Reno business owner Stephen A. Kromer pleaded guilty Tuesday to one count of federal money laundering for embezzling more than $7.8 million from a U.S. Department of Agriculture grant project, according to a Department of Justice news release. Kromer owned Uprise, LLC, a former internet service provider that received a $27 million ReConnect Program grant in 2022 to build a high-speed broadband network in Lovelock, about 100 miles northeast of Reno.
As a condition of the grant, Uprise agreed to contribute approximately $9 million from the State of Nevada, which was deposited into a designated account overseen by the USDA. From May through November 2024, Kromer transferred more than $7.8 million from that account to his personal bank account and falsely recorded the transfers as project expenditures.
Christopher S. Delzotto, special agent in charge of the FBI Las Vegas Field Office, said Kromer exploited trust to line his pockets. "The grants were intended to enhance broadband infrastructure in rural communities in Nevada. Instead, the defendant brazenly misappropriated these funds for personal gain," Delzotto said in the release.
Kromer is scheduled to be sentenced March 9 and faces a maximum statutory penalty of 20 years in prison.
Sources: Las Vegas Review-Journal
Original reporting: 8 News Now →
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