Extreme Networks Faces $1,529,685 Fine in Separate OFAC Settlement

Key Facts

The U.S. Treasury Department, through the Office of Foreign Assets Control (OFAC), announced an administrative settlement of $1,529,685 with Extreme Networks on October 27 over exports to a Russian plant. In a separate action, the Justice Department entered into a non-prosecution agreement with the company that includes a criminal fine and forfeiture of proceeds, totaling $975,721.84. The figures therefore reflect separate legal tracks and do not represent a single settlement amount. The Justice Department said the agreement concerns sanctions and export-control offenses. OFAC described the apparent violations as egregious and said the company voluntarily disclosed them.

According to the Justice Department, the company, through its then-Russian subsidiary, carried out 11 purchase orders for network equipment and services to MMZA without the license or authorization required by OFAC. The department said MMZA was a key producer of the S-300 and S-400 air-defense systems. In a separate account of the facts, OFAC said the company exported network equipment and related services to the plant on 9 occasions between September 2018 and March 2022. It said the plant was prohibited under law and majority-owned by Almaz-Antey, which is on the sanctions list. The two counts cover different scopes of activity: 11 purchase orders in the Justice Department’s account and 9 export occasions in OFAC’s statement.

The Justice Department said company employees in Russia concealed MMZA’s identity from the global trade compliance group. This led, according to the department, to false electronic export information being filed and goods being smuggled from the United States. The department linked the concealment of the end user’s identity to the orders passing through without the license it said was required. The information in the Justice Department’s statement did not specify how many employees were involved or their roles. Both actions concerned exports of network equipment and services to the Russian plant, but each government agency provided its own legal characterization and count of the facts.

Under the non-prosecution agreement, the company will forfeit $487,860.92 in proceeds from sanctions and export-control violations and pay a criminal fine in the same amount. The total criminal penalty is $975,721.84, according to the Justice Department. In the separate OFAC track, the administrative settlement was $1,529,685. The Justice Department said the company terminated the third-party distributor contract it had used to facilitate sales, strengthened screening procedures and appointed additional compliance staff. It added that the company introduced due diligence procedures for mergers and acquisitions.

The Justice Department offices decided not to require an independent compliance monitor, citing remediation measures, the state of the company’s compliance program and its commitment to report on the program. The department said in the agreement that “it is not necessary to require the appointment of an independent compliance monitor.” On the company’s business, Extreme Networks reported in August that fiscal 2026 revenue rose 13% year over year. It said the fourth quarter marked its sixth consecutive quarter of double-digit growth. The fiscal year ended on June 30, 2026, according to the company’s results statement.