AI CHIP EXPORT SCHEME DISRUPTED — THREE DEFENDANTS CHARGED IN MULTI-MILLION DOLLAR PLOT TO DIVERT U.S. CONTROLLED TECHNOLOGY TO CHINA

Investigation reveals front companies, falsified certifications, and coordinated attempts to bypass export restrictions through Southeast Asia.

A federal criminal case has been unsealed charging Stanley Yi Zheng, 56, of Hong Kong, Matthew Kelly, 49, of Hopewell Junction, New York, and Tommy Shad English, 53, of Atlanta, Georgia, with conspiring to violate U.S. export controls through the attempted diversion of advanced artificial intelligence computing hardware to China.

According to criminal complaints filed in the Northern District of Georgia, the defendants are accused of orchestrating a multi-stage procurement scheme designed to acquire export-controlled computer servers containing high-performance AI chips from a California-based supplier and reroute them through Thailand as a transit jurisdiction. The alleged objective was to conceal the true end destination—China—while bypassing federal licensing requirements governing the export of sensitive technologies.

The investigation outlines activity beginning in or around May 2023, when the defendants allegedly initiated coordination to obtain large volumes of advanced computing systems. These systems included graphics processing units (GPUs) and related components classified under the U.S. Commerce Control List due to their strategic applications in artificial intelligence, high-performance computing, and defense-related systems.

In October 2023, English, acting under the identity of a Thailand-based purchasing entity, placed an order for approximately 750 computer servers valued at roughly $170 million. Of those systems, 600 contained export-controlled chips requiring authorization for shipment to restricted jurisdictions. As part of the transaction, English signed an Advanced Computing Certification asserting that the equipment would not be exported to prohibited destinations.

Financial movement followed in January 2024, when more than $20 million was transferred as partial payment toward the order. Compliance review processes triggered internal scrutiny from the supplier, particularly after communications revealed connections to entities based in China and inconsistencies in the declared purchasing structure. The transaction was ultimately halted after verification of the purported end user failed.

A secondary procurement attempt emerged in April 2024, involving an additional order for approximately 500 servers under a different Thailand-based corporate identity. This attempt also included signed end-user certifications asserting compliance with export regulations. That transaction likewise failed following further due diligence.

Evidence presented in the case includes internal communications and text messages between the defendants. These exchanges detail discussions surrounding the fabrication of corporate profiles, the use of intermediary entities, and strategies to obscure the involvement of China as the final destination. Messages also referenced the significant resale value of restricted AI chips within Chinese markets and included instructions to avoid explicit mention of China in communications to reduce detection risk.

The case reflects a broader enforcement focus on preventing the diversion of advanced computing technologies with dual-use applications. High-performance AI chips are considered critical infrastructure components due to their role in machine learning systems, military applications, surveillance platforms, and large-scale data processing environments.

The investigation was conducted by the Federal Bureau of Investigation, the Department of Commerce Bureau of Industry and Security, the Defense Criminal Investigative Service, and Homeland Security Investigations. These agencies coordinate enforcement of export control laws designed to protect sensitive U.S. technologies from unauthorized transfer to foreign adversaries.

Zheng was arrested on March 22, 2026, and appeared before a federal magistrate judge in the Northern District of California. Federal prosecutors have moved for his detention pending trial. Kelly and English surrendered to federal authorities on March 25, 2026, with initial appearances scheduled in their respective jurisdictions.

The charges include conspiracy to commit smuggling and violations of export control statutes. If proven, the conduct would represent a deliberate attempt to circumvent regulatory safeguards governing the international transfer of restricted technology.

The case is being prosecuted by Assistant U.S. Attorney Samir Kaushal and Trial Attorney Brett Ruff of the National Security Division’s Counterintelligence and Export Control Section.

The charges outlined in the criminal complaints constitute formal allegations. The defendants are presumed innocent unless and until proven guilty in a court of law.

---

---

---

---

---

---

---

---

---

---

---

🔥 NOW AVAILABLE! 🔥

‎👉 Eclipsera – Apple Music

---

---

---

---

---