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It sounds like your users are making use of Notes encryption. When the document is sent and the option to encrypt the new email is selected the client will perform a lookup (locally and on the server) to locate the Notes certified public key of the user we are sending the encrypted email to. If the certified public key is found then the document is encrypted using those keys. Naturally, exchange has no clue on how to decrypt this as it would need the private key from the Notes user id of the user receiving the email to decrypt it.
There are a couple of options.
1. Prohibit users from encrypting emails.. This can be done via a Domino policy.
2. Remove the certified public key from the person documents of the users that have been migrated to exchange. By removing the certified public key when the user tries to send an encrypted email it will fail to locate the public key and will warn the user that the email will not be encrypted and will ask if the user wants to send the email unencrypted instead.
NOTE there is a possibility where the local address book might already contain an entry for the exchange users with the public key. Starting with Notes 8 and the introduction of recent contacts information of users we send mail to is stored locally on the PAB (even the certified public key). You might need to clean that up as well.
Feedback response number RCAA9J7TNP created by ~Keiko Deskiburli on 04/15/2014