UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~August~~January 1321, ~~2024~~2025

FTE NETWORKS, INC.

(Exact name of registrant as specified in its charter)

Nevada

001-38322

81-0438093

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

641 Lexington Avenue, 14th Floor

New York, NY

10022

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: N/A

(Former Name or Former Address, if Changed Since Last Report): Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01. Other Events

FTE Networks, Inc. (“FTE” or the “Company”), today issued a shareholder update. The full text of the letter from interim CEO Michael P. Beys follows.

Dear Shareholders:

On behalf of FTE and its subsidiary, US Home Rentals, LLC (“USHR” and along with FTE, the “Companies”), I would like to provide an update on ~~the~~recent ~~status~~positive ofdevelopments regarding FTE and USHR’s various litigations, which as ~~described~~you inknow ~~previous shareholder updates of March 25, 2022, May 23, 2022 and August 15, 2022. These litigations~~ have been athe primary focus of management’s activities and ~~a critical~~the ~~aspect~~main ofremaining ~~our~~prospects ~~work to preserve value~~ for ~~you,~~shareholder ~~our shareholders~~value. AsThis ~~the~~update ~~years~~is ~~have~~a ~~passed,~~follow up ~~the prospects~~ to ~~achieve~~my aletter ~~recovery for~~of ~~shareholders~~August ~~have~~13, ~~diminished~~2024, ~~but~~which weis ~~continue~~attached ~~our~~hereto, ~~work~~and touses ~~achieve~~terms ~~the~~previously ~~best~~defined ~~outcome~~in ~~possible~~that letter.

As ~~you know by now~~mentioned, ~~FTE~~there ~~has been the victim of two major frauds, and we~~ have been ~~seeking~~several ~~remedies~~positive ~~against~~developments in the ~~bad~~litigations ~~actors~~regarding ~~involved~~both ~~in each of~~ the ~~frauds~~Palleschi/Lethem toFraud ~~extract value~~ and ~~compensation from~~ the ~~major~~Singal/Szkaradek Fraud, ~~parties~~starting ~~that~~with ~~are~~the ~~liable~~first ~~for~~of the ~~damages~~two ~~caused by these~~ frauds.

First, ~~between~~on ~~2016~~October 29, 2024 FTE and ~~early~~its ~~2019,~~co-plaintiffs ~~Michael~~survived ~~Palleschi~~a motion to dismiss their complaint against Marcum LLP and ~~David~~its ~~Lethem~~partner Alan J. Markowitz, the Company’s ~~then-CEO~~former ~~and~~outside ~~CFO,~~auditors ~~perpetrated~~that aare ~~scheme~~alleged to ~~defraud~~ have knowingly participated in the ~~Company~~Palleschi/Lethem ~~out~~Fraud. See ofLateral ~~tens~~et ofal. ~~millions~~v. ofMarcum ~~dollars~~LLP et al., ~~with~~Index ~~the~~No. ~~alleged,~~154273/2023 ~~knowing~~(N.Y. ~~participation~~Sup. ofCt.). ~~its~~FTE ~~outside~~is ~~auditor~~seeking at$400M ~~the~~in ~~time,~~damages ~~Marcum,~~in ~~LLP~~the case, which ~~(the~~is ~~“Palleschi/Lethem~~by ~~Fraud”).~~far ~~This~~FTE’s ~~fraud~~single ~~ultimately~~largest ~~led~~prospect tofor ~~the~~a ~~near~~recovery ~~destruction~~for ofshareholders. ~~the~~The ~~Company~~case ~~and~~now ~~numerous~~proceeds ~~criminal and~~to ~~civil~~the ~~litigations~~discovery phase.

