Federal authorities on Thursday unveiled criminal charges against Nevada contractor Stephen A. Kromer, accusing him of siphoning millions from a federally backed high-speed internet build near Lovelock and leaving the rural project stuck in neutral. The federal complaint lists counts that include embezzlement of government property, theft from a federal program, money laundering and presenting a false document. Prosecutors say more than $7.8 million meant for the build was diverted, stalling work and sending local officials scrambling for a Plan B.
Federal Complaint Spells Out Alleged Scheme
According to FBI Las Vegas, Kromer faces multiple felony counts tied to the Lovelock build, including embezzlement of government property, federal program theft, money laundering and presenting a false document. The FBI notice says the alleged scheme involved money transfers and paperwork intended to hide the diversion of funds that were earmarked for constructing high-speed internet in the Lovelock area. Because the project relied on federally funded programs, the case has shifted from being strictly a state matter to a broader federal probe.
State Investigation And Contract History
State authorities have been digging into related allegations for more than a year. The Nevada Attorney General’s Office filed felony theft charges in May 2025 against the owner of Uprise, identified in state filings as Steven Allen Kromer, alleging that millions were moved out of a Nevada Department of Transportation contract. The AG's press release states that NDOT paid roughly $9.125 million in 2023 to launch the fiber build and that investigators later found transfers from project accounts into Kromer’s personal accounts. Those 31 felony theft counts have moved forward alongside civil suits filed by subcontractors who say they never got paid for work on the project.
Federal Grant Collapse And Local Fallout
The upfront state payment was supposed to help leverage a U.S. Department of Agriculture ReConnect grant of roughly $27 million. That plan fell apart when the USDA pulled its approval after finding contract violations, leaving Pershing County without the promised high-speed upgrade. Las Vegas Review-Journal reporting and other local coverage documented halted construction, unpaid subcontractors and a contractor shutdown after the money vanished from the build. Residents and local leaders have since been pushing for other providers to step in while court fights over the original project continue.
Local Lawsuits And Efforts To Salvage The Build
Subcontractors and companies that worked on the job have filed civil suits seeking payment, and those cases are still moving through the courts alongside the criminal matters. Our Town Reno and The Pershing Post have chronicled how a smaller local provider has tried to plug some of the coverage gaps, but a full buildout of the original vision has yet to be finished. The outcome of the civil litigation could shape restitution and determine who ultimately ends up paying to complete the work if public funds cannot be clawed back.
What The Charges Mean Legally
Under federal law, money-laundering counts can carry penalties of up to 20 years in prison along with substantial fines, while statutes dealing with theft or embezzlement of government property and theft from federally funded programs carry their own potential prison terms, fines and forfeiture consequences. When investigators can trace the proceeds of an alleged scheme, prosecutors often seek asset forfeiture and restitution to recover funds. The Justice Department provides an overview in its DOJ guidance on money laundering, and the federal criminal code spells out the offenses and penalties in 18 U.S.C. § 641 and 18 U.S.C. § 666.
What Comes Next In Court
The new federal filing stacks on top of the state charges and the ongoing civil suits. Local reporting indicates Kromer has already appeared in state hearings while contractors keep pressing their claims in civil court, and local coverage says those state and civil matters remain active as federal investigators move forward. Kromer is presumed innocent under the law, and in the coming weeks prosecutors and defense counsel are expected to sort through evidence, court calendars and procedural next steps as both the state and federal pieces of the case play out.
For Lovelock residents, the federal charges are just the latest chapter in a multiyear saga of missed broadband promises and a project that never delivered. Local officials say they will keep chasing restitution and accountability while the courts decide who is responsible and what, if anything, can be recovered.
