Tag: Red Flags Rising

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Red Flags Rising

Red Flags Rising: S01 E38: “Fallen Chips” – GIR’s Estelle Atkinson on her Three-Part Report

Mike Huneke and Brent Carlson welcome Estelle Atkinson, a reporter with Global Investigations Review (GIR), to speak about her recent three-part series, “Fallen Chips,” published on January 26, 27, and 28, 2026 (linked in the show notes). They discuss how Estelle learned of the U.S. government investigation of Zenith Semiconductor in Chandler, Arizona (01:14); that company’s background (06:03); when employees started to realize that things were not quite right at the company and how that led to employees going to the FBI (08:19); how Estelle got to know the employees and why they were willing to help her with her story (10:30); how her experience illustrates more broadly the challenge companies have in responding to whistleblower reports or allegations (11:48); how diversion starts close to home, and is not always in some exotic “offshore” location (15:31); how U.S. administration policies to promote the export of the U.S. AI “stack” are not without controls or national security considerations (15:58); why success under America’s AI Action Plan and the American AI Export initiative will depend on effective, risk-based export controls compliance programs (16:21); the role of media in American life (19:14); why the standard PR or IR “playbook” of asserting “full compliance with the law” creates risks if companies aren’t expressly incorporating the full definition of “knowledge,” to include “an awareness of a high probability,” into export controls compliance (20:14); and what GIR readers can expect to see (or read) next from Estelle (20:49). Mike and Brent conclude with yet another installment of Brent Carlson’s “Managing Up” (22:39).

Resources:

GIR 

Fallen Chips Part I: Inside the FBI Raid that Rocked an Arizona Chip Start-Up (Jan. 26, 2026)

Fallen Chips Part II: Silicon Secrets and the Risks Hiding in Plain Sight (Jan. 27, 2026)

Fallen Chips Part III: The Fault Lines of the US-China Tech War (Jan. 28, 2026)

More about:

Estelle: https://globalinvestigationsreview.com/authors/estelle-atkinson

Contact Estelle: estelle.atkinson@globalinvestigationsreview.com

Contact Brent: brent@redflagsrising.com

Contact Mike: michael.huneke@morganlewis.com

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Red Flags Rising

Red Flags Rising: S01 E37: Carole Basri on Subsidizing World Peace: The U.S. Experiment, and the Dynamic Relationship between National Security & Corporate Compliance

Back in January 2024, Mike and Brent had the good fortune to meet Carole Basri at an event at NYU Law School. On this episode of Red Flags Rising, they welcome her as a guest to talk about her specialties: national security, geopolitics, and corporate compliance. They specifically discuss Carole’s extensive professional background (00:59), a new treatise on National Security Law that Carole, Mike, and Brent are writing for the Practising Law Institute (PLI) (04:00), an upcoming event co-hosted by the New York State Bar Association’s International Section, Corporate Compliance Committee and Morgan Lewis, to which the new Assistant Secretary for Export Enforcement David Peters is an invited keynote speaker (08:18), why public enforcement officials remarks are relevant under U.S. export controls and other probability-based (i.e., “red flags”-driven) national security laws (09:26), how the U.S. Foreign Corrupt Practices Act (FCPA) was not only an example of that but also was really a child of an era where economic interdependency required a level of transparency and clean commerce to continue (12:00), and the relationship between Bretton Woods, Belt and Road, and Mike’s favorite book, Tales of an Economic Hitman, and what could be viewed with hindsight as effectively a U.S. policy decision to trade its own economic security for decades of (relative) world peace, increased global productivity, and increased living standards (16:52). Brent then closes out the discussion with the latest installment of his “Managing Up” segment (21:57), after which Mike makes some (further) book recommendations based on the discussion for those interested in further exploring some of the idea and concepts covered during the discussion:

More about Carole

Contact Brent: brent@redflagsrising.com

Contact Mike: michael.huneke@morganlewis.com

Interested in learning more about the March 10, 2026, event? Contact Mike & Brent at the email addresses above.

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The PfBCon Podcast

The PfBCon Podcast: Leveraging Podcasting for Building Personal Brands with Brent Carlson and Mike Huneke

Brent Carlson and Mike Huneke from the Red Flags Rising podcast discuss their journey in building personal brands through podcasting.

