U.S. Charges Four in Scheme to Illegally Export AI Chips to China
TAMPA, FL – federal authorities have indicted four individuals – three U.S.citizens and one Chinese national – for allegedly conspiring to illegally export high-end artificial intelligence (AI) technology, specifically NVIDIA H100 and H200 GPUs, to the People’s Republic of China (PRC). The scheme, operating between October 2024 and January 2025, involved attempts to ship the restricted technology without obtaining required U.S. export licenses.
The indictment, unsealed today, details a plot to circumvent U.S.export controls by falsely representing the destination of the GPUs. the alleged conspiracy centered around ten Hewlett Packard Enterprises supercomputers containing NVIDIA H100 GPUs and 50 separate NVIDIA H200 GPUs. While initial exports began, the third and fourth shipments were intercepted by law enforcement, preventing their completion.
“Despite knowing that licenses were required to export these items to the PRC, none of the conspirators ever sought or obtained a license for any of these exports,” according to the Department of Justice. The indictment further alleges the group received over $3.89 million in wire transfers originating from the PRC to finance the operation.
Those charged include:
* Hon Ning Ho, aka “Mathew Ho,” 34, of Tampa, florida, a U.S. citizen born in Hong Kong, facing charges of conspiracy to violate the Export Control Reform Act (ECRA), four counts of ECRA violations, three counts of smuggling, conspiracy to commit money laundering, and nine counts of money laundering.He faces a maximum sentence of 20 years imprisonment per ECRA violation and money laundering count, and 10 years per smuggling count.
* Brian Curtis Raymond, 46, of Huntsville, Alabama, a U.S. citizen, charged with conspiracy to violate ECRA, two counts of ECRA violations, one count of smuggling, conspiracy to commit money laundering, and seven counts of money laundering. He also faces potential sentences of up to 20 years per ECRA violation and money laundering count, and 10 years for smuggling.
* Cham Li,aka ”Tony Li,” 38,of San Leandro,California,a PRC national,charged with conspiracy to violate ECRA,one count of ECRA violation,one count of smuggling,and conspiracy to commit money laundering.
* Jing Chen, aka “Harry Chen,” 45, of Tampa, Florida, a PRC national on an F-1 nonimmigrant student visa, facing charges of conspiracy to violate ECRA, one count of ECRA violation, one count of smuggling, and conspiracy to commit money laundering.
The U.S. government intends to seek forfeiture of the 50 NVIDIA H200 GPUs as property used in the commission of an unlawful export.
This case highlights the ongoing U.S. efforts to restrict the flow of advanced technology to China, especially in the realm of AI, due to national security concerns. The Biden governance has implemented increasingly stringent export controls on semiconductors and related technology to prevent their use in applications that could threaten U.S. interests. the investigation was conducted by Homeland security Investigations, the Defense Criminal Investigative Service, and the Department of Commerce - Bureau of Industry and Security. The prosecution is being lead by Assistant U.S.Attorneys Joseph K. Ruddy and Lindsey N. Schmidt of the Middle District of Florida, and Trial Attorney Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section.
It is important to note that an indictment is merely an allegation, and all defendants are presumed innocent until proven guilty in a court of law.
