Super Micro Computer said on Thursday that an independent investigation led by its board found no evidence that current members of senior management knew about an alleged scheme to smuggle $2.5 billion in hardware packed with Nvidia chips to China.
The announcement was meant to clear the air for investors after a shaky five months following the U.S. Department of Justice’s March indictment of co-founder and board member Yih-Shyan “Wally” Liaw. But questions remain despite Thursday’s announcement of the investigation results; the server manufacturing company offered scant details about what specifically was found in the investigation, only that the board did not find evidence the CEO and senior management were aware of the alleged smuggling ring. Meanwhile, a parallel probe by authorities in Taiwan led to four Supermicro employees being detained for questioning last month in connection with Supermicro sales to a tech company, and in June Supermicro got hit with a federal grand jury subpoena in New York.
So while the company’s investigation may be over, the government and overseas colleagues appear to still be digging. Thursday’s announcement that the investigation had wrapped made no mention of the events in Taiwan or the grand jury subpoena and did not mention Liaw by name.
“They basically said, ‘nothing to see here,’” said Mark Newman, managing director at equity research firm Bernstein. “There may be some more detail about the indictment later down the line, but I think SMCI is trying to bury this and not talk about it as much as possible.”
Supermicro which was not named in the indictment, declined to comment beyond the press release.
The internal investigation was launched last April after Liaw was indicted for allegedly serving as the ringleader in the alleged smuggling operation, with two others accused of helping him. Liaw co-founded Supermicro with Chairman and CEO Charles Liang and Liang’s wife, Sara Liu, more than three decades ago and served as a senior executive and board member up until the day his charges were unsealed on March 19. Liaw has since pleaded not guilty and his trial was pushed back from November 2026 to March 2027 after Liaw’s lawyer revealed at a hearing in June that Supermicro had received the grand jury subpoena.
Given the senior position Liaw held and his long history with Liang and Liu, who both serve on the board, some investors have called for Supermicro to clean house with its management team. The company on Thursday said it “took several personnel actions with respect to employees within its sales, technical support and business development functions, including terminations, for failure to follow Company policies or the Company’s code of conduct” in connection with the investigation.
Supermicro has also been subpoenaed by the Securities and Exchange Commission, with staff requesting documents related to customers, including the customer that was the subject of the allegations in the indictment. The grand jury subpoena came from the U.S. Attorney’s Office for the Southern District of New York, seeking documents and information related to Liaw and others named in the indictment. Liaw’s trial was postponed following the grand jury subpoena reveal, which Liaw’s attorney argued could produce documents material to his defense. Liaw is facing up to 20 years in prison.
Liaw’s lawyer did not respond to a request for comment.
What the investigation found
The internal probe was led by lead independent director Scott Angel, a former audit partner with Deloitte, and audit committee chair Tally Liu. They retained Munger, Tolles, & Olson as outside counsel and brought in advisory firm AlixPartners as a forensic accounting consultant.
According to Supermicro, the investigation team reviewed the specific customer transactions from the federal indictment along with “a selection of other customers who bought restricted products.” It found no evidence management knew about the alleged smuggling, no evidence the company sold export-controlled products to banned companies or individuals, and no evidence the previously issued financial statements were unreliable.
“We are pleased to report the conclusion of this independent investigation,” said Angel in a statement. “The independent directors support the actions the Company has already taken to bolster its internal policies and procedures, as well as the additional enhancements that will be implemented.”
Second investigation in two years
This is the second time in two years the company has cleared its management team following an internal investigation. In 2024, the company wrapped a probe after auditor EY abruptly resigned mid-audit, concluding there was no evidence of fraud or misconduct. That probe was led by board member Susie Giordano, who reviewed 11 export transactions and found no evidence anyone at the company tried to circumvent export controls or was aware of any product diversion. The timing in Liaw’s court records indicates his alleged smuggling ring was ongoing during this investigation.
The 2024 investigation recommended multiple personnel actions, including that chief financial officer David Weigand be replaced “immediately” with someone with “extensive experience working as a senior finance professional at a large public company.” Weigand remains in the role 20 months later.
Supermicro was previously delisted from Nasdaq following an SEC investigation into its accounting practices. Supermicro settled with the SEC in 2020 for $17.5 million and former CFO Howard Hideshima was separately charged and fined. Liaw resigned from the board and the company at the time, but he came back in May 2021 as an outside consultant, before being named senior vice president.
In December 2023, he rejoined the board. Five months after his return to the board, prosecutors allege the smuggling operation was in full swing.
In a March 2026 letter to investors, Liang said the company was a victim.
“I am deeply saddened and shocked that actions of these individuals were placed above our mission and our responsibility to national security,” the letter states.
Liaw’s trial is set for March 2027.
This story was originally featured on Fortune.com
