Popular on TelAve
- Is Billboard Advertising Still Effective in 2025? - 129
- Mission 3A Establishes Healthcare Advisory Board with Addition of Industry Leaders Patrick Fisher, Kevin Cordell, and Dr. Greg Berlet
- Climate Masters Inc. Poised for Record-Breaking Year in 2025
- Tampa-Based Social Media Marketing Agency Launches New Website to Help Local Businesses Grow Online
- Mother's Day Wake-Up Call for Maternal Health: New Initiative Demands Better Postpartum Support
- Transportation and Communications Sector SG&A Benchmarks 2025 edition released
- The Paris Court of International Arbitration Elects Dr. John J. Maalouf as its New President
- $56.7 Million Announced in Q1 2025 with Revenue Growth and Progress Toward NASDAQ Uplisting for AI Marketing Company: IQSTEL, Inc. Stock Symbol: IQSTD
- Adster Techologies awarded US Patent for breakthrough innovation in reducing latency in Ad Serving
- Whistleblower Seeks SEC and Shareholder Review of Cogent Communications' 2003 Acquisition of FNSI
Similar on TelAve
- Non-Citizen NY Travelers Face Extra Scrutiny at Local Airports: Attorney Robert Tsigler Featured in Gothamist
- $400 Million Run Rate in 2025 for Global Telcom Leader as a Result of Definitive Fintech Acquisition, Fast-Tracking $1 Billion Growth Plan: IQSTEL Inc
- Chosen Launches Mobile Family Closet to Serve Foster, Adoptive, and Kinship Families Across Southeastern Wisconsin
- UIFCA Wealth Academy's Revolutionary UIFCA(UFCA) Token Gains Momentum in AI-Powered Investment Market
- FilmHedge Is Letting A.I. Into the Deal Room—And Hollywood Will Never Be the Same
- $100 Million Financing Unlocked for Aggressive Acquisition and Growth Strategy Including Plan to Acquire Remote Lottery Platform: Stock Symbol: LTRY
- TimelyBill Wins Visionary Spotlight Award for Back Office and OSS Innovation
- TimelyBill Awarded Visionary Spotlight Award
- Prymax Media & Technology Group Acquires 'Hidden Treasures' From Estate of Jewel Records Founder Stan Lewis
- SMEs Face Major Disruption if Unprepared for 2027 Landline Switch-Off, Says Yellowcom
Cogent Communications Faces Federal Scrutiny Over Fraudulent Acquisition and 22-Year Corporate Cover-Up
TelAve News/10862001
"Exhibit 2.5 isn't a footnote — it's the foundation of a 22-year fraud," says whistleblower David J. Koch, who will attend Cogent's May 8 earnings call.
WASHINGTON - TelAve -- By Fiber Network Solutions, Inc.
Just days before its Q1 2025 earnings call, a federal whistleblower has released explosive allegations of securities fraud, obstruction of justice, and racketeering related to Cogent Communications' 2003 acquisition of Fiber Network Solutions, Inc.
The 160-page whistleblower report — now in the hands of the U.S. Attorney — names Cogent officers, board members, and legal counsel, and details a 22-year cover-up involving multiple criminal predicate acts.
As Cogent Communications Holdings, Inc. prepares to announce its Q1 2025 earnings on May 8, one of its earliest — and most deliberately concealed — acquisitions is now the subject of active federal scrutiny.
David J. Koch, former CEO and co-founder of Fiber Network Solutions, Inc. (FNSI), is calling on analysts, investors, and regulators to demand answers about Exhibit 2.5 — a buried document originally submitted with Cogent's S-1 registration statement, where it appeared as an unindexed exhibit labeled only as "miscellaneous assets."
"The acquisition of my company — twice recognized on the Inc. 500 list of America's fastest growing companies — took place while I was medically incapacitated," said Koch. "That was not a 'miscellaneous asset.'"
"Exhibit 2.5 isn't just redacted — it's missing. Entirely. Every payment schedule. Every liability assumption. Every equity release," Koch said.
"I was the co-founder, president, CEO, board chairman, and majority shareholder — stripped of my voting rights while under medical incapacity. Removed by a terminated attorney acting without authority. Now the truth is coming out — and it cuts to the foundation of Cogent's early expansion."
