David Schaeffer, the founder and chief executive of Cogent Communications, has hauled Fulton Bank into federal court, accusing the lender of engineering a plan to sidestep foreclosure on a downtown Washington office building owned by an affiliate tied to him. The dispute centers on the smaller office property at 1705 DeSales Street NW and seeks damages plus a jury trial, opening a fresh front in what public records indicate is a broader fight over the building’s loan.
Inside the Federal Filing
Schaeffer’s complaint was filed in the U.S. District Court for the District of Columbia on March 25, 2026, and asserts fraud under federal diversity jurisdiction. The docket lists attorney Graeme Webster Bush and includes attachments such as a payments exhibit and a summons. Court records are publicly available via Justia Dockets & Filings.
What Schaeffer Says Happened
In the suit, Schaeffer alleges that Fulton Bank coordinated actions to avoid a foreclosure that he argues would have been detrimental to his affiliate’s ownership interests in the building. The complaint’s allegations and the identity of the property owner were laid out in coverage of the case. As reported by the Washington Business Journal, the building is owned by an affiliate of Schaeffer, and the complaint seeks damages tied to the alleged scheme.
Bank Fires Back With Its Own Case
The lawsuit follows a separate action filed earlier this year by Fulton Bank against 1705 DeSales Street LLC, which appears to press contract-based claims linked to the same loan. That February filing underscores how both sides are now pursuing competing legal strategies over the property and its financing. The bank’s docket entries are available on Justia Dockets & Filings.
The Building Behind the Battle
1705 DeSales is a modest downtown office building that shows up in commercial listings for small suites, a sign of its more compact scale compared with larger D.C. office towers. Schaeffer is the longtime founder and chief executive of Cogent Communications, according to company materials, and his profile places him among active commercial property investors in the city. Building listings and broker pages detail the address and available square footage, for example on CommercialSearch, while company background appears on Cogent Communications.
What Comes Next in Court
The complaint’s fraud claim and jury demand set the stage for a potentially drawn-out civil fight rather than a quick foreclosure sale, meaning the outcome could turn on how a judge reads the loan documents and evaluates evidence about intent. Remedies in disputes of this kind can range from monetary damages to injunctive relief, but any result will depend on the court’s interpretation of the contracts and the factual record. Filings and court calendars will offer the next clues as the case moves forward.
