US Justice Department: Oxygen Forensics CEO Hiding Russian Ties Charged

• Oxygen Forensics CEO Lee Reiber and Russian owner Oleg Davydov were arrested on conspiracy to commit wire fraud charges.
• Prosecutors allege Reiber falsely told the U.S. government the company had no foreign ownership and its software was U.S.-developed, despite being controlled by five Russian nationals and developed in Russia.
• The Virginia-based company sold its Russian-developed digital forensic software to the U.S. Secret Service.
• Reiber allegedly orchestrated a plan to obscure the software's Russian origin, even after being warned about government security concerns.
• The alleged deception involved a $12 million contract with the National Computer Forensics Institute, secured with a certification denying foreign ownership.

Federal prosecutors have brought charges against the CEO of Oxygen Forensics Inc., Lee Reiber, alleging he concealed the company's true ownership by five Russian nationals while selling forensic software to the U.S. Secret Service. The company's corporate bank accounts, domains, and other cyberinfrastructure were seized on September 20, 2026, and its website became inaccessible. Reiber was arrested in Idaho on Sunday, facing a charge of conspiracy to commit wire fraud. On the same day, Oleg Davydov, identified as one of the Russian owners of the Virginia-based firm, was apprehended at London Heathrow Airport, also on a charge of conspiracy to commit wire fraud.

The U.S. Justice Department alleges that Reiber falsely certified to the federal government that Oxygen Forensics had no foreign ownership or control and that its digital forensic software was developed domestically. Contrary to these representations, prosecutors contend that five Russian nationals, including Davydov, owned and controlled the company, and the software itself originated in Russia. This digital forensic software is designed to recover, preserve, and analyze electronic data from various devices without altering the original files.

While federal authorities have not claimed that the software contained malicious code or was used to gain unauthorized access to Secret Service computer systems or data, the core of the accusation centers on the deliberate misrepresentation of the company's foreign ties. The case highlights significant concerns regarding the integrity of supply chains for sensitive government contracts, particularly when dealing with technology providers.

Evidence presented in the criminal complaint suggests that **Oxygen Forensics CEO hiding Russian ties** was a deliberate strategy. According to a U.S. Department of Commerce special agent, Lee Reiber was aware as early as 2018 of the U.S. government's security concerns regarding software developed in Russia. This awareness was reinforced in January 2024, when Reiber received written notification that foreign government clients would decline to purchase the forensic software if its Russian development origin became known.

To circumvent these concerns, Reiber and Oleg Davydov allegedly orchestrated a plan in March 2022. They arranged for Reiber to initiate the software build on U.S.-based cloud infrastructure. Reiber's own words, as cited by the special agent, indicated his intent was to be able to claim, "this is what I do or what we do in the US," even though the actual code continued to be written, reviewed, and managed by the development team located in Russia. This tactic aimed to create a facade of U.S. development for the **digital forensic software Russia** produced.

Oleg Davydov's involvement traces back to 2000, when he co-founded Oxygen Software LLC in Russia, where he serves as chief technology officer overseeing the development of its forensic software. He played a key role in establishing the U.S. affiliate, Oxygen Forensics Inc., in 2013 and was initially listed as its vice president in U.S. corporate filings. However, following the U.S. imposition of sanctions on Russian companies in 2022 due to the invasion of Ukraine, Davydov's name was removed from the Virginia company's corporate records. Concurrently, the Russian entity changed its name to MKO-Systems LLC, a company that also sells its forensic software to the Russian secret service.

The alleged deception came to a head in November 2023, when a reporter questioned Reiber about Oxygen Forensics’ ownership and its connections to the Russian company. In response, Reiber reportedly communicated with Davydov and two other Russian owners, expressing concern that public disclosure of these ties "could destroy this entire opportunity," referring to a significant pending contract with the National Computer Forensics Institute (NCFI). He further warned that the "current existence of this company hangs in the balance."

Despite these internal concerns, the NCFI proceeded to award a five-year contract for the software in September 2024, with a ceiling value of $12 million. The award documentation included a certification from Reiber, dated October 2023, affirming that the company had no immediate or highest-level owner. This certification is now central to the **conspiracy to commit wire fraud** charges brought by the **US Justice Department Oxygen Forensics** investigation.

This case, involving the **Lee Reiber arrest** and the alleged **Oleg Davydov wire fraud**, underscores the critical importance of rigorous supply chain due diligence, especially for government contractors. It highlights the necessity for accurate disclosure of beneficial ownership, particularly concerning foreign ties and potential national security implications. Legal and compliance teams must ensure that their clients' representations about ownership and software origin are verifiable to prevent severe legal repercussions, including charges of wire fraud and conspiracy. An attorney representing Reiber has not yet responded to requests for comment.

This case underscores the critical importance of rigorous supply chain due diligence and accurate disclosure of beneficial ownership for companies contracting with government entities, particularly concerning foreign ties and national security implications. Legal and compliance teams must ensure their clients' representations about ownership and software origin are verifiable to avoid wire fraud and conspiracy charges.

Source: Original reporting via Courthouse News Service