Alfredo G. Fernández

Advised an AI company on U.S. export control and sanctions due diligence for a proposed ~$40 million acquisition of a GPU-equipped data center operation in Southeast Asia. Prepared a regulatory compliance memorandum analyzing the transaction structure, the parties involved, and U.S. regulatory concerns under BIS export controls and the potential future implications of pending legislation such as the Remote Access Security Act. Identified critical risk factors during diligence, including criminal fraud charges against senior executives of the target entities in the host jurisdiction for allegedly diverting AI chips to China in circumvention of U.S. export controls, as well as an unresolved relationship between the nominated end-user and a sanctioned Chinese technology conglomerate. Advised on restructuring the deal to mitigate successor liability for potential EAR violations. 

Designed and implemented a comprehensive U.S. export compliance program for a rapidly growing AI infrastructure company that had been operating without a formal framework with products and services subject to the Export Administration Regulations. Conducted an initial self-assessment of all historical export transactions involving controlled GPU hardware, ultimately concluding that no violations had occurred under the applicable regulations. Developed a detailed end-user screening checklist incorporating BIS Red Flag Guidance, Know Your Customer standards, and industry-specific transactional indicators for advanced computing integrated circuits. Drafted enhanced End-Use Statement forms, registered the company with BIS's SNAP-R electronic licensing system, and advised on the purchase and deployment of a six-figure global trade compliance screening platform. Provided calibrated export controls training for executives and operational staff, and established escalation protocols for red flag resolution.

Provided ongoing strategic counsel to a U.S. AI infrastructure company navigating the rapidly shifting landscape of export controls on advanced computing hardware, including GPUs subject to heightened controls under the Export Administration Regulations. Analyzed the legal implications of the January 2025 worldwide licensing regulation (“AI Diffusion Rule”), its subsequent rescission, and the regulatory uncertainty created by the absence of a formal replacement regulation. Prepared a detailed legal memorandum assessing the viability of a new licensing pathway for GPU exports to China under specific eligibility criteria and impacts of new tariffs on semiconductor imports.  Monitored and advised on proposed legislation including the Chip Security Act, the Remote Access Security Act and the MATCH Act, assessing their potential impact on the client's global operations, deal pipeline and future impacts to long-term agreements.

Represented a U.S. AI infrastructure company after federal authorities detained a shipment of high-performance NVIDIA GPUs valued at over $1.5 million based on concerns about potential diversion to prohibited end users in Asia. Served as lead outside counsel interfacing with the BIS Office of Export Enforcement, responding to multiple rounds of investigative inquiries, and filing a formal export license application and petition for release of the detained goods. Drafted formal correspondence to senior BIS officials requesting written confirmation that the client was not a target of the investigation and challenging the prolonged detention as inconsistent with the Bureau's published guiding principles. Managed multi-wave document productions and e-discovery in a voluntary response to the government’s Requests for Information.  Simultaneously advised the client on managing its relationship with a major OEM whose own regulatory compliance issues had contributed to the detention, including counseling on responding to the OEM's attempts to shift responsibility. The matter remains ongoing with continued cooperation with investigators and document productions.