Cogent Communications, Wilmington Trust, and M&T Bank Now on Legal and Ethical Record

Cogent Communications, Wilmington Trust, and M&T Bank are now on formal legal record for executing a $174.4M transaction based on a criminally concealed 2003 acquisition. New evidence reveals a 22-year cover-up, whistleblower obstruction, and material SEC nondisclosure. Full exhibits at FiberNetworkSolutions.net End Quote

That was a predatory confiscation. Co-conspirator Bacon quotes are a confession. The model that built Cogent was not theirs. it was seized.

(1888PressRelease) April 21, 2025 - WASHINGTON, D.C. - Cogent Communications Holdings, Inc., Wilmington Trust, and M&T Bank now face heightened scrutiny following a $174.4 million IPv4 securitization deal tied to a previously undisclosed 2003 acquisition of Fiber Network Solutions, Inc. (FNSI).

At the time of the transaction, FNSI’s founder and majority shareholder, David J. Koch, was medically incapacitated. The acquisition was recorded in Exhibit 2.5 of Cogent’s 2004 S-1 SEC registration under the heading “miscellaneous assets”—with no accompanying governance schedules, shareholder disclosures, or board minutes.

SEC Source: https://www.sec.gov/Archives/edgar/data/1158324/000104746903011242/a2106111zex-2_5.htm

No press release or public announcement was made regarding the acquisition, which nullified Koch’s 1.2 million shares and consolidated asset control among a small group of insiders.

According to recent disclosures, systems developed at FNSI were subsequently implemented within Cogent providing the foundation for its current business model.

Kyle Bacon reveals that his first assignment after the acquisition of FNSI, and his full-time engagement with Cogent, CEO Dave Schaeffer told him the three colocation centers acquired from PSInet were hemorrhaging approximately $60,000 per month each – $150,000 combined – against $12,000 in total revenue – losses that were unsustainable.

According to Bacon, Cogent’s CEO, Dave Schaeffer pointed out that the five colocation centers he bought with the FNSI acquisition were profitable, and asked if Bacon could replicate their performance.

Bacon responded by deploying FNSI’s systems, intellectual property, proprietary architecture, and operational playbook—transforming the failing PSInet liabilities into profitable data centers in only nine months.

Bacon states to Koch, “I took our model – I took our data center model…” Kyle further explains how he took FNSI’s sales playbook and presented it to Cogent’s sales department.

Nine months later, Cogent’s three PSInet data centers went from losing $150,000 a month to earning over $110,000 a month.

That is what Koch owned. That is what Cogent—and a small group led by Bacon—seized while FNSI’s founder, President and CEO was medically incapacitated.

New evidence suggests the concealment of the 2003 acquisition was part of a longer pattern of nondisclosure. Since December 2023, a series of predicate acts—including document suppression and silence in response to formal notices—have been documented in whistleblower filings. These filings have been submitted to federal regulators including the FBI, SEC, and IRS-CI.

Despite four notices to Cogent regarding the whistleblower evidence, Cogent’s reply was: “You should not expect responses to your future correspondence. We will reply if and when we believe a reply is warranted.”

That message is now referenced in public filings as confirmation of receipt and awareness of the concerns raised.

All supporting exhibits, recordings, legal documents, and correspondence are publicly available at:

https://FiberNetworkSolutions.net

This is an abbreviated release. To review the extended release and full legal history, visit:

https://FiberNetworkSolutions.net/news.html

Legal Notice (Federal & State Protections)
This statement is issued in good faith under the authority of applicable federal whistleblower statutes and the Texas Citizens Participation Act (TCPA). All content is based on firsthand experience, authenticated materials, and filings submitted to relevant regulatory agencies. Any attempt to suppress or retaliate against this publication may carry civil and criminal consequences under state and federal law.

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