OOP'S

US Company That Sold Phone Hacking Software To Pentagon, Secret Service Lied About Russian Ownership, Officials Say


An aerial view of the Pentagon building, Washington, D.C. Photo Credit: Navy Petty Officer 2nd Class Alexander Kubitza, DOD

September 25, 2026
 RFE RL
By Mike Eckel

Key Takeaways:

U.S. prosecutors say Virginia-registered Oxygen Forensics, which sold digital-forensics tools to the Pentagon and other agencies, was owned by Russians who also ran a Moscow firm serving the FSB. CEO Lee Reiber, 55, of Idaho, was arrested on wire-fraud charges Sept. 22 and released on bail. Oleg Davydov, 52, of Moscow, was arrested at Heathrow Sept. 20; extradition is sought.

Complaint (released Sept. 23): the firm allegedly claimed no foreign ownership and U.S. development. After 2022, ownership was allegedly hidden; inside Russia the firm became MKO Systems. Secret Service’s National Computer Forensics Institute signed a five-year contract in 2024. Authorities say the complaint does not allege malware or unauthorized access to customer systems.

Same day, FBI said it was looking into a claim that a group stole files tied to agents/applicants and hit a jobs site—separate from this case.

A US company that provided digital forensics and data-extraction software to the Pentagon and other government agencies was in fact owned by a Russian company that also sold software to Russian spy agencies, US authorities charged.

Oxygen Forensics’ chief executive — Lee Reiber, 55, of Idaho — was arrested on wire fraud charges and released on bail on September 22, US prosecutors said. A Russian man — Oleg Davydov, 52, of Moscow – was arrested at London’s Heathrow Airport two days earlier, and US officials said they will seek his extradition.

In the criminal complaint released on September 23, US prosecutors said Oxygen Forensics and Reiber in particular allegedly told the US government that the Virginia-registered company had no foreign ownership or control and that its software was developed in the United States.

In fact, prosecutors alleged, Oxygen Forensics was owned by Davydov and four other unnamed Russian citizens who also ran a Moscow-based company that provides software services to the Federal Security Services, Russia’s main intelligence agency.

The company set up a US affiliate in the suburbs of Washington, D.C., in 2013.

After 2022, when the United States and other Western countries tightened regulations in the wake of Moscow’s all-out invasion of Ukraine, Davydov and his partners allegedly moved to conceal Oxygen Forensics’ ownership.

Inside Russia, Oxygen was renamed MKO Systems. The company’s main application, called Mobile Forensic Detective, is in wide use among Russian law enforcement agencies.

The software that Oxygen provided to US government agencies was data-extraction software, used to circumvent security features and gather data from mobile phones, computers, and other electronic devices.


The National Computer Forensics Institute for the Secret Service, which is the agency that provides protective details to the White House and government officials, signed a five-year contract with the company in 2024.

“The complaint does not allege that the software contained malicious code or that it was used to gain unauthorized access to any customer’s computer systems or data,” authorities said.

Both Reiber and Davydov were charged with wire fraud. Reiber did not immediately respond to an e-mail seeking comment. Davydov could not be located for comment.

The announcement comes as instances of hacking, cyberespionage, malware, and other malicious computer activity have exploded around the world.

Government agencies in the United States, Russia, China, Israel, and Iran have invested massive sums into building out new cybercapabilities, and private companies increasingly have access to powerful new nongovernment tools.

The FBI on September 23 announced it was investigating a claim that a hacker group had stolen sensitive files belonging to thousands of agents and applicants and that it had compromised the bureau’s jobs website.Mike Eckel is a senior international correspondent reporting on political and economic developments in Russia, Ukraine, and around the former Soviet Union, as well as news involving cybercrime and espionage. He’s reported on the ground on Russia’s invasion of Ukraine, the wars in Chechnya and Georgia, and the 2004 Beslan hostage crisis, as well as the annexation of Crimea in 2014.