Second, on ~~starting~~September in27, ~~October~~2024 ~~2019,~~FTE asand its co-plaintiffs won a judgment against one of the ~~Company was~~MCA ~~still~~companies ~~recovering~~for ~~and~~providing ~~looking~~usurious loans to ~~rebound~~FTE ~~from~~in the course of the Palleschi/Lethem Fraud,. ~~the~~See ~~Company’s~~Lateral ~~USHR~~et ~~subsidiary~~al. ~~acquired~~v. aFunderz.net ~~residential real~~et ~~estate~~al., ~~portfolio~~Docket ~~from~~No. ~~Vision~~22 ~~Property~~CV ~~Management~~02170 (~~“VPM”~~S.D.N.Y.),. ~~which~~The ~~turned~~estimated value ~~out~~of tothe ~~have~~judgment ~~limited~~is ~~net~~over ~~value~~$9M, ~~because~~and ~~its~~a ~~unscrupulous previous~~trial ~~owners~~is ~~had~~scheduled ~~amassed~~for anApril ~~insurmountable~~2025 ~~amount~~for ofplaintiffs ~~high-cost~~to ~~debt,~~prove ~~engaged~~another $2.5M in ~~predatory~~damages. ~~housing~~Although FTE ~~practices~~previously ~~which~~assigned ~~had~~its ~~triggered a~~claims ~~litany~~in ofthe ~~claims~~case ~~and~~to ~~state~~its ~~attorney~~shareholder ~~general~~and ~~investigations~~creditor, ~~and~~Lateral ~~failed~~Investment toManagement, ~~service~~LLC ~~and~~(“Lateral”), FTE ~~maintain~~has ~~the~~a ~~homes~~sharing agreement in ~~the~~place ~~portfolio~~with ~~over~~Lateral anand ~~extended period~~stands to receive a portion of ~~time~~any funds collected.

~~At the center of this transaction was Suneet Singal~~Third, ~~who has been charged with fraud in unrelated matters by the U.S. Department of Justice (“DOJ”) and the U.S.~~ ~~Securities~~as ~~Exchange~~you ~~Commission~~may ~~(“SEC”)~~recall, ~~working~~Palleschi ~~with VPM’s previous owners Alex~~ and ~~Antoni~~Lethem ~~Szkaradek~~themselves, ~~Tom Coleman of Innovativ Media Group (“Innovativ”), current~~ FTE ~~director Joseph F. Cunningham, a prior FTE director, FTE~~’s ~~previous~~ ~~Interim~~ ex-CEO ~~Stephen M. Goodwin~~ and ~~several~~CFO ~~other~~who ~~Singal~~orchestrated ~~affiliates~~the ~~and~~Palleschi/Lethem ~~agents~~Fraud, ~~as part of what the Companies~~ have ~~alleged~~pleaded isguilty ato ~~fraud~~their crimes and ~~racketeering~~are ~~conspiracy~~awaiting ~~that~~sentencing. ~~has harmed~~ FTE ~~and~~intends ~~its~~to ~~shareholders~~work (with the ~~“Singal/Szkaradek~~relevant ~~Fraud”).~~law ~~All~~enforcement ~~of these~~authorities ~~alleged co-conspirators received shares~~ in ~~FTE,~~its ~~which~~capacity as ~~the~~a ~~Company~~victim isof ~~now~~their ~~seeking to claw back~~misconduct.

InFourth, having ~~the~~already ~~case~~reached ofa ~~the~~settlement ~~Palleschi~~in GS Capital v. FTE et al., Index No. 650626/~~Lethem~~2021 ~~Fraud~~(N.Y. Sup. Ct), ~~Palleschi and~~FTE ~~Lethem~~has ~~plead~~made ~~guilty~~all applicable payments to GS Capital under the ~~charges~~settlement ~~against~~agreement ~~them~~since asmy ~~more~~last ~~fully~~update, ~~described~~and ~~below.~~GS ~~The~~Capital ~~primary~~is ~~source~~now ofa ~~value~~supportive toand ~~FTE,~~collaborative ~~however,~~creditor ~~are~~of ~~claims~~FTE. ~~against~~It ~~Marcum~~bears ~~LLP,~~repeating ~~which~~that although GS Capital was among the ~~Company’s~~numerous ~~outside~~convertible ~~auditor~~noteholders ~~and~~that isloaned ~~alleged~~money to ~~have~~FTE ~~participated~~during inthe Palleschi/Lethem Fraud, the ~~fraudulent acts~~settled ~~perpetrated~~case between the two former adversaries was the result of a loan provided by ~~Palleschi~~GS ~~and~~Capital ~~Lethem~~to FTE in March 2020.

