On May 22, 2024, the Department of Justice’s National Security Division (“NSD”) announced its first declination of prosecution for a company under the voluntary self-disclosure program established by the National Security Division Enforcement Policy for Business Organizations (“NSD Enforcement Policy”). An individual who worked for a United States-based biochemical company, along with his co-conspirator, each pleaded guilty to one count of wire fraud conspiracy for their roles in a scheme to fraudulently obtain deeply discounted products from the company to then export those products to China using falsified export documents. The company promptly disclosed the suspicious activity and complied with the NSD Enforcement Policy, which creates a presumption for companies to receive non-prosecution agreements when they (1) voluntarily disclose to NSD potentially criminal violations arising out of or relating to the enforcement of export control or sanctions laws; (2) fully cooperate; and (3) timely and appropriately remediate.
