Virginia Tech CEO and Russian National Charged with Fraud Over Company Ties

Virginia Tech CEO and Russian National Arrested for Fraudulent Claims

The U.S. Justice Department has charged Lee Reiber, the CEO of Virginia-based Oxygen Forensics, and Russian national Oleg Davydov, with conspiracy to commit wire fraud. The allegations state that the two men misrepresented the company's ownership status, falsely portraying it as independently operated while it was allegedly controlled by Russian nationals.

Background on the Case

The criminal charges emerged following accusations made by a former employee. In an alarming revelation, Reiber, 55, was arrested in Boise, Idaho, while Davydov, 52, was apprehended at London’s Heathrow Airport as he attempted to board a flight to Istanbul. The U.S. authorities are now pursuing his extradition.

Both individuals are facing charges that carry a potential maximum sentence of 20 years in prison. Oxygen Forensics provides digital forensics services to law enforcement and has been associated with several governmental organizations, including the U.S. Secret Service and Homeland Security Investigations.

Misrepresentation of Ownership

According to the criminal complaint, Oxygen Forensics misled U.S. law enforcement agencies for years about its ownership structure, claiming independence while remaining under the control of Davydov and four other Russian nationals through a holding company in Cyprus. During Reiber’s tenure as CEO, which began in March 2022, the identities of the Russian owners were allegedly removed from company records shortly after the escalation of U.S. sanctions on Russia related to its invasion of Ukraine.

The complaint further states that the Russian owners retained significant control over the company, directing operations and governance from behind the scenes. Reiber reportedly signed documents in December 2022 and October 2023 asserting the company's independence, a maneuver that allowed Oxygen to secure a lucrative five-year, $12 million contract with a Secret Service training unit.

Allegations from a Former Employee

Max Weissberg, a former employee of Oxygen Forensics, previously voiced similar claims in a YouTube video released in February, months prior to the arrests. Weissberg alleged that the company was “secretly controlled” by a Russian firm with close ties to the Kremlin and claimed that Reiber was compensated to conceal these facts. Following the video's release, Oxygen Forensics responded by suing Weissberg for defamation, branding his statements part of a retaliatory campaign.

Investigations and Ongoing Scrutiny

The U.S. Department of Commerce's Bureau of Industry and Security, with collaboration from the Department of War Office, has initiated an investigation into the operations of Oxygen Forensics. As part of the ongoing legal proceedings, federal agents seized the company's bank accounts and approximately 57 of its web domains last week, following a warrant issued on September 19.

As this case unfolds, both Reiber and Davydov remain presumed innocent until proven guilty in court. The movements of such esteemed firms associated with federal agencies are under heightened scrutiny as the implications of foreign ties become increasingly significant in light of ongoing geopolitical tensions.