~~Specifically, the Company was among the~~There ~~plaintiffs~~have ~~that~~been ~~recently~~several ~~brought~~positive adevelopments $700 million lawsuit against Marcum, which alleges that Marcum and Alan J. Markowitz, the Marcum partner who was responsible for auditing FTE’s financial statements, materially assisted the fraud by helping falsify certain liabilities and revenue, allowed FTE to ignore material proposed adjustments in ~~violation of applicable accounting standards and generally turned a blind eye to~~ the ~~fraud.~~litigations ~~The~~relating ~~complaint asserts a dozen claims for fraud, other torts and breach of contract claims by several plaintiffs and seeks hundreds of millions in damages, of which $400M are attributable~~ to ~~FTE. The defendants brought a motion to dismiss~~ the ~~complaint,~~Singal/Szkaradek ~~which~~Fraud ~~was~~as ~~heard~~set ~~and~~forth ~~argued on May 15, 2024 and is pending decision~~below.

First, in FTE v. Szkaradek et al., Docket No. 22 Civ. 785 (WCB) (D.Del.), in the U.S. District Court for the District of Delaware, federal Judge Bryson denied the Szkaradek’s motion to appoint a receiver over FTE. The ~~SEC~~decision, ~~has~~dated ~~brought~~September ~~related~~3, ~~administrative~~2024, ~~charges~~represents the second time the Szkaradeks or their confederates – namely Tom Coleman of Innovativ Media Group, Inc. (“Innovativ”) – have unsuccessfully sought that remedy against ~~Markowitz~~FTE ~~for~~and ~~his~~now ~~participation~~likely precludes the Szkaradeks and Coleman/Innovativ from bringing such a motion again in the ~~FTE~~future. ~~fraud~~Also,1 ~~and~~on ~~last~~October ~~year~~15, 2024, Judge Bryson mostly denied the ~~SEC~~Szkaradeks’ motion for summary judgment, ~~brought~~and ~~similar~~recently ~~charges~~scheduled ~~against~~the ~~Marcum~~case for ~~related~~trial. Scheduled to start on July 14, ~~“systemic~~2025, ~~quality~~the ~~control~~trial ~~failures”~~will be FTE’s opportunity to prove that the Szkaradeks defrauded FTE and ~~professional~~breached ~~standards~~their ~~violations~~contract with the Company, ~~resulting~~ in ~~deficiencies~~connection ~~“impacting~~with ~~Marcum~~the Szkaradeks’s sale ~~entire~~of ~~public~~their ~~company~~allegedly ~~audit~~toxic, ~~practice~~debt-ladden real estate portfolio to FTE.”2

