Digital Forensics Firm Oxygen Forensics Accused of Hiding Russian Ownership from US Agencies

Arrests and Allegations

The Department of Justice announced the arrest of Lee Reiber, CEO of Oxygen Forensics, and Oleg Sergeyevich Davydov, the company's CTO. Both face charges of conspiracy to commit wire fraud, carrying a potential sentence of up to 20 years in prison. Davydov was arrested in London, and authorities plan to seek his extradition to the U.S.

Deceptive Practices

Oxygen Forensics allegedly misrepresented its ownership and software development origins to secure contracts with U.S. federal agencies. The company reportedly told agencies its software was developed in the United States, despite five Russian nationals, including Davydov, owning and controlling the company and its software being developed in Russia. These Russian nationals allegedly operated through a Cyprus-based holding company, while Oxygen's formal headquarters were in Virginia.

Impact on US Agencies

The Departments of Defense (DOD) and Homeland Security (DHS) purchased Oxygen Forensics' software based on these alleged misrepresentations. Specific DHS branches, including the Secret Service, the National Computer Forensics Institute (NCFI), Homeland Security Investigations, and the Office of the Inspector General, utilized the firm's products. Authorities have not alleged that the software was used to gain unauthorized access to customer data or systems.

Company Operations and Seizures

Oxygen Forensics reportedly holds nearly 10,000 contracts across more than 150 countries. On September 20, U.S. authorities seized approximately 57 domains, cyber infrastructure, and corporate bank accounts belonging to the firm. A separate company owned by Davydov also sold the same software under a different name to Russian entities, including Russia's Federal Security Service (FSB).