The US government reportedly bought about $2 million worth of software from a Russian developer that also worked with Russian security agencies.
Origins of Oxygen Forensics:Lee Reiber, the 55-year-old CEO of Oxygen Forensics, and Oleg Davydov, 52, a Russian co-founder and software developer, were arrested this week following the incident. Reiber was arrested in Idaho and released on bond after appearing in court.
The software was purchased by agencies, including the Department of Defense, Secret Service and Department of Homeland Security, The New York Times reported. However, the case has raised concerns about company ownership, transparency and possible national security risks. They alleged that the company made false representations that government procurement agents relied on. Additionally, employees and shareholders took steps to hide the fact that the software development team was in Russia. Additionally, the Russian company changed its name from Oxygen Software to MKO-Systems.
Two executives of Virginia-based Oxygen Forensics have been accused of hiding the company’s true origins and ownership while selling its products, federal prosecutors said in a statement Wednesday. The Justice Department said that there was no evidence that the software contained malware or was used to access government systems illegally. Reiber was then named CEO and the company’s charter was amended “so that, in the words of one shareholder, ‘fateful decisions’ would continue to be made” by them in Russia without losing US business opportunities, the US agent, investigating the complaint, noted.
