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CEO Charged In Scheme To Infiltrate Secret Service With Foreign Nationals

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An American technology executive and a Russian national have been charged with conspiracy to commit wire fraud in connection with alleged efforts to conceal Russian ownership and software development at a digital forensics firm that obtained U.S. government contracts, including work involving the Secret Service.

The U.S. Attorney’s Office for the Central District of California announced on September 23 that Lee Reiber, 55, of Boise, Idaho, chief executive officer of Alexandria, Virginia-based Oxygen Forensics Inc., and Oleg Sergeyevich Davydov, 52, of Moscow, had been arrested

Reiber was taken into custody in Idaho on September 20, made an initial appearance in U.S. District Court in Idaho, and was released on bond. He is expected to be arraigned in Los Angeles. Davydov was arrested the same day at London Heathrow Airport before a flight to Istanbul. U.S. authorities intend to seek his extradition.

“The CEO of a Virginia-based software company and a Russian national have been arrested on a federal criminal complaint charging them with concealing from U.S. government agencies that their company was owned and controlled by Russian nationals and that its software was developed in Russia,” prosecutors said.

They further stated that “Reiber allegedly represented to the government that the company had no foreign ownership or control and that its software was developed in the United States, when in fact five Russian nationals, including Davydov, owned and controlled the company and its software was developed in Russia.” The complaint does not allege that the software contained malicious code or was used to gain unauthorized access to any customer systems or data.

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According to an affidavit supporting the complaint, from March 2022 onward Reiber, Davydov, and others allegedly conspired to obtain federal contracts through Oxygen Forensics. The software recovers, preserves, and analyzes data from digital devices.

Affected agencies identified in the affidavit include the Department of War and Department of Homeland Security components: the Secret Service and its National Computer Forensics Institute (NCFI), Homeland Security Investigations, and the DHS Office of Inspector General.

“According to the affidavit, Oxygen Forensics held itself out to the U.S. government as being an independent, U.S.-based company. In fact, Davydov and four other Russian nationals owned and controlled the company through a holding company based in Cyprus,” prosecutors said.

The same five individuals owned a Russian company, formerly Oxygen Software LLC and later MKO Systems LLC, co-founded by Davydov in 2000. Developers worked in Russia. MKO sold similar software in Russia to customers reported to include the FSB, the Russian Investigative Committee, and the Russian Ministry of Internal Affairs. Davydov served as that company’s chief technology officer and helped establish the Virginia firm in 2013.

After expanded U.S. sanctions on Russia in early 2022 following the invasion of Ukraine, the affidavit alleges the parties agreed to conceal ownership and Russian development. Reiber was installed as CEO, president, and board chairman in March 2022. Russian owners were removed from public corporate filings but continued to make significant decisions, set Reiber’s compensation, overrule him on payments, and retain bank-account signing authority.

In December 2022 and October 2023, Reiber certified to the government that the company had no immediate or highest-level owner. In November 2023, after a reporter inquired about ownership, Reiber wrote to Davydov and two other owners that public reporting “could destroy this entire opportunity,” referring to a pending NCFI contract, and that the “current existence of this company hangs in the balance.”

In July 2024, at Reiber’s direction, the company certified to the Department of War that no foreign person controlled appointment of directors or company decisions. In March 2026, Reiber told DHS personnel that no Russian was involved in development and that no one in Russia had access to the build environment. The affidavit states the software was written and managed by a Russian team under Davydov in a cloud environment administered by a Russian owner.

Each faces a statutory maximum of 20 years in prison if convicted.

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