Submission + - DOJ Arrests U.S. Citizens and Chinese Nationals for Exporting AI Tech to China (pjmedia.com)
The two American citizens who were arrested are Hon Ning Ho, also known as “Mathew Ho,” a Tampa resident who was born in Hong Kong, and Brian Curtis Raymond from Huntsville, Alabama. The two Chinese nationals arrested by the DOJ are Cham Li, also known as “Tony Li,” a resident of San Leandro, California, and Jing Chen, also known as “Harry Chen,” a 45-year-old who was living in Tampa under an F-1 nonimmigrant student visa.
All four were arrested and appeared in courtrooms in their respective jurisdictions on Nov. 19.
“The indictment unsealed yesterday alleges a deliberate and deceptive effort to transship controlled NVIDIA GPUs to China by falsifying paperwork, creating fake contracts, and misleading U.S. authorities,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division is committed to disrupting these kinds of black markets of sensitive U.S. technologies and holding accountable those who participate in this illicit trade.”
The charges the defendants face include multiple counts of conspiracy to violate the Export Control Reform Act (ECRA); ECRA violations; smuggling; conspiracy to commit money laundering, and money laundering. Each defendant faces a possible 20-year prison sentence for each ECRA violation, 10 years per smuggling count, and 20 years per money laundering count. Given the number of counts they face, it’s possible they could spend the rest of their lives in prison.
The defendants will be tried in federal court in Florida.
Earlier this year, a report from the Financial Times revealed that at least $1 billion worth of Nvidia’s chips were shipped to China after the Trump administration began to intensify the restrictions on microchips to China.