Former Burlington school official linked to $1.8M federal fraud investigation

The Burlington School District said it is working with state, local and federal investigators.

Federal court records are shedding new light on a fraud investigation involving former Burlington School District administrator Stephanie Phillips, who is now the focus of a case involving nearly $1.8 million.

According to documents tied to a search warrant, investigators reviewed laptops Phillips had used while working for the district during searches carried out in the summer, followed by a search of her home last week. The affidavit outlines the materials authorities were seeking as part of the probe.

Phillips began working for Burlington schools in 2013 and retired this past spring. District officials said her role involved coordinating professional development for teachers. They also said the district later uncovered what it described as concerning financial discrepancies.

Court filings allege Phillips set up a fake company, Leading and Learning Consultants of Vermont, and used it to submit invoices beginning in 2013. The payments, often in amounts of a few thousand dollars, were allegedly billed through the bogus LLC over several years.

Investigators believe the invoices covered work that was either never performed or duplicated duties she was already carrying out as part of her district job. Authorities also suspect the money was spent on personal costs, including home improvements.

The Burlington School District said it is working with state, local and federal investigators. Phillips has not been charged with a crime, though federal mail fraud and wire fraud charges remain possible.