CEO and Associate Charged in Russian Ownership Scheme
Federal authorities arrested two men accused of concealing Russian control of a Virginia-based software firm.
Updated on Sept. 23, 2026 in Financial Crime
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Authorities arrested Virginia software CEO Lee Reiber and Russian national Oleg Sergeyevich Davydov on charges of conspiracy to commit wire fraud. The pair allegedly hid Russian ownership of Oxygen Forensics Inc. to secure U.S. government contracts.
Why it matters
The case highlights concerns over foreign influence in federal supply chains, as the defendants allegedly used a Cyprus-based holding company to bypass sanctions and maintain access to sensitive agency contracts.
Lee Reiber and Oleg Sergeyevich Davydov face a maximum sentence of 20 years in prison upon conviction. Reiber is currently slated for arraignment in Los Angeles federal court while extradition for Davydov is pending.
The players
Lee Reiber
He is the Virginia-based CEO of Oxygen Forensics Inc. who was arrested in Idaho.
Oleg Sergeyevich Davydov
He is a Russian national and co-founder of the software firm who was arrested at London Heathrow Airport.
U.S. Department of Justice
The federal executive department responsible for the enforcement of the law and the administration of justice in the United States.
The details
Prosecutors claim Reiber submitted false certifications to U.S. agencies, disguising that Oxygen Forensics was owned by five Russian nationals and developed its software in Russia. While 57 domains and corporate bank accounts have been seized, the government does not currently allege that the company's software contained malicious code.
Timeline
Davydov co-founded the firm in 2000.
The conspiracy to hide ownership began in March 2022.
Federal agents seized the domains and assets on September 20, 2026.
The Department of Justice officially announced the arrests on September 23, 2026.
Legal Context
This case follows a federal pattern of strictly enforcing corporate transparency for contractors operating in sensitive sectors during international conflicts. It reflects the ongoing effort to prevent foreign nationals from bypassing trade restrictions established under the U.S. sanctions imposed after the 2022 Russian invasion of Ukraine.
The seizure of 57 digital domains may cause service disruptions for agencies or clients currently utilizing the software. While the government claims the code is not malicious, users of the software may face administrative reviews regarding their supply chain security.
The takeaway
Entities contracting with the federal government are subject to rigorous ownership disclosure requirements that become even stricter during periods of international sanction. Failing to maintain transparency regarding foreign ownership can lead to severe criminal liability and the total forfeiture of corporate assets.
Further reading
For more information on current enforcement actions, see our guide to Financial Crime.
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