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.
These bases fall into two distinct but reinforcing legal frameworks: (1) the discovery rule, and (2) continuing and ongoing concealment.
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The Discovery Rule — Independent Tolling Basis
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.
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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.
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Resulting 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.
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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)
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Statutory Violations Referenced
18 U.S.C. § 371 — Conspiracy to defraud the United States
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
The information presented herein is based on firsthand evidence, authenticated recordings, public regulatory filings, and direct communications involving the named individuals. Every assertion is supported by documentary or testimonial evidence, consistent with whistleblower standards under federal law. This account is published in good faith and subject to full legal protections afforded to whistleblowers.
What Really Happened When Fiber Network Solutions, Inc. Was Acquired by Cogent Communications Holdings, Inc. in 2003?
What happened was a deliberate conspiracy to defraud the company's co-founder during a period of medical incapacitation.
BACKGROUND
KEY FACTS
ASSET STRIPPING
FNSI’s most valuable assets—five profitable colocation centers—were removed from the company’s corporate structure without fair consideration. These assets were captured by insiders including Kyle Bacon, Jim Bacon, Vince Bacon, Diana Ritchie Thomas, and Bill Kelly through controlled or affiliated entities.
CANNIBALIZATION OF FNSI
After the asset transfers, FNSI was left financially crippled and unable to satisfy creditor claims. Creditors were later induced to settle their claims for “pennies on the dollar,” believing the company was insolvent due to market forces—rather than insider-driven asset diversion.
ENRICHMENT OF INSIDERS
The individuals named above derived personal financial gain from the stripped assets, while legitimate creditors—including secured lenders—were deprived of full recovery.
ADMISSIONS BY KYLE BACON
In recorded conversations, Kyle Bacon confirmed the strategy of negotiating creditor debts down to minimal payouts after the assets had been removed, validating the intentional harm inflicted on FNSI’s creditors.
APPLICABLE LAWS AND VIOLATIONS
FRAUDULENT TRANSFERS
Under the Ohio Uniform Fraudulent Transfer Act (Ohio Rev. Code § 1336.04), any transfer made with actual intent to hinder, delay, or defraud creditors is voidable. Similar provisions exist under federal law, including 11 U.S.C. § 548.
CREDITOR FRAUD
Intentionally stripping assets to deny creditors repayment constitutes fraud actionable under common law, as well as under statutes such as Ohio Rev. Code § 2913.42 (Tampering with Records) when documentation has been falsified.
BANK FRAUD
Financial institutions, including Key Bank, were misled about FNSI’s financial condition and the security backing their loans. This conduct implicates 18 U.S.C. § 1344 (Bank Fraud), a federal felony offense.
CONCLUSION
The conduct described above constitutes a systematic plan by Kyle Bacon and his co-conspirators to defraud creditors and financial institutions. These facts, newly corroborated by direct admissions and asset tracing, further validate the pattern of financial crimes outlined in the primary whistleblower report – now expanded to 160 pages.
Recent evidence confirms that active efforts by Kyle Bacon, Jim Bacon, Vince Bacon, Diana Ritchie Thomas, Bill Kelly, Craig Housley, and Inga Housley to manipulate, deceive, and silence key witnesses—first emerging in December 2023—have continued through 2025.
Email records show that Craig Housley explicitly contemplated contacting Cogent Communications, and the timeline suggests that Craig and/or Inga Housley did so without authorization between December 11 and December 31, 2023. This likely triggered an alert within Cogent that led to a hush money payment by Kyle Bacon. Within days, Craig and Inga ceased all communication, later engaged in deletion of evidence, and began a pattern of suspicious financial activity.
Under federal law, every individual who knowingly joins a criminal conspiracy becomes legally responsible for all crimes committed by any co-conspirator in furtherance of that conspiracy. See 18 U.S.C. § 371 (Conspiracy to Defraud the United States); 18 U.S.C. §§ 1961–1968 (Racketeer Influenced and Corrupt Organizations Act, "RICO"). See also Pinkerton v. United States, 328 U.S. 640, 646–47 (1946); United States v. Turkette, 452 U.S. 576, 583 (1981); Salinas v. United States, 522 U.S. 52, 63–65 (1997).
TIME HAS NOT ERASED THIS FRAUD
FEDERAL WHISTLEBLOWER DECLARATION
AND RECOGNITION
This website and all content contained herein are formally published under federal whistleblower provisions to the United States Department of Justice (DOJ), Federal Bureau of Investigation (FBI), Securities and Exchange Commission (SEC), Internal Revenue Service Criminal Investigations Division (IRS-CI), and the United States Attorney’s Office.
Pursuant to the protections afforded by:
• 18 U.S.C. § 1513(e) – Retaliation Against a Whistleblower (DOJ/FBI)
• 18 U.S.C. § 1514A – Whistleblower Protection under the Sarbanes-Oxley Act (SEC)
• Section 922 of the Dodd-Frank Act, 15 U.S.C. § 78u-6 (SEC)
• 26 U.S.C. § 7623 – IRS Whistleblower Law (IRS-CI)
• The Whistleblower Protection Enhancement Act of 2012
• Relevant federal obstruction, retaliation, and witness tampering statutes
I hereby declare myself and Christopher R. Myers whistleblowers under federal law and invoke all rights, remedies, and protections afforded to whistleblowers, including but not limited to:
• Full confidentiality of identity and sources;
• Protection from retaliation, harassment, or reprisal;
• Eligibility for statutory whistleblower rewards;
• Right to submit additional evidence and receive updates as permitted by law.
