Fiber Network Solutions, Inc. (FNSI), co-founded by David J. Koch, was a profitable Tier One internet backbone and two-time Inc. 500 company. By 2001, it operated multiple revenue-generating data centers and a fully developed network infrastructure serving enterprise customers across the United States.

Before its 2003 transfer to Cogent Communications, FNSI was an established, audited business with documented operations, customers, and financial performance. This site preserves the historical record of that company and the events that followed.

It was never about flash. It was about fundamentals: engineering excellence, mentorship, and creating a real career path for people in their 20s, including a young Kyle Bacon, who joined the effort shortly after finishing his engineering degree. Dave built the business model, the team, the national reach — and trained his own replacement so that others could take flight too.

In February 2003, during a period of documented medical incapacitation, Fiber Network Solutions was transferred to Cogent Communications through a transaction structured as an asset sale. The transaction eliminated Koch’s 1.2 million shares and removed FNSI from public disclosure as an operating business, appearing only as a “miscellaneous asset purchase” within Cogent’s SEC filings.

Individuals involved in the transaction, including Kyle Bacon, subsequently assumed roles within Cogent Communications following the transfer.

This site presents the documented history of FNSI — its founding, growth, and the evidentiary record associated with its 2003 transfer. Koch’s 1.2 million shares are reflected in contemporaneous KPMG audit reports and in the McDonald Investments memorandum, both available on the Evidence page.

It also documents the ongoing federal whistleblower proceedings, including disclosures to the SEC, FBI, DOJ, and IRS-CI.

Because the truth doesn’t sink.

Kyle Bacon (left) Dave Koch (right) Fiber Network Solutions' Network Operations Center

Fiber Network Solutions' Network Operations Center

Dave Koch, President, CEO & Chairman

Fiber Network Solutions, Inc.

Fiber Network Solutions, Inc.

Corporate Headquarters - Columbus, Ohio

The acquisition of Fiber Network Solutions by Cogent Communications was structured as an asset transaction rather than a standard equity purchase, resulting in the elimination of existing shareholder interests. The structure and documentation of the transaction form a central part of the evidentiary record presented on this site.

While he was incapacitated due to severe illness, under activities that demonstrate clear legal, ethical, and criminal misconduct, Koch was forcibly and unlawfully divested of control of his company, along with his 1.2 million shares.

FNSI was an eight-year-old Tier One Internet backbone — a mature, revenue-generating enterprise producing eight figures annually. In the late 1990s and early 2000s, technology companies were frequently valued using revenue multiples ranging from 20x to 100x, based on growth rates, profitability, and acquisition trends.

FNSI had been profitable for years and received consecutive unqualified audit opinions from KPMG. Based on these industry benchmarks, its estimated valuation fell between $200 million and $1 billion.

But in early 2003, instead of a standard equity transaction, the deal was camouflaged as an “asset sale” — a structure that nullified Koch’s 1.2 million shares and funneled value through a network of undisclosed and deliberately concealed mechanisms, including Exhibit 2.5, stripped of all schedules and buried in Cogent’s S-1 SEC registration as a “miscellaneous asset purchase.”

Combine the hidden Exhibit 2.5 with the authorship of Koch’s proxy given to Kyle Bacon because he was too ill to attend board or shareholder meetings. These are the bookends of a fraud. According to recently discovered forensic evidence, that proxy was authored by Bill Kelly, a Columbus, Ohio attorney Koch fired for cause two years prior.

The proxy and the concealed Exhibit 2.5 form the bookends of a calculated fraud: one conferring false authority, the other burying its paper trail. Together, they demonstrate both the intent to commit fraud and the conscious effort to conceal it.

“At the time, I trusted Kyle, States Koch. “I was too sick to even consider if I was concerned whether he would vote my shares in my best interest and not engage in any kind of self-dealing.”

The assumption of the conspirators' was simple: Koch wouldn’t survive long enough to uncover what had been done.

