Justice Department Won't Prosecute U.S. Tech Firm Over Sales to Russian Missile Maker; Agreement Says Company Disclosed Days Before a News Report

The Justice Department said Tuesday it will not prosecute Extreme Networks, a North Carolina-based networking company, over sales of equipment and services to a Russian weapons maker, in the first "near miss" non-prosecution agreement under the department's 2026 corporate enforcement policy.

Extreme Networks will pay a total criminal penalty of $975,721.84: forfeiture of $487,860.92 in proceeds and a criminal fine of the same amount, according to the department. The company will also resolve a parallel administrative action with the Treasury Department's Office of Foreign Assets Control.

According to the National Security Division, Extreme's former Russian subsidiary, Extreme Networks Rus LLC, processed and fulfilled 11 purchase orders between around March 2018 and March 2022 for Moscow Machinery Building Plant Avangard, known as MMZA. The department describes MMZA as "a primary producer of the S-300 and S-400 anti-aircraft missile systems used by the Russian army." Its parent, Almaz-Antey, was placed under U.S. sanctions in July 2014.

Why It Is a Non-Prosecution Agreement

Under the policy, a company that voluntarily discloses misconduct, cooperates and fixes the problem can receive a declination, meaning no charges and no agreement. The department said Extreme did not qualify because its disclosure "occurred under imminent threat of disclosure by a news publication."

The agreement, dated Oct. 20, 2026, lays out the timeline. Extreme received a whistleblower complaint about its Russian unit in April 2022 and began an internal investigation. In October 2022, "a news outlet contacted Extreme regarding possible wrongdoings at EN-Russia and explicitly identified EN-Russia's business with MMZA." The company then disclosed to the National Security Division in a written self-disclosure "which preceded the publication of the news article reported by the investigative journalist by a matter of days," the agreement says. It does not name the outlet.

The department said the company still cooperated fully, ended its contract with the distributor used for the sales, improved screening, hired more compliance staff and added checks for mergers and acquisitions.

A Front Company for 'Country Houses'

The statement of facts attached to the agreement says MMZA bought through a Russian company called Dmitrovskiy Experimental Mechanical Plant, or "DEMZ." Russia-based employees described DEMZ in internal records as working on "components for Metalworking construction of country houses," but the document says "there was little evidence to support that DEMZ was operating in that fashion."

The document describes how the MMZA email domain, mmza.ru, appeared in orders. In January 2020, after a distributor asked how to answer U.S. compliance staff about the domain, one Russia-based employee wrote to another: "Who sent him first and how did it end up in the DA?! It can't be left here and apparently the DA needs to be redone." DA refers to a discount approval form. The order was ultimately approved, according to the document.

In October 2020, after the distributor was asked for DEMZ's website, the purchase order was changed to a different email domain, but MMZA's address stayed on it, the statement of facts says. It adds that the company's U.S.-based trade compliance group "failed to appropriately identify the various red flags."

What the Company Agreed To

The agreement runs for three years. Extreme must keep cooperating with investigators, maintain its compliance program and report to the government on it; the department decided an independent compliance monitor was not necessary. If the department finds a breach, the agreement allows it to prosecute the company. The department said Extreme stopped all business in Russia after the February 2022 invasion of Ukraine and closed its Moscow office.

The FBI's Charlotte Field Office, the Commerce Department's Bureau of Industry and Security and Homeland Security Investigations investigated. Individual Russia-based employees are not named in the public documents, and the release does not say whether any individual has been charged.

Sources: Justice Department press release (Oct. 27, 2026): https://www.justice.gov/opa/pr/national-security-division-announces-first-near-miss-non-prosecution-agreement-under ; Non-prosecution agreement and statement of facts (Oct. 20, 2026): https://www.justice.gov/opa/media/1468856/dl?inline ; Justice Department Corporate Enforcement and Voluntary Self-Disclosure Policy: https://www.justice.gov/dag/media/1430731/dl?inline