Oxygen Forensics CEO and Russian national charged in the US — CNBC
The US Department of Justice has charged Oxygen Forensics CEO Lee Reiber and Moscow businessman Oleg Davydov with conspiracy to commit wire fraud. According to prosecutors, they spent years misleading US government agencies about who controlled the Virginia-based software developer.
As CNBC reports, 55-year-old Reiber was arrested in Boise, Idaho, where he lives, and was later released on bail. He is expected to appear before a federal court in Los Angeles in the coming weeks. Davydov, 52, was arrested at London Heathrow Airport as he was preparing to fly to Istanbul. US authorities, according to the outlet, intend to seek his extradition.
Allegations regarding control of the company
Oxygen Forensics sells digital forensics software that law enforcement and government agencies use to extract and analyze data from phones and computers. Its clients, according to the outlet, included the US Secret Service, Homeland Security Investigations, and the US Department of War, as the Pentagon is now officially called.
The criminal complaint states that the company told these agencies for several years that it was independently owned and operated in the United States. Prosecutors allege that Oxygen Forensics was secretly owned and controlled through a Cypriot holding company by Davydov and four other Russian citizens, while the software was developed by a team in Russia led by Davydov.
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$12 million contract
Reiber became CEO in March 2022, shortly before the names of the Russian owners were removed from the company’s public registration documents. This happened amid Washington’s expansion of sanctions against Moscow after the invasion of Ukraine. According to the investigation, the owners retained control behind the scenes: they determined Reiber’s compensation and had authority over the firm’s bank accounts.
In December 2022 and October 2023, Reiber allegedly signed documents for the US government falsely stating that the company was independent and had no outside owner. According to prosecutors, this helped Oxygen Forensics secure a five-year, $12 million contract in 2024 with the US Secret Service’s training division.
Last week, investigators seized the company’s corporate bank accounts and about 57 of its web domains under a warrant issued on September 19. The investigation is being conducted by the US Department of Commerce’s Bureau of Industry and Security with assistance from an office of the US Department of War. All defendants are presumed innocent until proven guilty in court.
