Crime doesn’t Pay, Super Micro Computer (NASDAQ: SMCI) stock plunged 27% following criminal charges against a company co-founder.

The US charged Super Micro co-founder Yih-Shyan “Wally” Liaw with illegally diverting billions of dollars in Nvidia-powered servers to China in violation of US export controls. Prosecutors allege Liaw and two others associated with the company sold the AI technology through a Southeast Asia company knowing it would be sent to China.

Also charged were Ruei-Tsang “Steven” Chang, who served as a manager in Super Micro’s Taiwan office, and Ting-Wei “Willy” Sun, an outside contractor described by US authorities as a “fixer” who allegedly aided in the diversion.

Super Micro shares fell more than 25% in pre-market trading following the announcement.

The indictment raises reputational risk for Super Micro and highlights limited progress in improving its financial controls, according to Ho. Super Micro was not named in the export-control violation indictment.