Episode 18 Summary – The $4 Million Wake-Up Call

In this episode, host Tabetha Baume warns cleared contractors about a recent DOJ indictment involving a licensed U.S. distributor who helped smuggle $3.8 million in NVIDIA AI chips to China. She explains how legitimate businesses exploited the system through fake contracts and shell companies, proving that even small contractors buying basic IT equipment could unknowingly become part of an export control violation.

Tabetha breaks down common supply chain vulnerabilities—price-driven purchasing, unverified vendors, and poor documentation—and how these expose companies to foreign infiltration. She introduces the Purchase Security Awareness Starter Kit, a low-cost tool to help small cleared contractors strengthen vendor vetting, meet NISPOM requirements, and protect their facility clearances before issues arise.