ office yielded incriminating communications on the phones of both Geng and Yang, detailing their efforts to ship the controlled technology through Malaysia to evade U.S. export laws.

Prosecutors – Assistant U.S. Attorneys Colin S. Scott, Joseph Guzman, and Jenna Long, along with Trial Attorney Chantelle Dial – are building their case. It’s important to remember that a criminal complaint contains allegations, and both defendants are presumed innocent until proven guilty in a court of law. The investigation is a joint effort by the Bureau of Industry and Security and the FBI. This case underscores the ongoing federal efforts to protect sensitive technology from falling into the wrong hands.