~~The second source of potential value relates~~Second, ~~to the Singal/Szkaradek Fraud which has also resulted~~ in ~~numerous~~cooperation ~~criminal~~with ~~and~~the ~~civil~~Attorney ~~litigations.~~General ~~The~~for ~~Singal/Szkaradek Fraud may even have involved~~ the ~~knowing~~Commonwealth ~~participation~~ of ~~Inmost~~Pennsylvania ~~Partners LLC~~ (~~“Inmost”)~~the ~~and Direct Lending Partners (~~“~~DLP~~PA AG”), ~~USHR’s~~ ~~major real estate creditors,~~ with whom ~~the~~FTE ~~Companies~~entered ~~are~~into a settlement in ~~several~~Commonwealth ~~active~~of ~~litigations~~Pennsylvania v. ~~Among~~Vision ~~other~~Property ~~things~~Management, ~~Inmost and its affiliates DSA Agent~~ LLC ~~and~~et DSal, ~~Agent~~Docket ~~LLC~~No. ~~are~~GD-19-014368 ~~alleged~~(PA toCt ~~have disposed~~ of Common ~~numerous assets in the USHR portfolio~~Pleas, ~~without~~Allegheny ~~the Companies’ consent~~County), ~~which~~FTE ~~the~~helped ~~Companies~~force ~~believe~~ the ~~lenders~~Szkaradeks ~~did~~to ~~not~~place ~~have~~their ~~proper~~FTE ~~title~~common orstock, ~~claim~~preferred ~~to,~~stock and ~~damaging~~promissory ~~the~~notes into ~~overall~~escrow ~~net~~with ~~value of~~ the ~~Company’s~~PA ~~real~~AG. ~~estate~~Since ~~assets.~~the ~~For~~PA ~~its~~AG ~~part,~~already ~~DLP~~has isan ~~alleged~~unliquidated tojudgment ~~have~~against ~~engaged~~the inSzkaradeks ~~predatory~~and ~~lending~~is ~~practices~~seeking into ~~illegally~~schedule ~~obtaining~~a ~~certain~~trial ~~creditors~~to ~~rights~~liquidate ~~against~~its ~~the~~damages ~~Companies,~~– aswhich ~~part~~are ofwidely aexpected ~~series of transactions~~ to ~~refinance~~exceed ~~tens~~$10M of– ~~millions~~this ofmoves ~~debt~~the ~~owed~~PA byAG ~~our predecessors,~~one ~~which~~step ~~was~~closer ~~unlawfully~~to ~~foisted~~taking ownership onof the ~~Companies~~Szkaradeks’ asFTE ~~part~~stock ofand ~~the Singal/Szkaradek Fraud~~notes.

1Third, on ~~https://www~~September 30, 2024 a federal court in Nevada dismissed the consolidated cases of Innovativ, et al.~~sec~~ v.~~gov~~ Beys, et al., 22 CV 1184 (JCM) and 22 CV 1362 (CDS), granting summary judgment for defendants FTE and its affiliates. Notably, the federal judge determined that plaintiff TTP8, LLC, the company of Suneet Singal who was charged with securities fraud by the SEC in 2019 and is awaiting trial on federal criminal fraud charges in California, never validly acquired shares in FTE. This means that Coleman/~~files/litigation/admin/2023/34-96995~~Innovativ’s purchase of 500,000 FTE shares from TTP8 was also not valid, and Innovativ is therefore not a shareholder of FTE.~~pdf~~

2Legally – ~~https://www~~and logically – the Nevada federal court’s ruling should have immediately resulted in dismissal of the (lower) Nevada state court’s case of Innovativ, et al.~~sec~~ v.~~gov/litigation/admin/2023/34~~ FTE, et al., Case No. A-~~97773~~22-849188-B (District Court, Clark County, Nevada).~~pdf~~ However, the local judge, Joanna S. Kishner, refuses to accept the ruling of the higher federal court, the plaintiff’s resulting lack of standing, her lack of subject matter jurisdiction (because according to her own earlier order, dated June 30, 2022, the Delaware federal court has “exclusive jurisdiction to resolve disputes about the propriety of the Szkaradeks’ purported ownership of the FTE stock [and] their attempt to exercise and enforce their shares of FTE stock”) and a litany of other problems with the case. Instead, Judge Kishner held a trial of the case starting on January 6, 2025, ignoring relevant facts and applicable law and making one improper ruling after another which FTE will likely have to challenge over further years in the higher appellate courts. FTE and its affiliate defendants are taking all necessary actions to counter Judge Kishner’s logical, legal and factual inconsistencies and errors, including moving for a mistrial and to disqualify the judge. Sitting FTE director Joseph F. Cunningham is a co-plaintiff in the Nevada state case, meaning that he has affirmatively sued the very corporation (FTE) to which he owes fiduciary duties, including a duty of loyalty. For this as well as other wrongful and disloyal acts, FTE has sued Cunningham for breach of fiduciary duty, racketeering (with the likes of Singal, Coleman and others) and other malfeasance.

