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# Colorado Cancels $100 Million BEAD Award After Finding Misuse of Funds
- URL: https://broadbandbreakfast.com/colorado-cancels-100-million-bead-award-after-finding-misuse-of-funds/
- Published: 2026-09-22T15:31:41.000Z
- Updated: 2026-10-15T21:48:46.000Z
- Description: The state is rebidding the 10,000 affected locations
- Author: Jake Neenan
- Tags: BEAD, Colorado, maverix broadband, CBO, NTIA, Brandy Reitter, #with-siderail

WASHINGTON, Sept. 22, 2026 – Colorado’s broadband deployment efforts have suffered a setback.

The Colorado Broadband Office has canceled more than $100 million in grant funding to local ISP Maverix Broadband, the agency said Monday.

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That includes six active grants and a $103 million award under the Broadband Equity, Access, and Deployment program.

CBO said [in a release](https://oit.colorado.gov/press-release/colorado-takes-action-to-protect-taxpayer-funds-following-broadband-grants-inquiry?ref=broadbandbreakfast.com) that it received two whistleblower reports about misuses of grant funds in late May and immediately froze Maverix’s active grants. 

The state opened an inquiry that it said ultimately found evidence of “financial mismanagement and misuse of grant funds including payments for services and materials that were not received, and unpaid vendors.”

Maverix founder **David Lindauer** did not immediately respond to a request for comment.

The Colorado-based ISP filed for bankruptcy last month, before CBO could cancel the grants and recover what it says was improperly spent money.

The agency said it would have to pursue $3.2 million in Maverix’s bankruptcy proceedings. That’s $2.5 million from federal programs and $700,000 in state money.

Maverix won the most BEAD money in Colorado, nearly a quarter of the state’s $420 million in deployment spending. The ISP was slated to serve about 10,000 homes and businesses with fiber.

Overall, Colorado is looking to serve about 96,000 locations through BEAD, roughly split between fiber and satellite. 

CBO said in its release that it hadn’t signed a contract with Maverix or disbursed any BEAD funds to the company. 

The state is going to rebid the dropped locations in the hopes another provider will scoop them up. The National Telecommunications and Information Administration, had as of June worked to address similar refused contracts in about a dozen states.

“While I’m proud of the CBO team’s efforts and reassured to see our safeguards working, I’m disappointed that this could delay high-speed internet access to rural Coloradans as we seek to find a new vendor,” Colorado Chief Information Officer **Sarah Tuneberg** said in a statement.

The announcement comes a week after former CBO executive director **Brandy Reitter** stepped down abruptly.

She told Broadband Breakfast over the weekend that for now she was focusing on her next opportunity, which she hasn’t revealed yet.

“I loved my work at CBO. It was an excellent experience despite all the changes at the national level. Colorado has some of the best partnerships in the country,” she said. “I felt very lucky in my role.”