DOJ alleges Oxygen Forensics hid Russian ties for U.S. contracts

DOJ charged Oxygen Forensics executives with wire fraud for allegedly hiding Russian ownership while selling software to U.S. agencies.

The Justice Department arrested Oxygen Forensics CEO Lee Reiber and Oleg Davydov, whom The Record identifies as CTO Oleg Sergeyevich Davydov, on conspiracy to commit wire fraud for allegedly concealing Russian ownership of digital forensics software sold to U.S. agencies. CyberScoop reports Reiber was arrested in Idaho and Davydov in London. Prosecutors say five Russian nationals controlled the Virginia-headquartered firm through a Cyprus holding company, removed their names from filings after Russia's 2022 invasion while retaining decision-making and bank authority, and that agencies bought the tools after certifications that no foreign person controlled the company. Those buyers included the Defense Department, Secret Service, Homeland Security Investigations, the DHS inspector general, and the National Computer Forensics Institute; CyberScoop says Secret Service and NCFI purchases after expanded sanctions exceeded $2 million and that sales dated to March 2022. The Record says authorities seized about 57 domains, infrastructure, and corporate bank accounts on September 20. Both outlets say prosecutors are not alleging malicious code or unauthorized access; CyberScoop says Oxygen Russia's customers included the FSB, while The Record says a separate Davydov company sold the same software to the FSB, Investigative Committee, and Interior Ministry.

• CEO Lee Reiber and Oleg Davydov—identified by The Record as CTO Oleg Sergeyevich Davydov—face conspiracy to commit wire fraud charges.
• CyberScoop reports Reiber was arrested in Idaho and Davydov in London.
• Prosecutors allege five Russian nationals controlled the Virginia-based firm through a Cyprus holding company and that their names were removed from filings after 2022 while they kept decision-making and bank authority.
• Buyers included the Defense Department, Secret Service, Homeland Security Investigations, the DHS inspector general, and NCFI; CyberScoop says Secret Service and NCFI purchases after expanded sanctions exceeded $2 million.
• Both reports say the complaint does not allege malicious code or unauthorized access to customer systems.
• Sources differ on Russian government customers: CyberScoop says Oxygen Russia's customers included the FSB; The Record says a separate Davydov company sold the same software to the FSB, Investigative Committee, and Interior Ministry.
• The Record says authorities seized about 57 domains, infrastructure, and corporate bank accounts on September 20.