~~The~~Fourth, ~~following~~FTE isv. aSingal ~~non-exhaustive~~et ~~list~~al., ofDocket ~~litigations~~No. ~~stemming~~22 ~~from~~Civ. ~~the~~5960 ~~Palleschi/Lethem~~(JHR) ~~Fraud~~(S.D.N.Y.), ~~and~~in which the Company has sued Singal~~/Szkaradek~~, ~~Fraud~~Coleman, ~~with~~Innovativ, Cunningham ~~brief~~and ~~updates:~~others for fraud and racketeering among other things, is still pending.

●Fifth, FTE Inrecently ~~U.S.~~settled v.Henderson ~~Palleschi~~ et al., ~~Docket No~~v. 21Vision CRProperty 454 (CM) (S.D.N.Y.), the federal criminal case against Palleschi, Lethem and another defendant pending in the U.S. District Court for the Southern District Of New York (“S.D.N.Y.”), Palleschi pleaded guilty to all charges on August 22, 2023, Lethem did the same on May 11, 2023, as did the other defendant in June 2023. In a related state criminal case brought by the New York County District Attorney’s Office, Palleschi pleaded guilty on June 9, 2023, and Lethem had previously done so as well. The defendants are awaiting sentencing on their federal criminal convictions. The related SEC case against Palleschi and Lethem, Docket No. 21 CV 530 (M.D. Fla.) is still pending but stayed until the completion of the criminal cases against them. ● FTE and its subsidiaries, along with Lateral Investment Management, LLC and its affiliates (collectively, “Lateral”), are plaintiffs in two active lawsuits in federal and state court in New York against various merchant cash advance (“MCA”) companies who provided usurious loans to FTE in the course of the Palleschi/Lethem Fraud. See Lateral et al. ~~v. Funderz.Net et al.~~, ~~Docket~~Case No. 2220 CV ~~02170~~12649 (SE.D.~~N.Y.)~~ ~~and Lateral et al~~Mich. ~~v. Reich et al., Index No. 656791/2021 (N.Y. Sup. Ct.~~)~~. These lawsuits assert claims for racketeering violations and conspiracy against the lenders on the basis of collection of unlawful debt and wire fraud~~, ~~among~~a ~~other~~Michigan class ~~things.~~action ~~Discovery has begun~~ in ~~these~~federal ~~lawsuits,~~court ~~and~~regarding ~~should~~ the ~~MCA defendants ultimately be found liable, FTE would be entitled to a share of the treble damages and attorneys~~Szkaradeks’ ~~fees.~~alleged ●fraudulent Ashousing toscheme ~~the numerous convertible noteholders who had provided loans to FTE during the course of the Palleschi/Lethem Fraud, FTE owed approximately $10.4 million~~ in ~~principal,~~that ~~interest and penalties as of late 2022~~state. ~~The largest among these are (a) St. George Investments LLC, who obtained judgment against~~ FTE innow ~~Utah~~expects ~~state court based on an arbitration award in the amount of approximately $2.8 million, (b) Auctus Fund, LLC,~~ to ~~whom approximately $1.698 million was owed, and (c) GS Capital Partners, LLC, who obtained~~ settle a ~~judgment~~similar ~~against~~consumer ~~FTE~~fraud inclass ~~May~~action ~~2023~~ in ~~the~~New ~~amount of $2.934 million.3 Based on a written opinion of counsel~~Jersey, ~~dated~~Jordan ~~November~~et 21, 2022, and the analysis of an expert retained to review the high interest rates charged under the convertible notes, the notes would likely be found to be criminally usurious, void ab initio and unenforceableal. ~~Accordingly, FTE has removed these debts from its financial statements~~v. ~~Earlier~~Vision ~~this~~Property ~~year~~Management, ~~FTE~~LLC ~~entered~~et ~~into a settlement with GS Capital~~al. ~~● FTE has settled or otherwise disposed of several other matters stemming from the Palleschi/Lethem Fraud~~, ~~including~~Docket ~~Southern Holdings 3, LLC v. FTE, Index~~ No. ~~656668/2019~~ C-30-18 (N.YJ. Sup. Ct~~), a case relating to the nonpayment of an office lease in Naples, Florida entered into by the perpetrators~~. ~~● In FTE v. Singal et al., Docket No. 22 Civ. 5960 (JHR~~) ~~(S.D.N.Y.)~~, ~~FTE~~on ~~has~~substantially sued Singal, Coleman, Innovativ, Cunningham and Goodwin – FTE’s current director and prior Interim CEO, respectively – and several of Singal’s other corporate and individual affiliates, among others, in connection with the ~~Singal/Szkaradek~~same ~~Fraud and racketeering conspiracy~~terms. ~~FTE~~The ~~recently amended our complaint to include the fact that in the fall of 2019, Singal, along with his co-conspirators on the board and in the management of FTE, fraudulently induced the~~ Company tois ~~issue~~endeavoring ~~roughly 20% of its common stock~~ to ~~him~~settle ~~and~~yet ~~his~~another ~~affiliates.~~consumer ~~FTE~~fraud ~~has~~litigation ~~already~~brought against ~~canceled that fraudulently-issued stock by board resolution, and~~ the ~~litigation~~Szkaradeks ~~seeks additional relief~~ and ~~other,~~their ~~monetary~~companies ~~damages.~~in ~~Singal’s~~Cook ~~legal troubles are not limited to FTE’s claims against him. In U.S. v. Singal~~County, ~~Docket No. 22 CR 0068 (KAM) (E.D. Cal.)~~Chicago, ~~a federal criminal case against Singal for a separate fraud not related to the Singal/Szkaradek Fraud,4 the trial is scheduled to begin on February 3, 2025 in the U~~Illinois.S. District Court for the Eastern District of California. Singal had previously been charged by the SEC in December 2019 for yet another fraud and agreed to a multimillion-dollar penalty and a long-term bar from the securities industry.5