While in and out of the hospital and at home, Kyle Bacon made Koch believe that his absence caused the company to decline to a point that both business and personal bankruptcy were looming. Believing that Bacon was his trusted partner, Koch was manipulated during this vulnerable period to believe that Cogent Communications would rescue Koch by taking over the debt of FNSI, thereby negating the bankruptcy threat.

The applicable statute of limitations remains open under established federal tolling doctrines.

18 U.S.C. § 1001 — False statements and concealment of material facts

18 U.S.C. § 1510 — Obstruction of criminal investigations

18 U.S.C. § 1512 — Witness tampering and interference with evidence

18 U.S.C. § 4 — Misprision of felony

18 U.S.C. § 3282 — General federal statute of limitations (non-capital offenses)

18 U.S.C. § 1030(a)(2) — Unauthorized access to protected computers

18 U.S.C. § 1030(a)(5) — Intentional damage to protected computers

18 U.S.C. § 1030(b) — Conspiracy and attempt under the Computer Fraud and Abuse Act

18 U.S.C. § 1029 — Fraud involving access devices

This is the official site of Fiber Network Solutions, Inc. — and the federal whistleblower who exposed how it was stolen, buried, and erased from history. What follows is the true story of how it was built, and how its theft is finally being brought to light.

The June 17, 2025 news release exposed the smoking gun that connected all the dots — proving that Cogent Communications did not build a data center empire, but deployed one stolen from Fiber Network Solutions.

It implicates key players — Dave Schaeffer, Kyle Bacon, Diana Ritchie Thomas (formerly Diana Anderson), Vince Bacon, Jim Bacon, Bill Kelly, Craig Housley, and Inga Housley — as participants in a racketeering scheme consistent with violations of 18 U.S.C. § 1962 (RICO).

This release contains:

➤  Recorded admissions by former Cogent CIO Kyle Bacon

➤  The original 2001 FNSI brochure from the Internet Archive Wayback Machine

➤  Timeline proof of misappropriation and concealment

➤  Forensic evidence confirming board-level knowledge and insider

     stock sales exceeding $47 million

Read the full release here:

The compilation of forensic, documented and third-party archived evidence converge

The Fraudulent Acquisition of Fiber Network Solutions, Inc. (FNSI) by Dave Schaeffer and Cogent Communications (NASDAQ: CCOI)

For more than twenty years, the individuals who engineered the 2003 FNSI-Cogent transaction operated under the assumption that the passage of time had insulated their conduct from scrutiny. The evidentiary record now indicates that assumption is no longer valid.

Fiber Network Solutions, Inc. (FNSI) was a profitable, audited Tier One internet backbone provider co-founded by David J. Koch. In February 2003, during a period of documented medical incapacitation, FNSI was transferred to Cogent Communications through a transaction presented as an asset sale, eliminating Koch’s 1.2 million shares and removing the company from public disclosure as an operating business.

This site presents the documented evidentiary record of that transaction and its aftermath. The materials include contemporaneous corporate records, third-party publications, archived documents, recorded admissions, and formal whistleblower disclosures submitted to federal agencies, including the SEC, DOJ, FBI, and IRS-CI.

The record reflects a consistent pattern: asset transfer without equivalent shareholder consideration, concealment of transaction details, and the subsequent construction of a public narrative that omits FNSI’s operational history and authorship. These materials are organized chronologically and supported by primary-source documentation to allow independent verification.

This archive exists as a permanent, structured reference for regulators, investigators, and the public.

Case Overview

The Question of Consent

At the time of the February 26, 2003 transfer of Fiber Network Solutions, Inc., did David J. Koch possess the legal capacity required to provide informed consent, in light of contemporaneously documented severe physical and psychological impairments?

Kyle Bacon, VP & COO FNSI, / CIO Cogent Communications

Kyle Bacon, VP & COO FNSI, / CIO Cogent Communications

Kyle Bacon, VP & COO FNSI, / CIO Cogent Communications

Kyle Bacon, VP & COO FNSI, / CIO Cogent Communications

Kyle Bacon, VP & COO FNSI, / CIO Cogent Communications

Let's let Kyle Bacon tell us if Dave Koch was capable of giving consent.

