U.S. Authorities Shut Down Major China-Linked AI Tech Smuggling Network

 

‘Operation Gatekeeper’ Disrupts Trafficking Network and Seizes More Than $50 Million in Advanced GPUs Destined for China and Other Restricted Locations

Two businessmen are now in custody for allegedly violating U.S. export control and smuggling laws. As part of the overall investigation, a Houston company and its owner also pleaded guilty to smuggling cutting-edge Artificial Intelligence (AI) technology out of the United States, and the United States has seized over $50 million in Nvidia technologies and cash. 

“The United States has long emphasized the importance of innovation and is responsible for an incredible amount of cutting-edge technology, such as the advanced computer chips that make modern AI possible,” said Assistant Attorney General for National Security John A. Eisenberg. “This advantage isn’t free but rather the result of our engineers’ and scientists’ hard work and sacrifice. The National Security Division, along with our partners, will vigorously enforce our export-control laws and protect this edge.” 

“Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation’s security by funneling cutting-edge AI technology to those who would use it against American interests,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “These chips are the building blocks of AI superiority and are integral to modern military applications. The country that controls these chips will control AI technology; the country that controls AI technology will control the future. The Southern District of Texas will aggressively prosecute anyone who attempts to compromise America’s technological edge.”

“Gong and his accomplices allegedly led a complex scheme to smuggle high-performance graphic processing units to China in violation of U.S. export laws,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division. “This case highlights the importance of interagency cooperation to protect U.S. technology; the FBI, alongside our partners, will continue to aggressively investigate these violations and bring those responsible to justice. We ask our private sector partners to remain vigilant to this increasing threat as our adversaries try to match U.S. artificial intelligence breakthroughs.”

According to court documents, Alan Hao Hsu, also known as Haochun Hsu, 43, of Missouri City, Texas, and his company, Hao Global LLC, both pleaded guilty to smuggling and unlawful export activities on Oct. 10, 2025. According to now unsealed court documents, between October 2024 and May 2025, Hsu and others knowingly exported and attempted to export at least $160 million worth of export-controlled Nvidia H100 and H200 Tensor Core graphic processing units (GPUs). 

The H100 and H200 are high-speed GPUs used for AI applications and high-performance computing. They are designed to process massive amounts of data, advancing generative AI and large language models and accelerating scientific computing. These GPUs are used for both civilian and military applications.

Hsu and others falsified shipping paperwork, misclassifying the true nature of the goods and their recipients to conceal the ultimate destination of the GPUs. Hsu and Hao Global received more than $50 million in wire transfers that originated from the People’s Republic of China (PRC) to help fund the scheme. The GPUs were ultimately shipped to the PRC, Hong Kong and other destinations in violation of U.S. export laws.

At sentencing, Hsu faces up to 10 years in prison on Feb. 18, and Hao Global LLC faces a maximum penalty of twice the gross gain from the offense and a term of probation.

Also charged in relation to the scheme are two PRC natives. Benlin Yuan, 58, the chief executive officer of a Sterling, Virginia, IT services company, which is the U.S. subsidiary of a large PRC IT company based in Beijing, was arrested in Sterling, Virginia, on Nov. 28 and charged with conspiring to violation the Export Control Reform Act (ECRA) of 2018. Yuan is a Canadian citizen who resides in Mississauga, Ontario.

Fanyue Gong, also known as Tom Gong, 43, a PRC citizen who resides in Brooklyn, New York, is the owner of a New York technology company and was arrested in New York on Dec. 3. Gong was charged with conspiring to smuggle goods out of the United States.

According to charging documents, Gong and Yuan also independently conspired with employees of a Hong Kong-based logistics company and a China-based AI technology company to circumvent U.S. export controls.

The criminal complaint against Gong alleges that co-conspirators obtained Nvidia GPUs through straw purchasers and intermediaries, falsely indicating that the goods were for U.S. customers or customers in third countries that do not require a license to export. The GPUs were shipped to multiple U.S. warehouses where individuals who worked for Gong removed Nvidia labels and re-labeled the GPUs with the name “SANDKYAN” – a fake company – and then prepared the goods for export at his direction. The shipping and export paperwork for the GPUs allegedly misclassified the goods as generic computer parts. The charges allege co-conspirators then shipped the goods or attempted to do so to the PRC and Hong Kong in violation of U.S. laws.

According to the complaint, Yuan helped recruit and organize individuals to inspect the mislabeled GPUs on behalf of the Hong Kong logistics company. Yuan allegedly agreed to direct inspectors not to say the goods were destined for the PRC. The government also alleges Yuan directed discussions regarding crafting a story his company could use to get GPUs and other equipment released after federal law authorities detained it. Yuan allegedly engaged in several conversations about providing false information to U.S. authorities regarding the ultimate customer of the goods.

