FBI Investigates Stephanie Phillips, Former Burlington Schools Administrator

An inquiry is being conducted by federal authorities regarding Stephanie Phillips, a former top administrator in the Burlington School District, over accusations that she misappropriated close to $1.8 million of district money across a span of 13 years. The Federal Bureau of Investigation executed a search warrant at Phillips’ home in Colchester last week, according to school district spokesperson Russ Elek, marking a dramatic escalation in a probe first brought to light by journalist Michael Donoghue of Vermont News First.

Having retired this spring following a 28-year career within Burlington schools, Phillips most recently held the position of the district’s executive director of teaching and learning. Investigators allege in federal court documents that she created a shell company called Leading and Learning Consultants of VT, LLC, to siphon at least $1,769,200 from public education funds starting in March 2013.

How the Alleged Scheme Worked

According to FBI special agent Eric Boyce’s affidavit filed in federal court, the mechanics of the alleged fraud relied on double-billing for routine administrative duties. Investigators wrote that Phillips submitted invoices to the school district for work she was already required to perform as part of her salaried employment, allowing her to be paid twice for the same work. The affidavit further alleges she billed the district for consulting services and deliverables that were never actually provided.

Based on a review of financial documents, business records, emails, and internal interviews, investigators state there is probable cause to believe Phillips committed mail fraud, wire fraud, and theft concerning programs receiving federal funds. Phillips has not been formally charged with a crime. She could not immediately be reached for comment.

District Response and Institutional Fallout

In an email sent to the school community on Tuesday evening, Superintendent Tom Flanagan wrote that the district identified concerning financial discrepancies immediately after Phillips departed her post this spring. District leadership alerted authorities right away and turned over internal records.

Former Burlington school administrator investigated for embezzlement

We have been fully cooperating with both local and federal investigating agencies, Flanagan wrote. He added that the district immediately tightened its procurement and invoicing controls, instituted stricter limits on individual spending, and brought in an outside financial expert to audit and protect future district accounts.

Phillips holds a deep history in the local educational community. In 2014, the school board appointed her as interim superintendent following the resignation of then-superintendent Jeanne Collins. In an interview that same year with the Burlington Free Press, Phillips noted that her father had also served as a school superintendent in Vermont.

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Ms. Phillips was a long-time leader in our district who held significant responsibility for decades, Flanagan noted in his message to families. While all are innocent until proven guilty, this ongoing investigation into what may be a serious breach of trust and duty is very upsetting.

As the federal inquiry continues, school officials warn that further details will likely remain limited until investigators conclude their work. If the allegations are proven in court, district leadership vows to pursue full financial restitution on behalf of local students.