Supermicro Replaces CFO Amid Smuggling Allegations

Mark Long, a seasoned executive with experience at Western Digital and Prime Impact Capital, has been appointed as Supermicro's new Chief Financial Officer, effective immediately on Wednesday. He replaces Weigand, who will assist in the transition.

Long's appointment occurs during a complex period for Supermicro, a company with significant ties to Nvidia and Elon Musk's ventures. This move is seen as an effort to stabilize the company and improve its standing with investors, following a period of scrutiny.

Supermicro faces legal challenges stemming from the March arrest of co-founder Yih-Shyan Liaw. Liaw was indicted in a smuggling case involving an alleged $2.5 billion in Supermicro hardware and Nvidia's export-controlled chips destined for China.

While Supermicro is cooperating with law enforcement and is not a defendant, Liaw has pleaded not guilty. His arrest triggered an internal investigation that, as of August, found no evidence of senior management's knowledge of the scheme.

This situation is compounded by past legal issues, including a 2018 SEC probe into improper revenue recognition, which Supermicro settled in 2020 for $17.5 million.

Supermicro has also disclosed receiving grand jury subpoenas from the U.S. Attorney's Office for the Southern District of New York and inquiries from foreign authorities, the SEC, and the Bureau of Industry and Security, related to Liaw's indictment and the company's compliance programs.

One individual indicted with Liaw, Ting-Wei Sun, pleaded guilty last week to charges including conspiracy to smuggle goods and obstruction of justice, with sentencing expected in September 2027.