Nevada ISP Owner Admits Laundering $7.8 Million From USDA Rural Broadband Grant

A former Nevada internet service provider owner has pleaded guilty to laundering more than $7.8 million intended for a federally funded rural broadband build, the Department of Justice announced Tuesday, November 2, 2026.

The defendant is Stephen A. Kromer, former owner of Reno-based Uprise LLC. He admitted to diverting money earmarked for the Lovelock Project, a proposed high-speed internet network serving rural communities near Lovelock, Nevada, a town roughly 100 miles northeast of Reno.

The figures at the center of the case are large. The Lovelock Project received a $27 million grant in 2023 through the U.S. Department of Agriculture's ReConnect Program. Kromer admitted to laundering more than $7.8 million of that money — close to 29 percent of the total award.

What does the plea change for rural broadband operators?

For practitioners in the subsidized broadband sector, the case is a warning shot about grant oversight. ReConnect money arrives with federal strings attached, and the DOJ has now demonstrated willingness to pursue criminal money-laundering charges when those funds move off project.

Uprise LLC was based in Reno, the largest city in northern Nevada. The project it was meant to deliver sat far outside it, near Lovelock in Pershing County-style rural terrain where private capital rarely builds fiber without subsidy. The gap between the grant's purpose and its alleged use is the core of the government's case.

Kromer pleaded guilty, which means the underlying facts were admitted rather than merely alleged. The DOJ announced the plea Tuesday from Washington. A sentencing date and restitution terms were not part of the announcement as reported.

Why the ReConnect Program matters here

The USDA's ReConnect Program is one of the main federal vehicles for rural broadband deployment in the United States. It awards grants — and grant-loan combinations — to operators that commit to building high-speed networks in areas the USDA deems underserved.

The Lovelock Project fit that profile. It was designed as a proposed high-speed internet network serving rural communities near Lovelock, about 100 miles northeast of Reno. The $27 million award landed in 2023, during a period of expanded federal broadband spending.

That context matters for the sector. Every dollar laundered out of a ReConnect award is a dollar that does not become fiber, electronics, or labor in a community the program exists to serve. In a town the size of Lovelock, $7.8 million represents a substantial share of what a modern fiber network would cost to construct.

How the diversion came to light

The DOJ announcement, made Tuesday, November 2, 2026, disclosed the plea and the headline amount. The charging documents, filed in federal court and referenced through the U.S. Attorney's office for the District of Nevada, describe the laundering of more than $7.8 million from the grant proceeds.

Money laundering, as a charge, is distinct from simple embezzlement. It alleges that the defendant moved illicitly obtained funds through transactions designed to conceal their origin. Kromer admitted to that conduct as part of his plea.

What comes next

Kromer's guilty plea resolves the criminal liability question, but the consequences for the Lovelock Project itself remain an open question. The proposed network near Lovelock was the intended beneficiary of the $27 million ReConnect grant, and the fate of that build — whether it proceeds, is re-awarded, or stalls — will be watched by rural operators and USDA program administrators alike as sentencing proceeds.