Nevada Business Owner Admits to $7.8 Million Embezzlement

A northern Nevada business owner, Stephen A. Kromer, has pleaded guilty to embezzling over $7.8 million from a federal grant project designed to improve broadband access in rural areas. Kromer, who owned Uprise, LLC, a former internet service provider based in Reno, Nevada, admitted to the embezzlement from 'The Lovelock Project,' a federally funded high-speed internet construction initiative near Lovelock, Nevada.

The U. S. Department of Agriculture (USDA) awarded Uprise a $27 million federal grant in 2022 to construct the broadband network.

As part of the agreement, Uprise was required to contribute approximately $9 million towards the project, which was funded by the ReConnect Program. This program aims to enhance internet infrastructure in under-served rural areas across the United States.

From May 2024 through November 2024, Kromer transferred more than $7.8 million from the designated project account to his personal bank account, falsely recording these transfers as legitimate expenditures for the Lovelock project. According to court documents, Kromer then laundered the embezzled funds by moving them into accounts at various cryptocurrency exchanges, converting the money into cryptocurrency.

Kromer pleaded guilty to one count of federal money laundering. His sentencing is scheduled for March 9, 2027, before United States District Judge Richard F. Boulware II. He faces a maximum statutory penalty of 20 years in prison.

The case was investigated by the FBI and the USDA Office of Inspector General. First Assistant United States Attorney Sigal Chattah for the District of Nevada emphasized the impact of such fraudulent activities, stating that "stealing public funds intended to connect rural communities is a direct assault on the taxpayers of Nevada." Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office noted that Kromer's actions undermined public trust and deprived citizens of critical infrastructure.

The prosecution is being handled by Assistant United States Attorneys Steven Myhre and Skyler Pearson. The investigation and prosecution efforts are part of a broader initiative by the Department of Justice's Fraud Division, which focuses on combating fraud against federal programs as part of a government-wide effort led by Vice President J.D. Vance.