Federal authorities are investigating Stephanie Phillips, a former top administrator in the Burlington School District, for allegedly embezzling nearly $1.8 million in school district funds across a 13-year span.
Phillips, who most recently served as the district’s executive director of teaching and learning, retired this spring. The Federal Bureau of Investigation executed a search warrant at Phillips’ home in Colchester last week in connection with the investigation, according to school district spokesperson Russ Elek.
In federal court documents, including search warrant applications, investigators said there is probable cause to believe that Phillips committed mail fraud, wire fraud and “theft concerning programs receiving federal funds” dating back to March 2013.
Phillips, investigators allege, created a false company called Leading and Learning Consultants of VT to steal at least $1,769,200 from the district. She submitted invoices to the school district for work she was required to do as part of her job, “allowing her to be paid twice for the same work,” and also created invoices for work she never delivered, investigators wrote in the documents.
“Based on my review of financial documents, business records, emails, and interviews, Leading and Learning Consultants of VT, LLC , appears to be a shell company created and controlled by Stephanie Phillips to allow Phillips to illegally obtain money from [the Burlington School District],” FBI special agent Eric Boyce wrote in an affidavit.
Phillips has not been charged with a crime. She could not immediately be reached for comment on Tuesday night.
In an email to the school community on Tuesday evening, superintendent Tom Flanagan wrote that the district identified “concerning financial discrepancies” after Phillips left her role and immediately reported them to authorities.
“We … have been fully cooperating with both local and federal investigating agencies,” Flanagan wrote. “We also immediately reviewed and strengthened our procurement and invoicing procedures, including putting tighter limits on individual spending.”
Flanagan said the district would work with an outside expert to help ensure the district’s finances are protected in the future. If the allegations against Phillips are borne out, he added, “our district and community are victims, and we will seek to recover all funds and bring them back to our students.”
Phillips, 57, worked for the Burlington School District for 28 years, Elek said. According to an online biography, Phillips began her career as a classroom teacher. In 2014, the school board appointed her as interim superintendent after then-superintendent Jeanne Collins resigned. Phillips has a master’s degree in education from Saint Michael’s College. In an interview with the Burlington Free Press in July 2014, Phillips said her father had been a superintendent of schools in Vermont
“Ms. Phillips was a long-time leader in our district who held significant responsibility for decades,” Flanagan wrote in his email. He said the district would likely not be able to provide more information until the federal investigation is complete.
“While all are innocent until proven guilty, this ongoing investigation into what may be a serious breach of trust and duty is very upsetting,” Flanagan wrote. “We will do our best to work through this together as a community while keeping our focus on serving our students.”
News of the investigation into Phillips was first reported by journalist Michael Donoghue of Vermont News First.
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