As alleged, Yuan also participated in and agreed to direct actions involving the handling and storage of another export of Nvidia GPUs on behalf of the Hong Kong logistics company.

If convicted, Yuan faces up to 20 years in prison for conspiring to violate ECRA and up to a $1 million fine. If convicted, Gong faces up to 10 years in prison for conspiring to smuggle goods out of the United States.

Hsu was permitted to remain on bond pending sentencing. Yuan and Gong are currently in custody pending further criminal proceedings.

The Commerce Department’s BIS Office of Export Enforcement Dallas Field Office, Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Dallas, and FBI New York and Washington Field Offices are investigating the case.

Assistant U.S. Attorneys John Marck and Mark McIntyre for the Southern District of Texas and Trial Attorney Fatema Merchant of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with substantial assistance provided by Yifei Zheng, also from the Counterintelligence and Export Control Section.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Two Men Charged With Committing String Of Robberies In Manhattan And Mount Vernon

 

United States Attorney for the Southern District of New York, Jay Clayton, and Resident Agent in Charge of the Hudson Valley Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Kelvin Jackson, announced the arrest of JYEREONNE RANSOM and KENNETH CRUTE in connection with a string of armed robberies in Mount Vernon and New York, New York.  RANSOM and CRUTE were arrested on December 6, 2025, and presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy, who ordered them detained. 

"As alleged, over the course of three weeks in November, Jyereonne Ransom and Kenneth Crute carried out a series of gunpoint robberies,” said U.S. Attorney Jay Clayton.  “When offenders choose gun violence in New York, we will work to get them off the street using our robust federal investigative tools and partnerships, and they will be charged with serious federal crimes, often carrying mandatory minimums and consecutive sentences, so that they remain off the street.” 

“These arrests stem directly from the strong collaboration between ATF NY’s Hudson Valley Field Office and the Mount Vernon Police Department,” said ATF Resident Agent in Charge Kelvin Jackson.  “By combining our expertise and resources, we were able to swiftly stop a pattern of armed robberies that threatened innocent lives.  Our agencies remain firmly committed to safeguarding our communities, and the U.S. Attorney’s Office for the Southern District of New York will now take the case forward.  This type of violence creates fear within the community, and we refuse to tolerate it.  We will persist in doing everything we can to reduce violent gun crime in our streets.”

As alleged in the Complaint filed in White Plains federal court:[1]

RANSOM and CRUTE committed a string of robberies between November 10, 2025, and November 29, 2025, including: a November 10, 2025, gunpoint robbery of a restaurant in upper Manhattan; a November 12, 2025, gunpoint robbery of a restaurant in Mount Vernon; a November 19, 2025, gunpoint robbery of a gas station in Mount Vernon; and a November 29, 2025, robbery of a restaurant in Mount Vernon.

RANSOM, 19, of New York, New York, is charged with conspiracy to commit Hobbs Act robbery and four counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison; and three counts of brandishing a firearm in furtherance of a crime of violence, each of which carries an additional mandatory minimum sentence of seven years in prison and must be served consecutively to any other prison terms imposed.     

CRUTE, 18, of New York, New York, is charged with conspiracy to commit Hobbs Act robbery and three counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison; and two counts of brandishing a firearm in furtherance of a crime of violence, each of which carries an additional mandatory minimum sentence of seven years in prison and must be served consecutively to any other prison terms imposed.     

The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Clayton praised the outstanding investigative work of the ATF Hudson Valley Field Office, the City of Mount Vernon Police Department, the New York City Police Department, and the Westchester County Department of Public Safety.

The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jake Sidransky is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Statement From Governor Kathy Hochul

“The U.S. District Court's decision to uphold New York’s nation-leading offshore wind program is a major victory for our state and the entire region.

“The Trump administration has repeatedly tried to block these projects, risking blackouts and thousands of good-paying jobs. I'll always fight like hell to protect New Yorkers — today's decision shows that fight matters.

“Thanks to Attorney General James’ leadership in the courts, we’ll keep advancing our all-of-the-above energy strategy, investing in offshore wind and other renewables to secure our grid, tackle the climate crisis, and keep our rates affordable.”

 

This Friday 12/12: Join State Senator Gustavo Rivera's Hands Off NYC Day of Action!

 

Dear Neighbor,

Join me and my team at 11AM on Friday in front of the U.S. ARMY Recruitment Center on Fordham Road for a Hands Off NYC Day of Action.