~~3 See~~Finally, GSFTE ~~Capital~~and v.its ~~FTE~~affiliates ethave ~~al.,~~appealed ~~Index~~a ~~No.~~Pennsylvania’s ~~650626/2021~~state ~~(N.Y.~~court ~~Sup.~~grant ~~Ct).~~of ~~While~~summary GSjudgment ~~Capital~~against ~~was~~them ~~among~~in ~~the~~DLP ~~numerous~~Lending ~~convertible~~v. ~~noteholders that~~Beys ~~loaned~~et ~~money to FTE during the Palleschi/Lethem Fraud~~al., ~~the~~Docket ~~referenced~~No. ~~judgment~~C-48-CV-2021-09442 ~~resulted~~(PA ~~from~~Ct aof ~~loan~~Common ~~provided~~Please, toNorthampton ~~FTE in March 2020~~County).

4As we ~~https://www~~have previously written to you, all of the litigations described here are matters of public record, and we invite and welcome you, our shareholders, to access the public dockets for yourselves.~~justice~~ Also, given these many ongoing litigations, you may be contacted by one or more of the alleged bad actors described above that FTE and its affiliates are adverse to and that FTE has alleged have acted unlawfully.~~gov/usao-edca/pr/el-dorado-hills-man-indicted-fraud-against-merchant-cash-advance-companies~~

5We continue ~~https:~~to work on your behalf to salvage as much of the value that has been destroyed by the bad actors in both the Palleschi/Lethem Fraud and the Szkaradek/~~www~~Singal Fraud and to hold the wrongdoers responsible for the damage they have caused.~~sec~~ As always, we would be happy to answer any questions or concerns you may have to the best of our ability.~~gov/litigation/admin/2021/ia-5783.pdf~~

