New Evidence Confirms Cogent's Deliberate Obstruction, Whistleblower Suppression, and Exposure to Criminal Racketeering Charges

WASHINGTON - June 9, 2025 - PRLog -- Federal whistleblower David J. Koch has accused Cogent Communications of obstruction, whistleblower suppression, and racketeering in connection with its concealed 2003 acquisition of Fiber Network Solutions, Inc. (FNSI). Koch alleges that Cogent erased his founder shares and acquired FNSI's assets while he was medically incapacitated and legally protected under long-term disability insurance.

Between March 14 and May 23, 2025, Koch issued a series of formal notices to Cogent's executive team and Board of Directors, offering lawful, documented paths to resolution. All were rejected.

Cogent's Chief Legal Officer, John Chang, formally denied wrongdoing in a March 19 response—despite the fact that Koch's 160-page evidentiary report had already been filed with the IRS-CI, FBI, SEC, FAA, and U.S. Attorney's Office. His submission triggered multiple case numbers and federal investigations. "They were offered a seat at the table," said Koch. "They chose a bunker. Now they're trapped inside, watching it collapse around them."

Central to the case is "Exhibit 2.5," which Koch says was buried in Cogent's 2004 IPO registration as a "miscellaneous asset acquisition." The exhibit has now been confirmed as FNSI's full asset purchase agreement—executed while Koch was medically incapacitated and unable to consent. Despite multiple legal demands, Cogent refuses to produce the schedules that accompany the exhibit, which Koch asserts would confirm fraud, whistleblower retaliation, and violations of 18 U.S.C. § 1962(d) (RICO Conspiracy).

Since receiving formal whistleblower notice, Cogent CEO Dave Schaeffer has liquidated $9,099,698 in stock through five insider sales between May 15 and June 4, 2025. These sales occurred while the company was actively denying wrongdoing and refusing to produce the withheld documents.

The case draws stark parallels to the Wilmington Trust prosecutions, in which four senior executives were convicted of conspiracy and securities fraud for concealing financial risk. Koch warns that Cogent's Board now faces similar liability, particularly given Wilmington Trust's role as indenture trustee in Cogent's recent $174.4 million securitization—executed after whistleblower disclosures were received.

"This isn't historical," said Koch. "It's ongoing. Every act of concealment resets the clock."

This is an abbreviated release:

Full Text Release, Supporting evidence and documentation available at:
https://fibernetworksolutions.net/Exhibits/20250605Files/...