The U.S. Department of Justice said its agreement with Extreme Networks is its first non-prosecution agreement in a “near-miss” case under the department’s 2026 Corporate Enforcement and Voluntary Self-Disclosure Policy. Extreme agreed to forfeit $487,860.92 and pay a $487,860.92 criminal fine, for total criminal penalties of $975,721.84.

DOJ said the case concerned 11 orders processed between about March 2018 and March 2022 by the company’s Russia-based subsidiary for networking equipment and services to Moscow Machinery Building Plant Avangard, without required OFAC authorization. DOJ said some employees concealed the buyer’s identity from the company’s trade compliance group, leading to false export information and smuggling. The department said the company’s disclosure was not timely, but it fully cooperated and appropriately remediated.

Why it matters

  • The agreement is DOJ’s first “near-miss” resolution under its 2026 corporate policy.
  • The case highlights the importance of end-user checks and effective trade-compliance controls.