Russian-linked software sold to US government as CEO allegedly hid Russian control – two now arrested

The US Justice Department has arrested the CEO of Virginia's Oxygen Forensics, Lee Reiber, and a Russian man, Oleg Sergeyevich Davydov, on charges of concealing the company's Russian ownership and Russian development while selling its software to US government agencies. Reiber, 55, and Davydov, 52, are accused of conspiracy to commit wire fraud.

The DOJ alleges five Russian nationals, including Davydov, owned and controlled Oxygen Forensics through a Cyprus-based holding company, with the software developed in Russia by a team under Davydov's direction. Despite US agencies being presented as an independent American company with no foreign ownership, the DOJ asserts the company sold forensic software to the US Department of War and three DHS components, including the Secret Service's National Computer Forensics Institute.

The Russian owners allegedly continued to make significant decisions, control payments, and retain signatory authority over bank accounts despite their names being removed from public filings. The Russian company, previously Oxygen Software, continued to sell software in Russia, including to the FSB and Ministry of Internal Affairs.

Reiber was installed as CEO and chairman in March 2022, after the Russian owners were removed from public filings, but the DOJ alleges the Russian owners retained control. Reiber reportedly denied Russian involvement, claiming no Russian was involved in software development and no one in Russia had access. He later published a statement denying any Russian development presence.

Reiber was arrested in Idaho and Davydov in London, with the latter's extradition pending. The DOJ seeks to seize Oxygen Forensics' corporate bank accounts, domains, and other cyber infrastructure allegedly used in the scheme.