Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: Atlanta man arrested for conspiring to smuggle AI technology to China – WABE in Simple Termsand what it means for users..
An Atlanta resident and two other men have been charged with export control violations and conspiring to commit smuggling of artificial intelligence technology to China.
The United States Attorney’s Office of Northern Georgia announced Wednesday that Tommy Shad English of Atlanta, Stanley Yi Zheng of Hong Kong and Matthew Kelly of Hopewell Junction, New York, allegedly sought millions of dollars’ worth of export-controlled computer chips from a California-based computer hardware company (referred to in the complaint as “Company-1”) for illegal shipment to China through Thailand.
China is under an embargo in the United States, with American companies restricted from selling to businesses or end users headquartered there.
“The smuggling of advanced technology like these computer chips represents a direct threat to U.S. national security,” said Peter Ellis, acting special agent in charge of FBI Georgia, in the release. “The individuals charged in this case attempted to bypass U.S. export laws to send sensitive technology to adversaries. The FBI will continue working with our partners to prevent the illegal diversion of critical technologies and hold those responsible accountable.”
How was China involved in the alleged crimes?
According to authorities, around May 2023, the three men began conspiring together to obtain computer servers containing export-controlled computer chips. To achieve this, the trio used the names of Thailand-based companies as purported purchasers of the computer servers to divert the chip’s delivery to China.
In October 2023, English, posing as a representative 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 January 2024, after transferring over $20 million to Company-1 as a partial payment, authorities say English asked for Yi Zheng and Kelly to be added to an email thread discussing the October order. Company-1 representatives then began to express suspicions, noting 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.
One month later, the California-based manufacturer of the computer chips (“Company-2”) conducted a review of the order and was unable to verify the end user in Thailand. The purchase failed to be completed.
In April 2024, English, claiming to be the representative of a second Thailand-based company, sought to order another 500 computer servers that contained an export-controlled computer chip from Company-1. This transaction was also unsuccessful.
Text messages later obtained by authorities during their investigation showed aspects of the conspiracy, including the defendants discussing “fake” corporate niceties to help complete the computer chip purchases, the value of the computer chips in China and the recruitment of others to participate in the scheme, among other factors.
“They just need more details about your company, customers, revenue, etc.,” a message from Kelly reads. “I know you mention you [English] are better than CDW but they have a nice website, company decks, quarterly earning reports, etc that are all public information.”
In addition, in March 2024, Kelly sent Zheng a draft solicitation message to send to others.
“[I am] [c]urrently working on distributing GPU systems with [Company-2] chips for supercomputing[.] . . . We . . . have a few customers in China but it’s a banned country for distribution,” the message reads. “It’s a lucrative business right now – millions of dollars in profits per order – so we are looking for partners. One you can find customers that need GPUs for their supercomputer solutions or two they act as a pass through partner for customers in China. Let me know if you are interested in discussing?”
What is next for the defendants?
Criminal complaints against the trio were issued in the Northern District of Georgia on March 20, 2026, with Yi Zheng arrested on March 22 and Kelly and English surrendering themselves to authorities on March 25.
Assistant U.S. Attorney Samir Kaushal of the United States Attorney’s Office for the Northern District of Georgia and trial attorney Brett Ruff of the National Security Division’s Counterintelligence and Export Control Section will serve as prosecutors on the case.
According to the U.S. Attorney’s Office, the case is being investigated by the Department of Commerce’s Bureau of Industry & Security, the Defense Criminal Investigative Service (DCIS) , Homeland Security Investigations and the Federal Bureau of Investigation.
“Advanced computing technologies, like Graphics Processing Units (GPUs), play a critical role in military artificial intelligence and national defense capabilities,” DCIS Special Agent-in-Charge Jason J. Sargenski said in the release.
“When individuals attempt to illegally acquire or export this technology for profit, they are putting national security and our warfighters at risk. DCIS will continue working with our U.S. and international partners to identify these networks, disrupt their operations, and hold those responsible accountable.”