● In FTE v. Szkaradek et al., Docket No. 22 Civ. 785 (WCB) (D. Del.), FTE has sued Alex and Antoni Szkaradek in federal court in Delaware in connection with the Singal/Szkaradek Fraud and racketeering conspiracy, since the contract underlying their sale of the USHR real estate portfolio to FTE has a provision requiring any disputes to be litigated in Delaware. The Szkaradeks have asserted counterclaims against FTE, and the case is currently in discovery and other motion practice. ● In a retaliatory litigation in Nevada, several of the Singal/Szkaradek Fraud and racketeering co-conspirators have brought three separate lawsuits in state and federal courts against FTE, certain of its officers, and certain other shareholders, which we are defending and countering vigorously. The plaintiffs in those cases have been Innovativ (with Coleman as its principal), Alex and Antoni Szkaradek, Cunningham (a still current FTE director) and Singal’s corporate affiliate, TTP8, LLC. In response, we have challenged the legitimacy of the plaintiffs’ FTE shareholdings – since their shares in FTE were acquired by virtue of the Singal/Szkaradek Fraud – and have sought to dismiss the Nevada cases. While defending the Nevada litigation has caused the Company to expend significant resources, we have taken steps to protect FTE’s ability to recover its litigation costs and expenses once we prevail in the litigation. ● In DLP Lending v. Beys, et al., Docket No. C-48-CV-2021-09442 (PA Ct of Common Pleas, Northampton County), real estate lender DLP Lending has sued FTE, USHR, Alex and Antoni Szkaradek, among others, for breach of contract in connection with refinancings of DLP’s loans in late 2020. FTE and USHR have brought counterclaims against DLP and cross claims against Inmost and its affiliates, for their respective roles in financing and enabling the Szkaradeks’ illegal conduct and committing other unlawful acts potentially giving rise to lender liability.6 ● FTE and USHR continue to work cooperatively with state attorneys general (AG’s) and other plaintiffs’ counsel who have also collaterally sued the Companies in connection with the Szkaradeks’ illegal real estate scheme. In one notable case involving the Pennsylvania AG, Docket No. GD-19-014368 (PA Ct of Common Pleas, Allegheny County), the Companies reached a favorable settlement with the Pennsylvania AG. The Companies are also in the process of settling with plaintiff class actions in Michigan7 and New Jersey,8 which litigations also arise out of the Szkaradek’s illegal conduct.

All of the litigations described here are matters of public record, and we have cited the public docket where possible and invite you, our shareholders, to access the dockets for yourselves.

As we have previously written to you, given these many ongoing litigations, you may be contacted by one of the bad actors mentioned above that FTE is adverse to and that FTE has alleged has acted unlawfully.

We continue to work on your behalf to salvage value in challenging circumstances and to hold the bad actors accountable for the damages they have caused. We would be happy to answer any questions or concerns you may have to the best of our ability.

Sincerely,

Michael P. Beys

Interim CEO

6FTE and USHR also brought crossclaims against the Szkaradeks themselves in this case but these claims were dismissed, giving rise to the previously discussed litigation against them in Delaware.

7See Henderson et. al. v. Vision Property Management, LLC et. al., Case No. 2:20-cv-12649 (E.D. Mich.).

8See Jordan et. al., v. Vision Property Management, LLC et. al., (N.J. Sup. Ct. Docket No. C-30-18).

Forward Looking Statements

This letter may contain “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plan,” “believe,” “will,” “intends,” “expects,” “anticipate” and may include statements regarding matters that involve known or unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance or achievements to differ materially from results expressed or implied by this release. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the outcome of pending litigation, the future of our business, future plans and strategies, projections, anticipated events, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. These risk factors and others are included from time to time in documents we file with the Securities and Exchange Commission, including but not limited to, our Form 10-Ks, Form 10-Qs and Form 8-Ks. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this letter is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

About FTE Networks, Inc.

FTE Networks, Inc. (“FTE”) through its subsidiary US Home Rentals, owns, operates and invests in affordable rental housing in tier 3 and 4 markets.

For more information, please contact: ir@ftenet.com

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	FTE NETWORKS, INC.
	(Registrant)
Date: August 13, 2024		/s/ Michael P. Beys
Date: January 21, 2025		/s/ Michael P. Beys
	Name:	Michael P. Beys
	Title:	Interim Chief Executive Officer

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