OFAC and DOJ Resolve Sanctions and Export-Control Cases Against Extreme Networks

OFAC agreed to a $1,529,685 settlement with Extreme Networks, Inc. over nine apparent violations involving exports of networking equipment and services to Russian weapons manufacturer MMZA, which was blocked through its majority ownership by designated Almaz Antey. DOJ separately entered into a non-prosecution agreement requiring a $487,860.92 criminal fine and $487,860.92 forfeiture; OFAC will credit payment of the DOJ fine against its settlement. OFAC treated the conduct as voluntarily self-disclosed and egregious, while DOJ classified the disclosure as a ‘near miss’ because it was not timely under DOJ’s policy.