Digital forensic software purchased by sensitive US government agencies was allegedly developed in Russia by a company whose customers reportedly included the country’s Federal Security Service, according to a newly unsealed federal criminal complaint.
US authorities have arrested Oxygen Forensics CEO Lee Reiber and Russian national Oleg Davydov, accusing them of concealing the company’s Russian ownership and development operations while securing US government contracts. Both are charged with conspiracy to commit wire fraud and face up to 20 years in prison if convicted.
Oxygen Forensics sells software designed to extract and analyze information from smartphones, computers and other electronic devices. Its US customers included the Department of War, the Secret Service’s National Computer Forensics Institute, Homeland Security Investigations and the Department of Homeland Security’s Office of Inspector General.
Prosecutors allege that five Russian nationals, including Davydov, actually owned and controlled Oxygen Forensics through a Cyprus-based holding company. Those same individuals also owned a Russian company previously called Oxygen Software and now known as MKO Systems.
The software sold by Oxygen Forensics was allegedly written and managed by developers in Russia under Davydov’s direction. MKO Systems reportedly sold versions of the technology under different names to Russian government customers, including the FSB, Investigative Committee and Ministry of Internal Affairs.
The Russian connection carries an additional human rights dimension. Related forensic technology was reportedly used by the FSB to unlock an iPhone belonging to Russian-American journalist Alsu Kurmasheva after authorities seized her devices. Information extracted from the phone was later used in the criminal case against her.
After sanctions against Russia expanded in 2022, prosecutors say the owners took steps to conceal their involvement. Reiber was installed as CEO, Russian owners disappeared from public corporate filings, and the company allegedly told US agencies that it had no foreign ownership or control.
Reiber also allegedly denied that Russians were developing the software. Prosecutors say the Russian owners nevertheless continued making significant business decisions, controlling payments and maintaining authority over company accounts.
Federal authorities have seized corporate bank accounts, approximately 57 domains and other infrastructure connected to the alleged scheme. Davydov was arrested at London’s Heathrow Airport and faces extradition to the US, while Reiber was arrested in Idaho and released on bond.
The Justice Department has emphasized that it is not accusing Oxygen’s software of containing malicious code or secretly accessing customer systems. The criminal case instead concerns allegations that the defendants concealed who controlled the company and where its sensitive forensic technology was actually developed.