The Trump administration is targeting our neighbors so we are educating them about their rights and how to protect ourselves from ICE. Shout out to the Hands Off NYC coalition for organizing and preparing us with whistles and materials.

Come through on Friday to learn more!

Sincerely, 

Gustavo Rivera

New York State Senator

33rd Senate District, The Bronx

Estimado vecino:

Acompáñenme a mí y a mi equipo este viernes a las 11:00 a.m. frente al Centro de Reclutamiento del Ejército de EE. UU. en Fordham Road para un Día de Acción "Manos Fuera de Nueva York".

La administración Trump tiene en la mira a nuestros vecinos, así que les estaremos enseñando sobre sus derechos y cómo protegernos de ICE. Un agradecimiento especial a la coalición "Manos Fuera de Nueva York" por organizarnos y prepararnos con silbatos y materiales.

¡Vengan el viernes para más información!

Atentamente,

Gustavo Rivera

Senador del Estado de Nueva York

Distrito Senatorial 33, El Bronx

DEC’S “DON’T BE SALTY, NEW YORK” CAMPAIGN HELPS PROMOTE BEST PRACTICES TO KEEP NEW YORKERS SAFE AND WATERS PROTECTED

 

New Yorkers Encouraged to Reduce Rock Salt Use to Help Reduce Pollution of Waterways and Drinking Water Supplies

New York State Department of Environmental Conservation (DEC) Commissioner Amanda Lefton joined State and local officials to encourage New Yorkers to reduce the overuse of rock salt when possible, and “Don’t Be Salty, New York.” Although applying rock salt on roadways, parking lots, and sidewalks helps to ensure the safety of those traveling by vehicle or foot, overuse of salt can be costly for consumers, degrade infrastructure, contaminate runoff that enters streams and waterbodies, and impact drinking water. 

“It only takes one teaspoon of salt to pollute five gallons of water,” Commissioner Lefton said. “We’re asking all New Yorkers to take common-sense precautions before using too much rock salt on their sidewalks, driveways, and other places around their homes and businesses to help prevent unknowingly harming our environment. ‘Don’t Be Salty’ and help save your money, remain safe, and protect our waterbodies.” 

To help protect water quality while maintaining public safety, DEC launched the “Don’t Be Salty, New York” public awareness campaign to help educate property owners, managers, communities, and snow and ice removal professionals about the impacts of rock salt and the various strategies that can be implemented to reduce salt use. Consistent with a recommendation in the 2023 Adirondack Road Salt Reduction Task Force report, DEC conducted a public survey in 2024 to better understand perceptions surrounding rock salt usage and make appropriate recommendations for reduction strategies to be applied throughout New York. Working with ADK Action’s “Clean Water Safe Roads” campaign, DEC developed the State’s multimedia campaign to expand beyond Adirondack communities and reach all New Yorkers. 

In addition to increasing public awareness, DEC coordinates with colleagues at the New York State Department of Transportation (NYSDOT) and the New York State Department of Health to ensure New York’s salt reduction priorities are incorporated and considered within agency programs. State agencies collaborate to align the work of programs and coordinate outreach and mitigation efforts. 

In August 2025, NYSDOT announced a statewide expansion of its road salt management pilot program for the 2025-26 snow and ice season. NYSDOT takes the issue of road salt management very seriously and for more than a decade has been a national leader in the effort to reduce the use of salt while still maintaining a safe and reliable transportation system. These efforts include but are not limited to enhanced training for snowplow operators, direct liquid applications in place of road salt, continuous evaluation of innovative equipment, and utilization of best management practices for reducing road salt. As a result, the statewide average application rate for granular salt was reduced to 172 pounds per lane-mile during the 2024-25 snow and ice season, down from the seven-year statewide average application rate of 194 pounds per-lane-mile. 

State Department of Transportation Commissioner Marie Therese Dominguez said, “Our crews are among the finest snow fighting forces in the nation and part of what makes them so good is the commitment to not only maintain public safety but also to be good stewards of the environment. For more than a decade we have been working to minimize road salt use as much as possible and the results speak for themselves. Now, it’s time to expand the battle. We encourage everyone to implement judicious salt management practices that minimize salt use while still maintaining safety. A less salty winter will mean a greener, healthier future for us all.” 

