A senior executive at a major American server manufacturer, a Taiwan-based manager, and a self-described “fixer” allegedly used dummy servers, fake documents, and a shell company in Southeast Asia to evade U.S. export controls. Two have been arrested; a third remains at large.

In one of the largest alleged diversions of cutting-edge American technology to China, federal prosecutors have unsealed an indictment charging three men with orchestrating a scheme to funnel billions of dollars worth of advanced artificial intelligence servers to Chinese buyers—bypassing U.S. export laws designed to protect national security.

Yih-Shyan “Wally” Liaw, 71, a U.S. citizen and senior executive at a publicly traded American server manufacturer, and Ting-Wei “Willy” Sun, 44, a Taiwanese citizen described as a broker and “fixer,” were arrested Thursday and are expected to appear in federal court in the Northern District of California. A third defendant, Ruei-Tsang “Steven” Chang, 53, a Taiwanese citizen who served as a general manager in the manufacturer’s Taiwan office, remains a fugitive.

The indictment, unsealed Thursday in Manhattan federal court, alleges that between 2024 and 2025, the defendants directed a company based in Southeast Asia to purchase approximately $2.5 billion worth of high-performance servers—many assembled in the United States—on the pretense that the company was the end user. In reality, prosecutors say, the servers were repackaged, placed in unmarked boxes, and shipped to customers in China, all without the export licenses required by U.S. law.