Brent, a Principal and Chief Solutions Officer at Red Flags Rising Solutions, LLC, and Mike, a Partner at Morgan, Lewis & Bockius, share insights on using podcasting to create authentic connections, expand professional networks, and address timely industry topics. They emphasize the importance of quality, consistency, and having a genuine passion for your subject matter. The discussion also covers practical tips on choosing the right equipment, the benefits of LinkedIn for promotion, and the value of having a unique style that resonates with your audience. The episode underscores the impact of podcasting on establishing professional credibility and on driving business growth.

Key highlights:

  • The Power of Podcasting for Personal Branding
  • Building Connections and Community
  • Starting the Red Flags Rising Podcast
  • Creating Engaging and Practical Content
  • Promoting Your Podcast Effectively
  • Investing in Quality Equipment
  • Using Podcasts for Business Development

Resources:

Follow Brent and Mike on LinkedIn:

Brent Carlson

Mike Huneke

Follow Red Flags Rising on:

Website

Spotify

RSS. Com

YouTube

Compliance Podcast Network

Apple Podcast

Listen Notes

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Red Flags Rising

Red Flags Rising: S01 E36: How to Prepare for 2026 – The Fraud Diamond Framework (SM) Applied

Mike Huneke and Brent Carlson return for the new year with a refresher on The Fraud Diamond Framework (SM) introduced in Episode 34 and an explanation of how it would apply in practice as trade compliance professionals try to expect the unexpected in 2026. They discuss the importance of designing and implementing “compliance backstops” as geopolitical guardrails (01:47), how Stoic philosophy and the good work of Mo Bunnell (CEO and Founder of Bunnell Idea Group, author of Give to Grow) help build resiliency (03:40), review The Fraud Diamond Framework(SM) (05:57), describe how the framework can help trade compliance personnel to make and defend triage decisions (10:59), the implications of many trade compliance programs reaching a point in their evolution where they need to be able to demonstrate true integrity and effectiveness (13:45), the new 25% tariffs on certain semiconductors (14:38), and notable economic sanctions enforcement decisions related to lawyers’ advice or lawyers themselves (15:56). They conclude with Brent’s first Managing Up of 2026 (21:04).

Resources:

Brent’s email: brent@redflagsrising.com

Mike’s email: michael.huneke@morganlewis.com

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Red Flags Rising

Red Flags Rising: S01 E12 – End-Use and End-User Catch-Alls

In a timely episode discussing end-use and end-user controls and how the full definition of “knowledge”–to include “an awareness of a high probability”–runs through those controls, Mike starts by summarizing key developments on May 13, 2025, right before publication, specifically issuance that day of three key guidance documents by the U.S. Bureau of Industry & Security (BIS) on exactly these topics in the context of advanced computing integrated circuits, Huawei, Infrastructure as a Service (IaaS), and data centers (00:00). Mike and Brent then discuss the end-use and end-user catch-all provisions and why they are often overlooked (02:31), how those catch-all provisions apply to real-world scenarios (05:02), why the Entity List is best thought of as a “backstop” to the end-use and end-user provisions (08:21), what to do if a customer or counterparty ends up on the Entity List (10:34), the collective knowledge doctrine and its implications (15:12), how and where to draw the line in risk-based due diligence of distributors and resellers (16:45), the pros and cons of raising an advice of counsel defense (18:49), how boards of directors can best fulfill their duty of oversight (21:11), and the importance of periodic risk assessments that include the potential risks under the “high probability” standard (23:43). Mike and Brent then conclude with Brent’s recurring segment, “Managing Up” (26:48).

Resources:

The Three May 13, 2025, BIS Guidance Documents Related to Advanced Computing Integrated Circuits:

1. BIS Policy Statement

2. Industry Guidance

3. Guidance on General Prohibition 10

“The Blind Men and the Elephant”

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E05 – The Knowledge “Glass Onion” for U.S. Export Controls

Mike & Brent update listeners on the America First Trade Policy Section 4(c) Report Executive Summary (01:05) before previewing their forthcoming “Glass Onion” article in WorldECR magazine about the various layers of the “knowledge” standard under the U.S. Export Administration Regulations (03:18), including “actual knowledge” (07:23), “reason to know” (08:44), and “awareness of a high probability” (09:39). Mike & Brent then discuss relevant guidance from the U.S. Bureau of Industry & Security (12:44), parallels to U.S. Foreign Corrupt Practices Act enforcement (13:30), how the “high probability” standard is becoming the new national security enforcement paradigm (14:56), and key takeaways for trade compliance professionals (16:49) before wrapping up with yet another edition of Brent Carlson’s “Managing Up” segment (19:07).

