DOJ Arrests Tech Execs for Allegedly Hiding Russian Ownership of Software Sold to U.S. Agencies
The Department of Justice has announced the arrest of two principals from **Oxygen Forensics**, a digital forensics company, on charges of conspiracy to commit wire fraud. The executives are accused of concealing the company's Russian ownership and development while selling its software to various U.S. government agencies, including the Departments of Defense and Homeland Security.
# Digital Forensics Firm Accused of Deceiving U.S. Government About Russian Ties
The U.S. Department of Justice (DOJ) has taken action against **Oxygen Forensics**, a company specializing in data extraction and digital forensics. Two key figures, CEO **Lee Reiber** and CTO **Oleg Sergeyevich Davydov**, face charges for allegedly misrepresenting the company's foreign ownership and the origin of its software, which was reportedly developed in Russia.
## Deceptive Practices and Government Contracts
According to a press release, U.S. agencies, including branches of the **Department of Defense (DOD)** and **Department of Homeland Security (DHS)**, purchased **Oxygen Forensics**' software under the alleged false pretense that it was developed in the United States. DHS components such as the **Secret Service**, the **National Computer Forensics Institute (NCFI)**, **Homeland Security Investigations**, and the **Office of the Inspector General** were among the users of the firm's products.
**Oxygen Forensics** operates in a competitive market, rivaling well-known digital forensics companies like **Cellebrite**. These tools are frequently employed by law enforcement and intelligence agencies to access data from mobile devices and other sources.
## The Arrests and Charges
**Lee Reiber**, 55, of Boise, Idaho, was arrested and subsequently released on bond. **Oleg Sergeyevich Davydov**, 52, a Russian national and the company's CTO, was arrested in London, with U.S. authorities planning to seek his extradition. Both men are charged with conspiracy to commit wire fraud, a felony that carries a potential sentence of up to 20 years in prison.
In a significant move, U.S. authorities seized approximately 57 domains, cyber infrastructure, and corporate bank accounts belonging to **Oxygen Forensics** on September 20. The company's website has since been taken down.
## Allegations of Concealed Ownership and Development
An affidavit from the DOJ alleges that **Reiber** informed government agencies that **Oxygen Forensics**' software was developed in the U.S., despite five Russian nationals, including **Davydov**, owning and controlling the company and its software being developed in Russia. Prosecutors claim that **Davydov** and four other Russian nationals used a Cyprus-based holding company to obscure their involvement, even though **Oxygen Forensics** is formally headquartered in Virginia.
Adding to the concerns, Russia's **Federal Security Service (FSB)**, the **Russian Investigative Committee**, and the **Russian Ministry of Internal Affairs** reportedly acquired similar software from a separate company owned by **Davydov**.
The DOJ has clarified that there is no current allegation that the software was used for unauthorized access to customer data or computer systems, nor is there evidence of malicious code embedded within the software.
## Evading Sanctions and Continued Deception
Prosecutors assert that the scheme to conceal Russian ties intensified following Russia's invasion of Ukraine and the subsequent imposition of U.S. sanctions. This prompted **Oxygen Forensics** to remove Russian names from its corporate filings.
**Reiber** became CEO, president, and chairman of the board in March 2022, shortly before these corporate filing changes. However, prosecutors allege that the company's Russian owners continued to exert significant control, making key decisions, setting **Reiber**'s compensation, overruling his payments, and holding signatory authority over bank accounts.
The deception allegedly continued, with **Reiber** telling a journalist in November 2023 that media attention on Russian ties "could destroy this entire opportunity," referring to a pending contract with the **NCFI**. In September 2024, the **NCFI** signed a five-year deal with **Oxygen Forensics**, with **Reiber** certifying no "immediate or higher level owner." Similar certifications were allegedly made to the **Department of Defense** and **DHS** officials, denying Russian involvement.
## Calls for Greater Scrutiny
Digital rights advocates have long noted **Oxygen Forensics**' Russian connections as an "open secret." **Natalia Krapiva**, senior tech legal counsel at **Access Now**, emphasized the critical need for transparency.
"No surveillance tool should come anywhere near a US investigation until we know who owns it, who builds it, and who else they are selling to," **Krapiva** stated. She highlighted the potential dangers, noting that the same software sold to U.S. law enforcement was allegedly used by the **FSB** to extract data from the phones of anti-war Russians, leading to criminal charges.
**Krapiva** concluded, "When governments buy technologies from shady companies like **Oxygen** and take their word for it, we don't just risk our own security, but we also risk funding someone else's repression."