If David J. Koch consented to the transaction, why is his signature not on the controlling document — Exhibit 2.5?

What was Fiber Network Solutions

Exploitation of the FNSI President, CEO & Chairman

Who Is Dave Koch?    Click Here to learn about Dave and his work.

The Deliberate and Orchestrated Financial Fraud

Where did Cogent Communications' Data Center Model Originate?

Kyle Bacon, (Former) CIO Cogent Communications

For more than two decades, Cogent Communications presented its colocation model as a proprietary innovation. It was not.

Cogent deployed a pre-existing, profitable data center architecture built by Fiber Network Solutions, Inc. — a company it acquired through fraud and then concealed as the true source of its model.

Before joining Cogent, Kyle Bacon served as Vice President and COO of FNSI under David J. Koch. He later participated in the fraudulent transfer of FNSI to Cogent, during which Koch — incapacitated by severe, life-threatening illness — was stripped of 1.2 million shares.

A timestamped 2001 FNSI brochure, preserved by the Internet Archive, confirms that this data center infrastructure was already operational and serving customers well before Cogent’s 2002 acquisition of PSINet assets.

Let's let Kyle Bacon tell us where Cogent's data center model came from.

A 160-page evidentiary report, supported by primary source documents, recordings, and contemporaneous records, identifies multiple independent bases under federal law for tolling and extending the statute of limitations for both civil and criminal claims arising from the 2003 transaction and its subsequent concealment. This report has been continuously supplemented with over three gigabytes of additional unpublished evidence provided to federal authorities.

These bases fall into two distinct but reinforcing legal frameworks: (1) the discovery rule, and (2) continuing and ongoing concealment.

Under the federal discovery rule, a statute of limitations does not begin to run until the injured party discovers — or, through reasonable diligence, should have discovered — the existence of the fraud and the resulting injury.

David J. Koch’s first documented indication that he had been defrauded occurred on or about January 30, 2025, when an email exchange with Kyle Bacon, combined with a review of archived corporate records, revealed the deliberate nature of the underlying transaction.

Prior to that date, the structure and consequences of the transaction — including the use of a proxy, the omission of material schedules, undisclosed distributions, and coordinated concealment — were not reasonably discoverable due to sustained and active concealment.

Under the discovery rule, any applicable limitations period did not begin to run before that date.

Continuing Concealment — Ongoing Tolling

The tolling analysis does not end with discovery. It extends to the present.

The schedules to Exhibit 2.5 of Cogent’s 2004 S-1 registration statement — documents that would disclose the full financial structure of the transaction — have never been produced.

Despite formal written demands and notice, Cogent Communications has refused to provide these materials.

On May 23, 2025, Cogent’s Chief Legal Officer, John Chang, confirmed in writing:

“You are not entitled to those materials and we are not obligated to provide those to you.”

This refusal constitutes a documented, ongoing act of concealment occurring in 2025.

Under the doctrine of fraudulent concealment, the statute of limitations is tolled for as long as the defendant continues to actively withhold material information necessary to fully discover the claim.

Because the Exhibit 2.5 schedules remain withheld, the concealment that began in 2003 has not been resolved.

Resulting Statute of Limitations Framework

Two independent conclusions follow:

First, under the discovery rule, no limitations period began prior to January 30, 2025.

Second, under continuing concealment, there is a legally supportable basis that the limitations period remains tolled to the present due to ongoing withholding of material information.

Each doctrine independently defeats a statute of limitations defense. Together, they establish a continuous and uninterrupted limitations framework extending into the present.

Key Case Law

Holmberg v. Armbrecht, 327 U.S. 392 (1946)

Klehr v. A.O. Smith Corp., 521 U.S. 179 (1997)

Merck & Co. v. Reynolds, 559 U.S. 633 (2010)

United States v. Smith, 740 F.2d 734 (9th Cir. 1984)

United States v. Arnold, 117 F.3d 1308 (11th Cir. 1997)

United States v. Levine, 457 F.2d 1186 (10th Cir. 1972)

Toussie v. United States, 397 U.S. 112 (1970)

Statutory Violations Referenced