Stanley Yi Zheng, Matthew Kelly, and Tommy Shad English have been charged with conspiring to commit smuggling and export control violations involving computer chips intended for illegal shipment to China through Thailand, according to a March 25 announcement by federal authorities.
The case is significant due to concerns over national security and the protection of advanced computing technologies that could be used in military applications. The charges allege an attempt to bypass U.S. export laws designed to prevent sensitive technology from reaching foreign adversaries.
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.” He 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.”
According to court documents, Zheng, Kelly, and English began working together in May 2023 seeking millions of dollars’ worth of export-controlled computer chips from a California-based company for shipment through Thailand with the ultimate destination being China. Investigators say the defendants used Thailand-based companies as cover for their purchases but intended for the artificial intelligence chips—used in servers—to be diverted illegally.
Special Agent-in-Charge Jason J. Sargenski said advanced computing technologies like graphics processing units are critical for military artificial intelligence: “When individuals attempt to illegally acquire or export this technology for profit, they are putting national security and our warfighters at risk.” Peter Ellis of FBI Georgia called such smuggling efforts "a direct threat" while Steven N. Schrank of Homeland Security Investigations emphasized the role of interagency partnerships: “By working together, we were able to disrupt a sophisticated scheme.”
Text messages between the accused reportedly discussed using fake corporate information and strategies for recruiting others into their scheme while avoiding mention of China so as not draw attention from U.S. authorities.
Zheng was arrested on March 22; Kelly and English surrendered on March 25. All three face initial court appearances in different districts; they are presumed innocent unless proven guilty.
The case reflects broader efforts by federal law enforcement agencies—including those led by the United States Attorney’s Office for the Northern District of Georgia—to prosecute threats ranging from terrorism and trafficking cases with nationwide or international dimensions. The office also enforces federal criminal laws, represents civil matters, serves as principal law enforcement agency, covers a region serving millions across north Georgia, coordinates cross-border cases,and is led by Hertzberg.
Federal officials say they will continue working together nationally and internationally "to identify these networks, disrupt their operations, and hold those responsible accountable."
