Kromer pleads not guilty in federal Lovelock broadband case

Stephen Kromer, former owner of Uprise LLC, pleaded not guilty July 8 to 16 federal felony charges alleging he diverted nearly $8 million from a broadband project intended to bring high-speed internet service to rural residents near Lovelock.

Kromer waived a formal reading of the indictment during his arraignment in U.S. District Court in Las Vegas. His federal trial is currently scheduled for Sept. 14 before U.S. District Judge Richard F. Boulware II. Prosecutors and defense attorneys were ordered to file a joint report by July 30 stating whether they are prepared to proceed to trial, unless a plea agreement or other stipulation is filed before then.

The case involves a proposed $36 million fiber-optic network funded through the U.S. Department of Agriculture’s ReConnect Program. Uprise applied for the grant in 2022, proposing to construct the network for people living and working in the Lovelock area.

The USDA awarded Uprise a $27 million grant in June 2023. Under the agreement, Uprise was required to contribute another $9 million and place that money in a restricted account that could only be used for approved project expenses.

Federal prosecutors allege Kromer transferred approximately $7.8 million from that account into his personal bank account through 32 wire transfers made between May and November 2024.

The indictment further alleges that false accounting entries were created to make the withdrawals appear to be legitimate project expenses and that the information was later submitted to the USDA.

Authorities also allege Kromer moved more than $6.2 million into accounts at several cryptocurrency exchanges and converted the money into cryptocurrency.

The federal indictment includes one count of theft of government property, four counts of federal program theft, five counts of money laundering, five counts involving monetary transactions in property derived from criminal activity and one count of using a false document.

The Lovelock broadband network was promoted as a major infrastructure investment for an underserved rural area. The project has not been completed.

Kromer also faces a separate state criminal case involving 31 theft charges. That trial is currently scheduled for June 2027.

An indictment contains allegations, not findings of guilt. Kromer is presumed innocent unless proven guilty beyond a reasonable doubt.