Three individuals, Stanley Yi Zheng, Matthew Kelly, and Tommy Shad English have been charged with conspiring to commit smuggling and export control violations. The three defendants are alleged to have sought millions of dollars’ worth of export-controlled computer chips from a California-based computer hardware company for illegal shipment to China through Thailand. “Zheng, Kelly, and English allegedly conspired to sell millions of dollars’ worth of American-made AI computer chips to buyers in China, in clear violation of U.S. export controls,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division. “As our foreign adversaries escalate their efforts to dominate the field of artificial intelligence, we are seeing them employ increasingly brazen schemes to illegally acquire valuable U.S. technology. Enforcing export controls is critical to our work safeguarding America’s economic and national security, and the FBI will continue working with our partners to protect our nation’s innovation and hold accountable those seeking to profit by supplying hostile nation states.”
According to the criminal complaints and other information presented in court: In or about May 2023, Zheng, Kelly, and English began conspiring together to obtain computer servers with export-controlled computer chips from a California-based computer hardware company (Company-1) and ship them to Thailand with an ultimate destination of China, in violation of U.S. law. In doing so, the three defendants used the names of Thailand-based companies as the purported purchasers of the computer servers when in fact the co-conspirators intended for the U.S.-origin AI chips to be diverted to China. In Oct. 2023, English, purporting to act on behalf of a Thailand-based company, ordered 750 computer servers for approximately $170 million from Company-1. Of the 750 computer servers, 600 contained a computer chip that was controlled on the U.S. Commerce Control List and required a license for export to China. In placing that order, English signed an “Advanced Computing Certification,” certifying that the computer servers were not destined for China or any other country subject to heightened export requirements.
In Jan. 2024, English transferred over $20 million to Company-1 as partial payment for the Oct. 2023 order. In Jan. 2024, when discussing via email an upcoming compliance review for the Oct. 2023 order, English asked Company-1 to add Zheng and Kelly to the email thread, which prompted a response from Company-1 noting, among other things, that Zheng’s company was based in China and that it was “odd” that no one from the Thailand-based company was in the list of carbon copy recipients. Company-1 also commented that “China is an embargoed country restricted by the US government. US companies are restricted from selling to businesses or end users headquartered in China.” In early Feb. 2024, additional review of the Oct. 2023 order was conducted by the California-based manufacturer of the computer chips that would be inside 600 of the servers English had ordered (Company-2). Company-2’s efforts to verify the end user of the computer chips in Thailand were unsuccessful. Ultimately, the Oct. 2023 purchase was not completed.
While the Oct. 2023 deal lost momentum, in April 2024, English, purporting to act on behalf of a second Thailand-based company, sought to order from Company-1 another 500 computer servers that contained an export-controlled computer chip. In doing so, English signed an End User Certification stating that the Thailand-based company was the end user for the purchase. This deal, like the Oct. 2023 deal, ultimately was unsuccessful.
Stanley Yi Zheng, 56, of Hong Kong, China, was arrested on March 22, 2026, and appeared before U.S. Magistrate Judge Lisa J. Cisneros, of the Northern District of California, on March 23, 2026, for his initial appearance. The Government has moved for Zheng to be remanded to federal custody and held without bail pending trial.
Matthew Kelly, 49, of Hopewell Junction, New York, and Tommy Shad English, 53, of Atlanta, Georgia, surrendered to federal authorities on March 25, 2026. Their initial appearances will be held in the District of New Jersey and Northern District of Georgia .
Jeffrey Newman, JD, MBA, is a whistleblower lawyer whose firm represents healthcare fraud whistleblowers and whistleblowers reporting violations of export controls, tariff evasion, money laundering, and other WB cases. Mr. Newman and his staff also represent many physician whistleblowers in healthcare fraud cases. Whistleblower laws in the U.S. allow individuals with information about export control violations or tariff fraud to report it under the False Claims Act. The Firm’s website is www.JeffNewmanLaw.com. Attorney Newman can be reached at Jeff@Jeffnewmanlaw.com or at 978-880-4758. For other blogs, see: http://JeffNewmanLaw.com
