The Colorado Broadband Office canceled more than $100 million in fiber internet contracts awarded to Parker-based Maverix Broadband after uncovering an alleged misuse of taxpayer funds, officials announced Monday. According to interim executive director Alison Terry, the state froze payments, terminated active grants, and referred the case to the Colorado Bureau of Investigation and the U.S. Department of the Treasury’s Office of the Inspector General.
State Freezes $103 Million BEAD Contract Over Discrepancies
The canceled funds include $103 million awarded to Maverix under the federal Broadband Equity, Access, and Deployment (BEAD) program. According to state officials, the grants were intended to bring high-speed internet of at least 100 megabits per second to more than 15,000 households and businesses in small rural towns near the edges of the Front Range, including Kiowa, Livermore, and Walsenburg. State officials launched “enhanced monitoring” in June after receiving whistleblower complaints alleging that Maverix asked contractors to submit invoices for uncompleted work. Terry stated that an estimated $3.2 million went toward canceled invoices or unperformed work where funds were retained rather than returned to the state.
Bankruptcy Complicates Recovery of $9.17 Million Paid Out
Two other funding programs totaling $27.38 million remain in various stages of construction, with the state broadband office estimating that approximately $9.17 million was paid to Maverix prior to the payment freeze, according to Terry. Complicating matters further, Maverix had been in receivership since January after defaulting on a creditor loan and subsequently filed for Chapter 11 bankruptcy protection on August 31. Lawyers for Maverix declined to comment, and cofounder David Lindauer did not respond to requests for comment. Terry noted that the state cannot simply demand the funds back without navigating bankruptcy court proceedings.
Impact on Rural Communities Waiting for Fiber
In Livermore, a community that waited three years for fiber internet after Maverix secured a $2.2 million High Cost Support Mechanism grant in 2023, resident Tom Laupa investigated the stalled project. Laupa reported seeing buried polyethylene conduit pipes with open ends sticking out of the ground, lacking fiber-optic cables. Sarah Tuneberg, executive director of the Colorado Office of Information Technology, acknowledged that officials are limited by the receivership proceedings but emphasized that the primary goal remains connecting these unserved communities. The state plans to put the affected sites back out for bid, utilizing ongoing federal programs like BEAD to restart the deployment process.
Did you know?
Residents who suspect grant abuse can utilize the Colorado Broadband Office fraud hotline at 303-764-7558 to report suspicious activity regarding public infrastructure projects.
Frequently Asked Questions
What happened to the Maverix Broadband contracts in Colorado?
The Colorado Broadband Office canceled more than $100 million in contracts awarded to Maverix Broadband after an investigation revealed alleged misuse of taxpayer funds, unperformed work, and failure to return unspent grant money.
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Are the affected rural communities still getting high-speed internet?
State officials confirmed that unserved locations previously awarded to Maverix will be put back out for competitive bidding through programs like BEAD so that fiber internet deployment can resume.
Which agencies are investigating Maverix Broadband?
The Colorado Broadband Office referred the case to the Colorado Bureau of Investigation and the U.S. Department of the Treasury’s Office of the Inspector General following enhanced monitoring and whistleblower complaints.
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