Feds Arrest Oxygen Forensics CEO for Hiding Russian Ownership in Gov Software
Oxygen Forensics CEO arrested Sept 20 for hiding Russian control from US government.
Why it matters: This case exposes gaps in vetting foreign-linked tech suppliers for government contracts, risking national security and compliance failures.
- Lee Reiber, CEO, arrested Sept 20, 2026, in Idaho for conspiracy to commit wire fraud.
- Oxygen Forensics owned by five Russian nationals via a Cyprus holding company.
- US Secret Service and National Computer Forensics Institute (NCFI) bought software developed in Russia.
- NCFI awarded Oxygen a $12 million contract in Sept 2024 despite undisclosed Russian ties.
Federal prosecutors charged Lee Reiber, CEO of Oxygen Forensics Inc., on September 20, 2026, with conspiracy to commit wire fraud for allegedly concealing Russian ownership of software sold to US government agencies.
Reiber was arrested in Idaho the same day, while co-founder Oleg Sergeyevich Davydov, a Russian national, was detained in London before a flight to Istanbul, according to federal filings.
The company is reportedly owned and controlled by five Russian nationals through a Cyprus-based holding company. The software, developed in Russia, was sold to the US Secret Service and the National Computer Forensics Institute (NCFI), which awarded a $12 million contract in September 2024.
Prosecutors allege Reiber falsely certified in October 2023 that Oxygen Forensics had no foreign ownership at the highest level. A Department of Commerce agent advised that Reiber was aware since 2018 that the Russian-developed software raised security concerns. He was also warned in January 2024 that foreign customers might reject the software if its Russian origin was revealed.
The complaint details how Reiber and Davydov arranged in March 2022 to transfer software build activities to US-based cloud servers. This was allegedly done to conceal ongoing development in Russia. Internal messages show Reiber feared public disclosure of Russian ties could "destroy this entire opportunity," threatening the company’s survival and key contracts like the one with NCFI.
The Russian entity behind Oxygen Forensics, renamed MKO Systems LLC in September 2022, also sold forensic software to Russian government agencies including the FSB and Ministry of Internal Affairs, complicating risk assessments for US agencies.
This case highlights challenges in verifying foreign involvement in technology providers to the US government. It underscores the need for rigorous compliance and transparency in procurement processes during heightened geopolitical tensions.
By the numbers:
- $12 million — contract awarded by NCFI to Oxygen Forensics in September 2024
- September 20, 2026 — date Lee Reiber was arrested in Idaho
- Five — number of Russian nationals controlling Oxygen via Cyprus holding
Yes, but: While prosecutors present strong allegations, the defendants have yet to be convicted and maintain the presumption of innocence.
What's next: Legal proceedings are expected to unfold over the coming months, with pretrial hearings likely in early 2027.