DEC encourages all New Yorkers to use these “Don’t Be Salty, New York” best practices to save money, reduce rock salt pollution, and stay safe:

• Use Rock Salt Sparingly
  • Shovel first, if possible, to clear snow and ice before applying rock salt. The less snow and ice there is to melt, the less rock salt is needed;  
  • Apply rock salt strategically. A 12-ounce cup full of rock salt is enough to treat 250 square feet, a 20-foot single car driveway, or approximately 10 standard sidewalk squares;
  • Apply rock salt only where it is needed most, such as walkways, driveways, and steps;
  • Use a spreader to evenly distribute salt. Avoid piling it in one area, as this can lead to more salt runoff.
• Monitor Weather Conditions
  • Rock salt loses effectiveness below 15°F. Sand can be used for traction on ice during a cold snap (and can be swept up in the spring for reusing) or switch to a deicer made for colder temperatures.
  • If a snow or ice storm is predicted, consider pre-treating surfaces with rock salt to prevent ice from forming.
• Consider Using Alternative Products
  • Consider making your own brine solution at home by combining 3.5 cups of rock salt per gallon of hot tap water and stirring until all salt is dissolved. Let any gravel settle to the bottom. Pour the brine into a regular garden sprayer and spray in a zig-zag pattern over desired area. Save extra brine to use later.
  • Use products from the GreenNY specifications listed on the DEC website. 

Among the many impacts of rock salt overuse:

• Rock salt can run off into surface waters through snow melt and stormwater or leach into groundwater.
• Excessive rock salt in surface water can cause stress to, or kill, fish and other aquatic organisms.
• Rock salt washed off surfaces will accumulate in soils, which can kill vegetation or deplete plants of nutrients. Eventually, non-native salt-tolerant vegetation could move in and disrupt ecosystems.
• Salty roads attract animals like deer and moose (who love licking up the salt), increasing the probability of accidents and roadkill.
• The presence of sodium in drinking water is problematic for individuals with low-salt or limited-salt dietary restrictions. People on a sodium-restricted diet can experience health risks when exposed to elevated levels of sodium in their drinking water.
• Rock salt has corrosive properties that can corrode metals, including lead, copper, iron, and steel, from pipes and other infrastructure.
• These corrosive effects also impact cars, trucks, bridges, and roads resulting in approximately $5 billion dollars in annual repairs in the U.S. alone (USEPA)
• Households using private wells and small unregulated water systems are at the greatest risk of negative impacts from corrosion. Regulated public water systems sample for lead and copper and reduce corrosion if required.  

In support of the “Don’t Be Salty” campaign, DEC developed a fact sheet for municipalities that includes information about Water Quality Improvement Project (WQIP) funding. DEC developed a video depicting the importance of salt reduction that can be found here, and released a podcast episode called Don’t Be Salty New York, available on DEC’s website. The October/November issue of DEC’s Conservationist magazine also provides a good overview of the salt overuse problem and solutions. For additional information and resources, visit DEC’s Rock Salt Reduction webpage: https://dec.ny.gov/environmental-protection/water/rock-salt-reduction. 

New York State is providing significant resources for communities statewide to reduce road salt impacts and implement recommendations for road salt use reduction. DEC in 2024 to help protect water, a competitive, statewide reimbursement grant program that supports implementation projects that directly improve water quality or habitat, promote flood risk reduction, restoration, enhanced flood and climate resiliency, or protect a drinking water source. DEC expects to announce additional funding awards for salt storage and road salt reduction practices under the 2025 round of WQIP.

DHS Unveils WOW.DHS.GOV: New Searchable Website Lets You Find Criminal Illegal Aliens Removed From Your Community

 

70% of ICE arrests are of criminal illegal aliens charged or convicted of a crime in the United States—this statistic doesn’t even include foreign fugitives, gang members, terrorists, and human rights abusers

The U.S. Department of Homeland Security (DHS) today announced the launch of a new webpage, “Worst of the Worst” (wow.dhs.gov), which aggregates information on criminal illegal aliens arrested by DHS during enforcement operations since the start of the Trump Administration.

The webpage allows visitors to search through some of the hundreds of thousands of criminal illegal aliens who have been arrested across all 50 states, with criminal histories that include homicide, assault, rape, drug trafficking, child molestation, cruelty toward a child, battery, and armed robbery, among other crimes.

“This new Worst of the Worst webpage allows every American to see for themselves the criminal illegal aliens that we are arresting, what crimes they committed, and what communities we removed them from. This is all about transparency and showing results,” said Assistant Secretary Tricia McLaughlin. “As the media whitewashes the facts, day in and day out, our brave men and women of ICE risk their lives for the American people. Americans don’t have to rely on the press for this information – with this transparent tool, they can see for themselves what public safety threats were lurking in their neighborhoods and communities.”

Under Secretary Noem’s leadership, DHS has fulfilled President Trump’s promise to carry out mass deportations – starting with the worst of the worst – including the thousands of criminal illegal aliens featured on the new webpage.