This publication includes original evidence of criminal activity, securities fraud, bank fraud, obstruction of justice, corporate conspiracy, and concealment spanning a 22-year period. It is made in good faith, under penalty of perjury, for the purpose of triggering lawful investigation, enforcement, and prosecution where appropriate.
All individuals assisting with this report, including my partner, Christopher R. Myers and named contributors, are also protected under these same whistleblower statutes.
LEGAL DISCLAIMER (STATE & FEDERAL PROTECTIONS)
This website is published in good faith under the authority of federal whistleblower statutes and the Texas Citizens Participation Act (TCPA). All statements are grounded in firsthand knowledge, authenticated recordings, forensic evidence, regulatory filings, and substantial supporting evidence. Extensive documentation has been submitted to the FBI, SEC, and IRS-CI, including but not limited to a 160-page comprehensive whistleblower report. Any effort to suppress, intimidate, or retaliate against this communication will be treated as a violation of whistleblower protection laws and may trigger immediate civil or criminal consequences under applicable state and federal statutes.
- David J. Koch
Fiber Network Solutions, Inc. was founded by me—then a 40-year-old professional Airline Transport Pilot with extensive experience in business management, marketing, and sales—and Kyle C. Bacon, a 23-year-old recent college graduate with little to no practical work experience.
In recordings available on this website, Kyle Bacon clearly states that it was Dave Koch who built the company—that I was his mentor, a father figure, that none of it could have happened without me, and that he would not be where he is in life without my guidance. These admissions directly contradict the fabricated persona he later crafted, portraying himself as a child genius who single-handedly built FNSI—an intentional misrepresentation sustained over the past 22 years.
I, David J. Koch, was the co-founder, President, Chief Executive Officer, Board Chairman, Incorporator, and Registered Agent of Fiber Network Solutions, Inc. (“FNSI”)—one of the earliest Tier One Internet backbone providers established in North America and headquartered in Columbus, Ohio.
While I was incapacitated due to severe illness, I was forcibly and unlawfully stripped of control over the company I founded—along with my ownership of 1.2 million shares of stock. The circumstances surrounding this divestiture reflect not only profound breaches of legal and ethical duties, but also clear violations of federal criminal law.
Rather than a lawful corporate acquisition, a deliberate financial fraud was orchestrated by at least six individuals acting in coordination with Dave Schaeffer, CEO of a publicly traded company—Cogent Communications Holdings, Inc. (NASDAQ: CCOI)—and its internal officers.
Through a calculated scheme, insiders extracted corporate value while bypassing rightful shareholder entitlements and concealing material facts from regulators, investors, and creditors.
Instead of executing a lawful stock transaction, the conspirators engineered a disguised “asset sale” that nullified shareholder interests and redirected financial benefits through a sophisticated web of concealed transactions and undisclosed entities.
Believing I would not survive my medical crisis, they exploited my incapacitation to remove me and appropriate company assets for their personal gain. I was subsequently erased as a party to facilitate the continuation of a 22-year cover-up.
However, I survived—and the fraud evolved into an ongoing criminal conspiracy. Predicate acts supporting the concealment of the original fraud have continued through April 2025, in violation of 18 U.S.C. § 371 (Conspiracy) and 18 U.S.C. §§ 1503 and 1519 (Obstruction of Justice and Destruction of Evidence).
Cogent Communications failed to disclose the FNSI acquisition within the body of its S-1 Registration Statement filed with the Securities and Exchange Commission (SEC). Instead, the purchase of my company was buried within an unindexed exhibit, generically labeled as “miscellaneous assets,” with all schedules removed—concealing critical information, including the purchase price and the recipients.
Click Here to see a copy of Exhibit 2.5, available through the SEC's public archives.
The culmination of this concealment was the proxy I provided to my former business partner, Kyle Bacon, whom I trusted to act in my best interests—and to refrain from self-dealing—when voting my shares.
I later discovered that the proxy had not been authored by FNSI’s legitimate counsel, but instead by Bill Kelly, Esq.—an attorney I had previously terminated for cause under circumstances that prompted FNSI’s General Counsel and two outside attorneys to file a grievance with the Columbus Bar Association.
Metadata embedded within the proxy document confirms that it was authored by “WJKelly” of Porter Wright Morris & Arthur (PWMA) and created just one day before a pivotal meeting of FNSI’s Board of Directors. Extracted metadata attributes original authorship to William J. Kelly and confirms the law firm origin through template paths, system creation IDs, and other forensic markers.
The combination of Cogent’s buried Exhibit 2.5 and the unauthorized proxy—authored by an attorney terminated for cause two years earlier—demonstrates both the deliberate orchestration of the underlying fraud and the calculated concealment that ensured its success.
In his own recorded statements, Kyle Bacon admits to directly participating in the scheme. Evidence has since emerged indicating that Kyle Bacon, Jim Bacon, Vince Bacon, Diana Ritchie Thomas (formerly Diana Anderson), Bill Kelly, and others systematically stripped valuable assets from Fiber Network Solutions, Inc. (“FNSI”) prior to its transfer to Cogent. These actions harmed FNSI’s creditors, including financial institutions, vendors, and landlords. Based on recent corroborations, the pattern strongly suggests violations of state and federal laws prohibiting fraudulent transfer, creditor fraud, and potentially bank fraud. Inga Housley and Craig Housley were not involved in the initial 2003 transaction. Their involvement is alleged to have begun in late 2023.
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.
The FNSI - Cogent Fraud