SEC Source Document: Exhibit 2.5 – Original Filing (SEC Archive)
"The proxy authored by William J. Kelly — an attorney terminated for cause three years earlier — was designed to defraud a medically incapacitated founder," Koch stated. "Exhibit 2.5 operationalized and concealed that fraud. That didn't happen by coincidence — it was coordinated participation between conspirators inside my company and inside Cogent."
More on TelAve News
"The proxy and Exhibit 2.5 are the bookends of a fraud that formed the foundation of Cogent's entire business model. Kyle Bacon, the architect of the scheme, confesses as much — on a recorded call."
WHY EXHIBIT 2.5 MATTERS NOW:
KEY QUESTIONS FOR COGENT'S MAY 8 EARNINGS CALL:
Exhibit 2.5 and FNSI Acquisition:
GOVERNANCE AND DISCLOSURE FAILURES:
DIVIDEND SUSTAINABILITY AND FINANCIAL RISK:
"You don't pay out nearly six times your earnings unless you're hiding something — or trying to buy silence," Koch added.
REGULATORY RISK AND FEDERAL INVESTIGATION:
EXECUTIVE CONDUCT AND CRIMINAL EXPOSURE:
"They climbed in bed with him. They gave him the keys to the company's IT infrastructure," Koch said. "And now he's on tape — bragging about tax evasion, concealing assets, disappearing offshore — and specifically naming Dave Schaeffer as participating in the implementation of Fiber Network Solutions' intellectual property and trade secrets to form the very foundation that built Cogent into what it is today."
More on TelAve News
"Cogent's board can't plead ignorance. At this point, silence is complicity."
Whistleblower Recordings and IRS-CI Submissions The Fraud Explained – Full Chronology and Evidence
KOCH'S FINAL WARNING:
"If the board doesn't acknowledge this, it's not just a business risk — it's a breach of fiduciary duty. Shareholders deserve answers. Regulators demand accountability. And federal prosecutors are watching."
SUPPORTING DOCUMENTATION AVAILABLE UPON REQUEST:
⸻
Media Contact / Source Verification:
David J. Koch
Federal Whistleblower – FNSI Fraud Disclosure Case
Email: dave@FiberNetworkSolutions.net
Phone: (614) 364-4085 (Kindly text or email first)
David J. Koch has confirmed that he will attend Cogent's May 8, 2025 earnings call.
⸻
FORWARD-LOOKING STATEMENT AND LEGAL DISCLAIMER
This release includes references to public records, whistleblower submissions, and documented evidence filed with multiple federal agencies. All individuals named are presumed innocent unless and until proven guilty in a court of law.
Statements reflect the firsthand knowledge and good-faith belief of whistleblower David J. Koch as of May 5, 2025, and may be updated as additional facts emerge or investigations proceed.
Just days before its Q1 2025 earnings call, a federal whistleblower has released explosive allegations of securities fraud, obstruction of justice, and racketeering related to Cogent Communications' 2003 acquisition of Fiber Network Solutions, Inc.
The 160-page whistleblower report — now in the hands of the U.S. Attorney — names Cogent officers, board members, and legal counsel, and details a 22-year cover-up involving multiple criminal predicate acts.
As Cogent Communications Holdings, Inc. prepares to announce its Q1 2025 earnings on May 8, one of its earliest — and most deliberately concealed — acquisitions is now the subject of active federal scrutiny.
David J. Koch, former CEO and co-founder of Fiber Network Solutions, Inc. (FNSI), is calling on analysts, investors, and regulators to demand answers about Exhibit 2.5 — a buried document originally submitted with Cogent's S-1 registration statement, where it appeared as an unindexed exhibit labeled only as "miscellaneous assets."
"The acquisition of my company — twice recognized on the Inc. 500 list of America's fastest growing companies — took place while I was medically incapacitated," said Koch. "That was not a 'miscellaneous asset.'"
"Exhibit 2.5 isn't just redacted — it's missing. Entirely. Every payment schedule. Every liability assumption. Every equity release," Koch said.
"I was the co-founder, president, CEO, board chairman, and majority shareholder — stripped of my voting rights while under medical incapacity. Removed by a terminated attorney acting without authority. Now the truth is coming out — and it cuts to the foundation of Cogent's early expansion."
