LAS VEGAS, Nevada — A northern Nevada business owner pleaded guilty on Tuesday, October 27, in federal court to embezzling more than $7.8 million — yaani nearly eight million dollars, about Rs 69 crore at a rough conversion — from a federally funded high-speed internet project that was meant to connect the rural town of Lovelock, the US Department of Justice said.
Source: US Department of Justice, District of Nevada
Stephen A. Kromer owned Uprise, LLC, a former internet service provider based in Reno, Nevada, according to court documents cited by prosecutors. He pleaded guilty to one count of federal money laundering. Sentencing is scheduled for March 9, 2027, before US District Judge Richard F. Boulware II, and Kromer faces a maximum statutory penalty of 20 years in prison.
What the Lovelock Project was supposed to build
In 2022 the US Department of Agriculture (USDA) awarded Uprise a $27 million federal grant to construct a high-speed broadband network in rural Lovelock, Nevada, about 100 miles northeast of Reno. The grant came through the ReConnect Program, a federal program that promotes construction of high-speed internet networks in under-served rural areas across the United States. The full project was proposed at about $36 million.
As a condition of the grant, Uprise agreed to contribute approximately $9 million toward the cost of the Lovelock Project. Uprise obtained that money from the State of Nevada and deposited it into a separate financial account designated solely for the Lovelock Project and overseen by the USDA — the account prosecutors say was then raided.
How prosecutors say the money was taken
From May 2024 through November 2024, Kromer embezzled more than $7.8 million from the designated account by transferring the money to his personal bank account and falsely accounting for the transfers as expenditures for the Lovelock Project, according to court documents cited by the Justice Department. The Lovelock Review-Miner, the local newspaper for the Lovelock area, reported before the plea hearing that prosecutors alleged 32 wire transfers between May and November 2024, false accounting entries disguising the withdrawals as project expenses, and more than $6.2 million converted into cryptocurrency — allegations first set out in a 16-count federal indictment returned in June.
The Justice Department said the indictment alleged that Kromer then laundered the embezzled money by moving the proceeds from his personal bank account into accounts he held at various cryptocurrency exchanges, where the money was converted into cryptocurrency. Readers should note the distinction the courts draw: Kromer has now pleaded guilty to one money-laundering count; the wider indictment allegations were the prosecution case that led to that plea.
Lovelock is a small rural community about 100 miles northeast of Reno. The ReConnect money was meant to bring high-speed internet to homes and businesses that commercial providers had not served — the kind of connection rural families, farms, clinics and small trucking and logistics operators along Interstate 80 depend on. Prosecutors say the project money was instead diverted to a personal account.
What officials said
“Stealing public funds intended to connect rural communities is a direct assault on the taxpayers of Nevada,” said First Assistant US Attorney Sigal Chattah for the District of Nevada. “When individuals treat federal grants as personal piggy banks and hide stolen millions in cryptocurrency, they undermine public trust and rob citizens of critical infrastructure.”
FBI Las Vegas Special Agent in Charge Christopher S. Delzotto said the grants were intended to enhance broadband infrastructure in rural communities in Nevada and that, instead, the defendant “brazenly misappropriated these funds for personal gain”, adding that the guilty plea “ensures he will finally be held fully accountable for exploiting public resources to fund his private lifestyle”. USDA Rural Development Nevada State Director Alida Ceballos said fighting waste, fraud and abuse was essential to the agency's mission and thanked the Justice Department, the USDA Office of Inspector General and the FBI for their partnership.
The separate state case — and what happens next
The federal plea does not end Kromer's legal exposure. The Lovelock Review-Miner reported that he also faces a separate state prosecution involving 31 felony theft counts filed by the Nevada Attorney General's Office, announced in May 2025, alleging he diverted Lovelock Project money into his personal account; he previously pleaded not guilty in the state case. The newspaper reported that a Washoe County court hearing set for October 28 was vacated by stipulation and order, while a June 2, 2027, jury trial remained listed in that state case, and that he remained free on bail with GPS monitoring and house arrest conditions. The local paper also reported before the federal hearing that the proposed plea agreement would require repayment of nearly $8 million to the Nevada Department of Transportation.
In the federal case, the next step is sentencing on March 9, 2027, before Judge Boulware. A federal district judge will determine the sentence after considering the US Sentencing Guidelines and other statutory factors, the Justice Department said. The case was investigated by the FBI and the USDA Office of Inspector General and is being prosecuted by Assistant US Attorneys Steven Myhre and Skyler Pearson.