"In April, Justice Department officials issued a letter and press release announcing that it was declining to prosecute the Universities Space Research Association after an employee illegally sold sensitive aviation software developed by the US military to a Chinese university. The letter, addressed to USRA lawyer Clark Kent Ervin, praised the company's "exceptional and proactive cooperation," including swiftly disclosing the wrongdoing, improving internal controls, and firing Jonathan Soong, the employee."
"When an organization like USRA finds potentially illegal conduct from one of its employees, it has a choice. It could tell the Justice Department - and potentially face years of legal headaches and bad publicity as the government does its own investigation. Or it could handle things internally, blame individual bad apples, and keep quiet while hoping the government doesn't notice before the statute of limitations expires."
"Ervin told Business Insider that USRA's management "fully understood the perils" of disclosing criminal activity to the Justice Department, but didn't hesitate to do so. "We recommended that USRA voluntarily self-disclose it, which the company properly did," said Ervin, an attorney at Squire Patton Boggs. "There was no hesitancy whatsoever about it.""
Justice Department officials under the Trump administration signaled reluctance to prosecute corporations, yet declination letters remained rare. The DOJ declined to prosecute the Universities Space Research Association after an employee sold sensitive aviation software developed by the US military to a Chinese university. USRA voluntarily self-disclosed the misconduct, improved internal controls, and terminated the employee. The declination letter praised the company's exceptional and proactive cooperation. Organizations facing potential employee criminal conduct must choose between self-disclosure and cooperation or handling matters internally and risking government discovery and prosecution.
Read at Business Insider
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