Tech CEO and CTO Arrested Over Alleged Scheme to Hide Russian Ownership of Forensics Firm

Federal authorities have charged Lee Reiber, CEO of Oxygen Forensics Inc., and the company’s chief technology officer, Oleg Sergeyevich Davydov, with conspiracy to commit wire fraud for allegedly concealing Russian ownership of a digital forensics firm that sold software to U.S. agencies.

Arrests and Charges

Reiber, 55, of Boise, Idaho, was arrested locally and released on bail. An arraignment in Los Angeles is expected in the coming weeks. Davydov, 52, was detained at London’s Heathrow Airport while attempting to fly to Istanbul; U.S. authorities said they will seek his extradition.

Allegations and Ownership Structure

An affidavit filed with the criminal complaint alleges that five Russian nationals secretly owned and controlled Oxygen Forensics through a Cyprus-based holding company. Prosecutors say the company’s software was developed in Russia and that the same individuals owned a Russian firm formerly known as Oxygen Software LLC (now MKO Systems LLC).

The filing alleges those Russian owners sold the same digital forensics software inside Russia to the Federal Security Service (FSB), the Russian Investigative Committee and the Russian Ministry of Internal Affairs.

Steps Allegedly Taken To Conceal Ownership

After expanded U.S. sanctions on Russia following the 2022 invasion of Ukraine, prosecutors say the co-conspirators agreed to hide the firm’s true ownership. Reiber was appointed CEO, president and board chair in March 2022, and the Russian owners were removed from public corporate filings. The complaint alleges, however, that those owners continued to influence company operations: they set Reiber’s compensation, overruled his payment decisions, and retained signatory authority on corporate bank accounts.

According to the affidavit, Reiber certified to the U.S. government in December 2022 and again in October 2023 that Oxygen Forensics had no immediate or highest-level owner—statements the complaint describes as false.

“Could destroy this entire opportunity,” the complaint says Reiber wrote, warning Russian owners that public reporting on the ties could jeopardize a pending government contract.

Government Contracts and Seizures

Court filings cited by news outlets say the Secret Service’s National Computer Forensics Institute awarded Oxygen Forensics a five-year software contract with a $12 million ceiling in September 2024; the award file included Reiber’s October 2023 certification. Prosecutors also allege the company certified to the Pentagon in July 2024 that no foreign person could direct its decisions, even though the affidavit states a Russian owner had recently joined the board under a Turkish identity.

On Sept. 19, a federal magistrate in the Central District of California issued a warrant authorizing seizure of the company’s corporate bank accounts and roughly 57 domain names; those assets were seized the following day.

Scope and Limits of the Complaint

The criminal complaint does not allege that the software contained malicious code or that it was used to gain unauthorized access to customers’ systems. The charges focus on alleged deception about ownership and false certifications to U.S. authorities.

Next steps: The case will proceed through federal court, including the expected arraignment for Reiber in Los Angeles and extradition proceedings for Davydov if approved.