Mike & Brent’s new “Glass Onion” article (subscription required): [link forthcoming!]

Resources:

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E04 – FRESH LOOKS: Export Controls Penalties

In Episode 4, Mike and Brent revisit another of their prior “Fresh Looks” posts on the NYU Law School’s Program on Corporate Compliance & Enforcement (“PCCE”) blog. This one concerns export control penalties and what to make of recent statements attributed to Commerce Secretary Howard Lutnick and Undersecretary Jeffrey Kessler. Mike and Brent discuss the context for the original November 14, 2023, post (00:30), how historical FCPA penalties compared to U.S. export controls penalties prior to the April 2023 Seagate resolution (01:26), what current official statements and enforcement trends mean for c-suites and boards (02:59), a recent Export Compliance Daily article regarding internal BIS discussions about enforcement priorities (04:57), how to prepare (07:23) for high probability-based enforcement (08:52), the role of the DOJ’s National Security Division (11:01), and conclude with Brent Carlson’s “Managing Up” segment (12:30).

Resources:

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E03 – FRESH LOOKS: Loopholes and Liability Pitfalls

Mike & Brent revisit Brent’s original August 25, 2023, “Fresh Looks” post, “When Loopholes Create Liability Pitfalls: A Fresh Look at Export Controls.” They discuss what inspired Brent to write the article (00:40), the Inspur Group controversy (05:38), what legacy perspectives were missing about the compliance and enforcement risks (08:25), and parallels to the U.S. Foreign Corrupt Practices Act enforcement (12:16), why Mike initially hated Brent’s article (13:19), how the risks that Brent highlighted in August 2023 are still relevant today (17:29), the key takeaways for trade compliance professionals (18:29), and the return by popular demand of Brent Carlson’s “Managing Up” segment on what trade compliance should explain to stakeholders, management, and boards about the risks identified in Brent’s article (20:41).

Check out Episode 2 for more on Secretary Lutnick’s March 18, 2025, remarks at the BIS Update conference (see the show notes for additional reporting)

Resources:

Brent’s NYU PCCE Post

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E02 – Lutnick: “We Have Had Enough”

Mike and Brent discuss remarks at the Bureau of Industry & Security’s “Update” Conference that started today in Washington, DC (00:00), specifically Secretary of Commerce Howard Lutnick’s statement that he would take a hard line against China (02:18), including a “dramatic increase” in enforcement (04:01) and fines (13:45). In the returning segment “Brent Carlson’s Managing-Up,” Brent identifies key takeaways for trade compliance professionals to share with stakeholders, management, and boards (15:31).

Resources:

The New York Times’ initial report by Ana Swanson about Secretary Lutnick’s Statements 

Ian Cohen’s Subsequent Reporting for Export Compliance Daily 

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E01 – DeepSeek’s Deep Impact on Export Controls

In the launch of Red Flags Rising, Mike and Brent explain the concept and purpose of the pod (00:00), a recent report by Gregory C. Allen of the Center for Strategic and International Studies on “DeepSeek, Huawei, Export Controls, and the Future of the U.S.-China AI Race” (linked below) (01:43), the report’s emphasis on backing strong regulations with strong enforcement (04:49) and the recently rediscovered “high probability” knowledge standard under the U.S. Export Administration Regulations (06:50), whether and how the Commerce Department’s enforcement capability is impacted by recent policy and personnel decisions (11:00), parallels to the U.S. Foreign Corrupt Practices Act (13:54), and conclude with the first-ever “Brent Carlson on Managing Up” segment, providing practical tips on what trade compliance professionals can do to explain to stakeholders, the c-suite, and boards the value proposition of export controls compliance today (19:43).

Resources:

Gregory C. Allen’s Report

Mike & Brent’s “Fresh Looks” Series

Brent LinkedIn

Mike LinkedIn