Stanley Yi Zheng, Matthew Kelly, and Tommy Shad English have been charged with conspiring to commit smuggling and export control violations related to attempts to illegally ship advanced computer chips from the United States to China through Thailand, according to a March 25 announcement by federal authorities.
The case underscores concerns about the protection of sensitive technology vital for national security. Authorities say that safeguarding such innovations is crucial for both U.S. competitiveness and public safety.
U.S. Attorney Theodore S. Hertzberg said, “Keeping sensitive tech from falling into the wrong hands is a matter of utmost importance to our national security and U.S. competitiveness.” Hertzberg added, “My office is proud to ensure that any bad actor who seeks to profit from endangering our security will face justice in an American courtroom.” Peter Ellis, Acting Special Agent in Charge of FBI Georgia, said, “The individuals charged in this case attempted to bypass U.S. export laws to send sensitive technology to adversaries.”
According to court documents, Zheng, Kelly, and English began their conspiracy in May 2023 by seeking millions of dollars’ worth of export-controlled computer chips from a California hardware company for shipment through Thailand with an intended final destination of China. The defendants allegedly used Thai companies as fronts while planning for the AI chips’ diversion into China. In October 2023, English ordered 750 servers containing controlled chips valued at $170 million but certified falsely that they were not destined for China; ultimately this deal was not completed after compliance checks raised red flags about the true end user.
Text messages cited by investigators show discussions among the defendants about faking corporate information and recruiting others into their scheme while acknowledging the risks posed by violating embargoes on exports bound for China.
Zheng was arrested on March 22 in California; Kelly and English surrendered on March 25 in New York and Georgia respectively. The charges are accusations only; all three are presumed innocent unless proven guilty.
The Department of Commerce’s Bureau of Industry & Security led the investigation along with other federal agencies including Homeland Security Investigations and the Federal Bureau of Investigation.
Theodore S. Hertzberg holds the position of United States Attorney for the Northern District of Georgia according to the official website. The office prioritizes prosecution of threats such as terrorism, human trafficking and civil rights violations according to its official website. It also enforces federal criminal laws while collaborating with law enforcement partners according to its official website.
Serving as principal federal law enforcement agency across north Georgia mountains, Atlanta suburbs and bordering states—with jurisdiction over cases involving nationwide or international dimensions—the office covers a region serving approximately 7.5 million residents according to its official website.
