The Justice Department has decided not to prosecute the Universities Space Research Association (USRA) following the organization's self-disclosure of criminal violations of U.S. export control laws by a former employee, Jonathan Soong. Soong, who was involved in exporting U.S. Army-developed aviation software to a university in China listed on the Commerce Department's Entity List, was sentenced to 20 months in prison.
Acting U.S. Attorney Patrick D. Robbins for the Northern District of California commented on the situation, stating, "USRA discovered that one of its employees was funneling sensitive aeronautics software to a Beijing university in violation of export control laws and at risk to our national security. What the company did next made all the difference in the Government's decision not to prosecute it."
Sue J. Bai, head of the Justice Department's National Security Division, highlighted the company’s role in addressing the breach. She said, "A criminal who compromised our national security was brought to justice because his employer caught him and immediately turned him in. We decline to prosecute his employer and are ready to work together with such responsible corporate actors who are committed to joining us in this fight to protect our country from foreign adversaries."
Under a contract with NASA, USRA was responsible for licensing and distributing aeronautics-related and U.S. Army-owned software. Soong, employed as a program administrator, exported software to Beihang University in China, knowing that it required an export control license due to its presence on the Entity List. The university was known for its involvement in military technology development.
Following NASA's inquiries about software license sales, USRA launched an investigation, leading to Soong's confession and the subsequent self-disclosure to the National Security Division (NSD) by USRA. The organization has since taken steps to improve its internal controls and compliance programs while compensating the government for losses.
The Justice Department's decision was influenced by USRA's self-disclosure, cooperation with the investigation, and corrective actions. The decision aligns with the NSD Enforcement Policy, which generally favors non-prosecution agreements for companies that voluntarily disclose violations, cooperate fully, and remediate appropriately.
The investigation involved multiple agencies, including the Department of Commerce's Bureau of Industry and Security and the FBI. The case was prosecuted by Trial Attorney Rachel Craft and Assistant U.S. Attorney Barbara Valliere.