DOJ enters first near-miss NPA with Extreme Networks for $975,721.84

The US Department of Justice (DOJ) entered its first near-miss non-prosecution agreement under its department-wide 2026 Corporate Enforcement and Voluntary Self-Disclosure Policy with Extreme Networks, Inc. on 27 October 2026, according to its announcement. Extreme agreed to pay a $975,721.84 criminal penalty to resolve the DOJ’s investigation into sanctions and export-control offences involving sales to Moscow Machinery Building Plant Avangard (MMZA), a Russian weapons manufacturer owned by JSC Concern Almaz-Antey. The penalty comprises a $487,860.92 forfeiture of proceeds and an equal criminal fine.

The compliance distinction is timing. Extreme’s disclosure to the DOJ’s National Security Division was not timely because it occurred under an imminent threat of disclosure by a news publication. The company nevertheless qualified as a “Near Miss” Voluntary Self-Disclosure because it fully cooperated and timely and appropriately remediated the misconduct. The case did not qualify for a declination of prosecution, but the DOJ agreed to an NPA in view of that cooperation, remediation and the absence of aggravating circumstances.

What the DOJ investigation covered

Between approximately March 2018 and March 2022, Extreme, through its then-Russia-based subsidiary Extreme Networks Rus LLC, processed and fulfilled 11 purchase orders for networking equipment and services to MMZA without the required licence or authorisation from the Office of Foreign Assets Control (OFAC). Almaz-Antey had been added to OFAC’s Specially Designated Nationals and Blocked Persons List in July 2014.

The DOJ says certain Russia-based Extreme employees concealed MMZA’s identity from the company’s global trade compliance group. That caused Extreme to file false electronic export information through the Automated Export System and to smuggle goods from the United States. MMZA was a primary producer of the S-300 and S-400 anti-aircraft missile systems used by the Russian army.

Extreme earned approximately $487,860.92 in revenue from the sales. The DOJ says the conduct deprived the US government of its ability to enforce sanctions and export controls intended to protect national security and economic interests.

Remediation and parallel OFAC action

Extreme provided relevant facts and documents, made employees available for interviews and terminated its contract with the third-party distributor used to facilitate the sales. It also improved screening procedures, hired additional compliance personnel and implemented diligence procedures for mergers and acquisitions.

Extreme will separately resolve a parallel administrative action by Treasury’s OFAC. Compliance Week reported on 3 November that penalties across the DOJ and OFAC matters exceeded $2.5m. The DOJ announcement specifies only its own $975,721.84 criminal penalty, so the reported total is not a revision to that amount.

The FBI’s Charlotte Field Office, the Commerce Department’s Bureau of Industry and Security and Homeland Security Investigations investigated the case. In Atlas’s view, the case makes disclosure timing the key control: full cooperation and remediation secured an NPA, but did not produce a declination or remove the criminal penalty after disclosure was late.