SEC Source Document: Exhibit 2.5 – Original Filing (SEC Archive)
"The proxy authored by William J. Kelly — an attorney terminated for cause three years earlier — was designed to defraud a medically incapacitated founder," Koch stated. "Exhibit 2.5 operationalized and concealed that fraud. That didn't happen by coincidence — it was coordinated participation between conspirators inside my company and inside Cogent."
More on TelAve News
- Chosen Launches Mobile Family Closet to Serve Foster, Adoptive, and Kinship Families Across Southeastern Wisconsin
- New Release Explores Grit, Wit, and Appalachian Life in We Saved Ourselves, Kinda
- WNC Roofing, LLC Opens Spartanburg, SC Location After a Decade of Serving the Upstate
- June Is Men's Health Month 2025:
- Velocity Performance Alliance Shifts Into High Gear with Luxury Auto Real Estate Platform Ahead of NASCAR Debut
"The proxy and Exhibit 2.5 are the bookends of a fraud that formed the foundation of Cogent's entire business model. Kyle Bacon, the architect of the scheme, confesses as much — on a recorded call."
WHY EXHIBIT 2.5 MATTERS NOW:
- All critical schedules — including payment terms, liabilities, and stock allocations — were marked "omitted" in Cogent's S-1 filings.
- The proxy vote enabling the transaction was drafted by an attorney terminated for ethical violations — without board or shareholder consent.
- No shareholder disclosures, fairness opinions, or press releases accompanied the deal.
- Federal agencies — including the FBI, IRS Criminal Investigation, and the SEC — are now actively reviewing whistleblower evidence related to the acquisition.
KEY QUESTIONS FOR COGENT'S MAY 8 EARNINGS CALL:
Exhibit 2.5 and FNSI Acquisition:
- Why were all financial schedules related to the FNSI acquisition omitted from Cogent's SEC filings?
- Who personally benefited from the FNSI acquisition — and where are the proceeds?
- Was the transaction board-approved, independently valued, or subjected to any legal or regulatory review?
GOVERNANCE AND DISCLOSURE FAILURES:
- Why was no press release, shareholder memorandum, or public filing issued disclosing the FNSI acquisition?
- Why was a terminated attorney — removed for cause — permitted to author and submit voting instruments without disclosing his status?
DIVIDEND SUSTAINABILITY AND FINANCIAL RISK:
- Why is Cogent paying a $1.005 quarterly dividend — totaling $4.02 annually — while reporting just $0.69 in earnings per share (TTM)?
- That equates to a dividend payout ratio of 582.61% — an unsustainable figure that would alarm any credible analyst.
- Is Cogent using excessive dividends to prop up its stock price while concealing unresolved legal, governance, and acquisition exposure?
"You don't pay out nearly six times your earnings unless you're hiding something — or trying to buy silence," Koch added.
REGULATORY RISK AND FEDERAL INVESTIGATION:
- Has Cogent received subpoenas, inquiries, or requests for information from federal agencies related to the FNSI acquisition?
- Has the company disclosed whistleblower-related risks, ongoing investigations, or potential liabilities in its SEC filings?
EXECUTIVE CONDUCT AND CRIMINAL EXPOSURE:
- Was Cogent aware that the central figure behind the fraudulent transfer of FNSI — later employed as its Chief Information Officer, Kyle Bacon — had openly discussed evading U.S. taxes, laundering assets through cryptocurrency, and concealing offshore income?
- Why did Cogent retain or elevate an executive who, in recorded phone calls now in the hands of IRS-CI, boasted of hiding millions in Bitcoin, paying yacht staff in crypto, and renouncing his U.S. tax obligations?
- Has Cogent disclosed the reputational, legal, or financial risks associated with Mr. Bacon's conduct — now cited in IRS, SEC, and FBI whistleblower filings?
"They climbed in bed with him. They gave him the keys to the company's IT infrastructure," Koch said. "And now he's on tape — bragging about tax evasion, concealing assets, disappearing offshore — and specifically naming Dave Schaeffer as participating in the implementation of Fiber Network Solutions' intellectual property and trade secrets to form the very foundation that built Cogent into what it is today."
