Ex-Burlington schools official under federal investigation over alleged $1.77 million billing scheme
Court filings allege Stephanie Phillips used a sham consulting company to bill the district for about 13 years. She has not been charged.
BURLINGTON, Vt. — A retired top administrator in the Burlington School District is under federal investigation over allegations that she used a sham consulting company to collect at least $1,769,200 from the district over about 13 years, Seven Days reported, citing federal court filings.
Stephanie Phillips has not been charged with a crime. According to Seven Days, search warrant applications say investigators believe they have probable cause that she committed mail fraud, wire fraud and theft from programs receiving federal money, with the alleged conduct dating to March 2013.
The filings allege that Phillips billed the district through a business called Leading and Learning Consultants of VT, LLC for duties her own job already required, so she was paid twice, and also for work that was never done. In an affidavit, FBI Special Agent Eric Boyce said financial and business records, emails and interviews indicated the company was a shell she created and controlled, Seven Days reported.
District spokesperson Russ Elek told Seven Days that FBI agents searched Phillips' home in Colchester in October.
Phillips, most recently executive director of teaching and learning, left the district in the spring, both Seven Days and WCAX reported. Elek said she is 57 and spent 28 years with the district, starting as a classroom teacher. Seven Days reported she served as interim superintendent in 2014.
In a letter to the school community, Superintendent Tom Flanagan wrote that the district found "concerning financial discrepancies" soon after Phillips left and promptly alerted authorities, WCAX reported. Both outlets said the district is assisting investigators at the local and federal levels.
Flanagan said the district has tightened its purchasing and invoicing rules, including lower spending limits for any one employee, and will hire an outside expert, according to Seven Days. He said that if the allegations are proven, the district and community are victims, and the district will try to recover all the money for students.