Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California
The Department of Justice (DOJ) has chosen not to prosecute the Universities Space Research Association (USRA) following the organization's self-disclosure of export control offenses by a former employee, Jonathan Soong. Soong was found guilty of violating U.S. export control laws by exporting sensitive software to a Chinese university on the Commerce Department’s Entity List. He has been sentenced to 20 months in prison.
Acting U.S. Attorney Patrick D. Robbins commented on the situation, noting the importance of USRA’s actions following the discovery of the violations. "What the company did next made all the difference in the Government’s decision not to prosecute it: the company took swift and proactive measures to disclose the employee’s wrongdoing, provide all known facts, and cooperate – and continue to cooperate – with the government’s investigation."
Sue J. Bai, head of the Justice Department’s National Security Division, remarked on the role of corporations in national security. "If we stay vigilant, all of us — including our citizens, small businesses, and large corporations — can play a critical role in protecting our country. A criminal who compromised our national security was brought to justice because his employer caught him and immediately turned him in."
Soong, employed by USRA as a program administrator, was responsible for ensuring compliance with export controls. He willfully exported U.S. Army-developed flight control software to Beihang University in Beijing, despite knowing the need for an export license due to its presence on the Entity List for involvement in military technologies. He used deceptive tactics, including an intermediary, to execute the export, and misappropriated funds by diverting payments to a personal account.
NASA inquiries into sales to Chinese purchasers initiated USRA's internal investigation, leading to Soong’s confession. USRA disclosed the violation to the DOJ, cooperated fully, and took corrective measures, leading to the DOJ's decision not to prosecute based on voluntary disclosure, cooperation, and remediation efforts.
This marks the second instance where the DOJ has exercised discretion under the NSD Enforcement Policy to decline prosecution under similar circumstances.
The investigation involved multiple agencies, including the Department of Commerce’s Bureau of Industry and Security, the Department of Defense’s Defense Criminal Investigative Service, and the FBI, among others. The case was prosecuted by Trial Attorney Rachel Craft of the National Security Division and Assistant U.S. Attorney Barbara Valliere.
