Netcracker Technology Corp., a global software company serving the telecommunications industry, entered into a non prosecution agreement to settle an investigation of “various factors that resulted in an unacceptable degradation of the level of security” on projects contracted with the Defense Information Systems Agency (DISA).

Some of those “factors that resulted in an unacceptable degradation of the level of security” included using programmers from Russia and the Ukraine despite assurances that all “employees assigned to the project would be citizens of the United States” although, according to a statement of facts attached to the non prosecution agreement, Netcracker and DISA had different understandings of the terms of the contracts.

Netcracker worked as a subcontractor on two contracts with DISA, a combat support agency of the U.S. Department of Defense, and performed some product-support work from locations outside the United States, including Russia.

The Justice Department said that Netcracker denied wrongdoing and worked with the government to develop enhanced security protocols.

Netcracker was represented by F. Whitten Peters and Steven Cady of Williams & Connolly in Washington, D.C.

To settle the case, the company agreed to implement enhanced security protocols for software development, implementation, and its other services to clients, many of whom are part of the United States’s critical communications infrastructure.

The enhanced security protocols are designed to increase information security by regulating remote access to U.S. company networks and transfers of sensitive data.

Under the agreement, Netcracker will make the enhanced security plan available to other members of the industry.