More on TelAve News
- Floating Water Ramp for Pups is Still Making a Splash
- UIFCA Wealth Academy's Revolutionary UIFCA(UFCA) Token Gains Momentum in AI-Powered Investment Market
- New Website Launch Positions TekTone Builders As Tulsa's Commercial Construction Leader
- Inframark Expands Its Capabilities and Presence in Arizona, Adding Wastewater Experts Mehall Contracting
- FilmHedge Is Letting A.I. Into the Deal Room—And Hollywood Will Never Be the Same
"Cogent's board can't plead ignorance. At this point, silence is complicity."
Whistleblower Recordings and IRS-CI Submissions The Fraud Explained – Full Chronology and Evidence
KOCH'S FINAL WARNING:
"If the board doesn't acknowledge this, it's not just a business risk — it's a breach of fiduciary duty. Shareholders deserve answers. Regulators demand accountability. And federal prosecutors are watching."
SUPPORTING DOCUMENTATION AVAILABLE UPON REQUEST:
- Audio recordings of Kyle Bacon discussing the FNSI transaction and concealment strategies.
- Metadata audit of the fraudulent proxy document authored by William J. Kelly.
- Whistleblower filings submitted to the IRS, SEC, and FBI detailing material omissions and fraud.
- Server logs confirming attempted cyber intrusions targeting public disclosures.
⸻
Media Contact / Source Verification:
David J. Koch
Federal Whistleblower – FNSI Fraud Disclosure Case
Email: dave@FiberNetworkSolutions.net
Phone: (614) 364-4085 (Kindly text or email first)
David J. Koch has confirmed that he will attend Cogent's May 8, 2025 earnings call.
⸻
FORWARD-LOOKING STATEMENT AND LEGAL DISCLAIMER
This release includes references to public records, whistleblower submissions, and documented evidence filed with multiple federal agencies. All individuals named are presumed innocent unless and until proven guilty in a court of law.
Statements reflect the firsthand knowledge and good-faith belief of whistleblower David J. Koch as of May 5, 2025, and may be updated as additional facts emerge or investigations proceed.
Source: Fiber Network Solutions, Inc.
Filed Under: Telecom, Information Technology
0 Comments
Latest on TelAve News
- RichMiner: Leading Cloud Mining Platform in 2025 - Advantage Analysis and Participation Guide
- Spiritually Transformative Events Based on Bhagavad Gita – Path to a Fulfilling Life
- Carnegie Hall Hosts Theatrical Concert: El Dorado – A Musical Portrait of Edgar Allan Poe
- Fashion Icon Karl Kani Enters NIL Era with First-Ever Athlete Signing: King Kendrick
- Mental Health Watchdog Calling for a Ban on the Use of the Electroshock Machine in Florida
- Global Patient Organizations Applaud Historic Passage of a Resolution at WHA 78: "Skin diseases as a global public health priority"
- The Great Reset, the First Photorealistic AI Film Makes History at the Cannes Film Festival
- Global Patient Organizations Applaud Historic Passage of Integrated Lung Health Resolution at World Health Assembly 78
- Love, Laughter, And Legacy Collide In The Romantic Comedy "different With Me"
- Natalie Jean Releases Heartfelt Tribute Single "What They Didn't See" Honoring Late Friend and Lyricist Michael Peloso
- Business Funding Assist Significantly Expands Funding Solutions, Empowering Businesses Across the U.S. and Canada
- Leadership Expert and Author Adam Holbrook Launches Breakthrough Book: Character Evolution
- Premium Domain Name "Feedri.com" Now Available for Acquisition After $8,500 Offer
- Solomon Eye Appoints Dr. Nancy Draskovic as Clinical Director of Ocular Surface Disease
- 150% Increase in Fiscal Q2 Sales vs Previous Year to $750,000; Continuous Record Quarters & Profitability for Homebuilding Product: Innovative Designs
- Use Dogecoin (DOGE) to mine Bitcoin (BTC) and earn passive income at home
- European Tech Startup RoarFun discovers a gap in the U.S. market with a branded racing simulator rental at Atlanta's MRO Americas Aviation Convention
- Degrees of Justice: Attorney Frank Walker Charts the Future of Criminal Justice with Ph.D Degree
- The Jesse Roldan Team and Biz Hub Financial Successfully Facilitate One-Day Closing for Investor Deal in Hellertown, PA
- How Does Google Crawl Websites?