Imagine the world’s most advanced AI chips—designed to power cutting-edge innovations—quietly slipping past U.S. export controls, ending up in places they were never supposed to go. Not through high-tech hacking or espionage, but through a network of shell companies, supply chain loopholes, and international black markets.

That’s exactly what’s happening.

In this episode of Midweek Sitrep, host Jerry Fowler unpacks how fraudsters orchestrated a $390 million scheme to smuggle AI hardware, why U.S. export controls aren’t airtight, and what this means for businesses, national security, and the future of AI dominance.

Here’s what you’ll learn:

• How U.S. export controls work—and why they struggle to keep AI tech secure
• The tactics smugglers use to reroute restricted chips across borders
• Why businesses face serious compliance risks (and how to avoid multi-million dollar fines)
• What’s next—will enforcement actions increase under the Trump Administration?

As always, Jerry covers this week’s top national security stories you need to know.

This episode doesn’t just explain the problem—it explores the consequences. If you work in business, AI, national security, export controls, compliance, or tech policy, this is a must-listen to understand the future of AI regulations and global competition.

The AI arms race isn’t just about innovation—it’s about control.

Listen now and stay ahead of the threats.

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Everything is National Security

About the Host: Jerry Fowler

Jerry Fowler is an attorney and policy professional specializing in the intersection of business, law, and national security. He works with companies and their counsel to meet and exceed compliance obligations while navigating the complex national security regulatory landscape.

Jerry leads the CFIUS and National Security practice at a global risk consultancy where he applies his experience in export controls, sanctions, and U.S. national security regulatory regimes to advise clients on evaluating and mitigating global trade risk.

His experience spans over a decade across many capacities in state and federal government, including as a West Virginia Assistant Attorney General, federal attorney, and as a contract member of the U.S. Department of Defense’s CFIUS team. He also serves in the Army National Guard as a Judge Advocate (Army lawyer).

He received his Master of Laws degree in National Security and Cybersecurity Law from the George Washington University Law School and his Juris Doctor degree from the West Virginia University College of Law. He also obtained his Master of Business Administration degree at the University of Florida, Warrington College of Business and his Bachelor of Arts degree in Sociology from Concord University. He holds an Artificial Intelligence Governance Professional (AIGP) certification and is licensed to practice law in the District of Columbia and West Virginia.

Disclaimers:
The information provided in this podcast is for general informational purposes only and does not constitute legal, financial, or professional advice. Listeners should consult with a qualified professional before making any decisions based on the content discussed.

The views and opinions expressed in this podcast are those of the host and guests and do not necessarily reflect the official policy or position of any government agency, the U.S. military, or any employer, organization, or entity with which we are affiliated.

Mention of any company, product, or service in this podcast does not constitute an endorsement or recommendation. Any references are for informational purposes only.

This podcast does not disclose any classified, proprietary, or confidential information. Discussions are based on publicly available information and personal expertise.