U.S. charges software CEO and Russian businessman over concealed ownership
The Justice Department charged Oxygen Forensics CEO Lee Reiber and Russian national Oleg Davydov with conspiracy to commit wire fraud for allegedly lying about the company's ownership. Prosecutors say Russian owners secretly controlled the digital forensics firm through a Cyprus holding company while it sold software to U.S. agencies. Reiber was arrested in Idaho and Davydov in London, with extradition sought.
The charges stem from a criminal complaint alleging that Oxygen Forensics misrepresented its ownership to U.S. agencies, with a Cyprus-based holding company masking control by five Russian nationals. Reiber, who became CEO in March 2022, allegedly signed false certifications in late 2022 and 2023, helping secure a $12 million Secret Service contract. Investigators seized corporate bank accounts and 57 web domains under a Sept. 19 warrant. The case mirrors accusations made in February by former employee Max Weissberg, whom the company sued for defamation in August.
The complaint also describes a recorded call in March where Reiber denied Russian ties to undercover agents posing as Homeland Security officials. Davydov, arrested at Heathrow, allegedly directed a Russian programming team behind the software. The U.S. Commerce Department’s Bureau of Industry and Security is separately investigating the company.
This case could heighten scrutiny of foreign ownership in firms supplying sensitive technology to U.S. law enforcement, potentially leading to stricter vetting and disclosure rules for government contractors. If proven, the alleged deception may erode trust in digital forensics tools used in criminal investigations, raising concerns about data integrity and national security. Agencies may reassess existing contracts, while other companies could face increased compliance burdens, affecting both industry operations and public confidence in the impartiality of forensic evidence.