The launch comes as sanctuary city and state leaders refuse to assist federal law enforcement in honoring federal immigration detainers, and as malicious lies and hoaxes, driven by hateful rhetoric from the mainstream media, continue to distort the work of the brave men and women of ICE and CBP. With assaults against officers up more than 1,150% and an unprecedented surge in vehicle ramming attacks, the page showcases the incredible work of our officers as they continue to remove violent criminals from our streets and protect American families. The new page will feature 10,000 arrests upon launch and the Department will continue to update the page.

Some of the Worst of the Worst arrests featured on the page include:

Yehia Elham Badawi, a 48-year-old criminal illegal alien from Egypt with an extensive rap sheet including robbery, aggravated assault, and multiple violent felonies stemming from a 1994 shootout that left a Philadelphia police officer seriously wounded.

Nicol Alexandra Contreras-Suarez, a transgender criminal illegal alien from Colombia who is charged with the rape of a minor and stalking in New York.

Jimmy Harry Velasquez Gomez, a twice deported criminal illegal alien from Honduras and repeat sex offender, convicted of indecent exposure in 2018 and now facing charges of cruelty toward a child and lewd or lascivious acts with a minor.

Mehran Makari Saheli, a 56-year-old Iranian national convicted of being a felon in possession of a firearm in Minneapolis. He is a former member of the Islamic Revolutionary Guard Corps (IRGC) with admitted connections to Hezbollah.

Aldrin Guerrero-Munoz, a criminal illegal alien sentenced to 32 years in prison for the intentional murder of his 3-month-old son and convicted for assaulting a fellow inmate at Stillwater Prison.

New York Man Convicted of Hobbs Act Extortion

 

Defendant Violently Attacked Owner of Demolition Business in Midtown Manhattan Over Purported Debt

Today, a federal jury in Brooklyn convicted Robert Brooke of one count of Hobbs Act extortion.  From at least November 2019 to January 2020, the defendant violently extorted the owners of a demolition company of thousands of dollars, purportedly to satisfy a disputed debt.  The verdict was returned after a three-day trial before United States District Judge Frederic Block.  Brooke was acquitted of Hobbs Act extortion conspiracy.  When sentenced, Brooke faces up to 20 years in prison.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

“Those who choose to settle disputes violently in the street are choosing to go to prison,” stated United States Attorney Nocella.  “Today’s verdict holds the defendant accountable for his brazen conduct.”

As proved at trial, in the fall of 2019, the defendant engaged in a violent extortion scheme against the victim owners of a demolition company over purported debts owed to Diego Tantillo, an inducted member of the Gambino organized family, and a company that was co-operated by Tantillo and Brooke (the Company).  On December 18, 2019, one of the victims was walking to work when he was ambushed and attacked by Brooke at 50th Street and Eighth Avenue in Manhattan.  The victim suffered a fractured cheek bone, black eye and contusions to his face.  The victim testified that he and his brothers, who were partners in the demolition company, understood that Tantillo, who they knew was a member of the Gambino organized crime family, was involved in the attack by Brooke.  In the weeks after the beating, Tantillo reached out to the victim brothers and told them to pay Brooke and to drop the criminal charges against the defendant.  Fearing for themselves and their employees, the owners of the demolition company paid $50,000 to Tantillo and $40,000 to the Company. Tantillo pleaded guilty to racketeering conspiracy in October 2025 and is awaiting sentencing.

Department of Justice Leadership Announces New Personnel Appointments and Authorizations in the District of New Jersey

 

Today, following Attorney General Pamela Bondi's announcement that Alina Habba will serve as Senior Advisor to the Attorney General for United States Attorneys, Deputy Attorney General Todd Blanche announced the following personnel appointments and authorizations within the District of New Jersey:

• Philip Lamparello will serve as Senior Counsel and is authorized to supervise or conduct the work of the district’s Criminal Division and Special Prosecutions Division, including such work in the district’s branch offices;
• Jordan Fox will serve as Special Attorney and is authorized to supervise or conduct the work of the district’s Civil Division and Appellate Division, including such work in the district’s branch offices, along with any other matters arising within the district not specifically delegated herein; and
• Ari Fontecchio will serve as Executive Assistant United States Attorney and is authorized to supervise or conduct the work of the district’s Administrative Division, along with any other administrative matters arising within the district.

"The Department of Justice is committed to bringing in the best and brightest to carry out our mission," said Deputy Attorney General Todd Blanche. "I have full confidence in each of these exceptional attorneys and look forward to our continued collaboration as we make New Jersey and America safe again."