The Radical Reading Room

A federal criminal trial of Phillip Holden, former director of Indiana Virtual School, began Tuesday, Oct. 27, in Indianapolis, with Holden as the sole defendant. He faces 17 counts of wire fraud and one count of conspiracy to commit wire fraud. The case concerns allegations that Indiana Virtual School and the related Indiana Virtual Pathways Academy exaggerated enrollment to obtain more than $44 million in state funding.

The trial had been expected to include Holden and school founder Thomas Stoughton, but Stoughton pleaded guilty on Monday, the day before proceedings began. The reports identify Holden as the school’s director and say he was responsible for areas including enrollment and attendance. Holden’s trial is proceeding separately following Stoughton’s plea.

According to the indictment and prosecutors’ account described in the reports, the schools’ enrollment figures were inflated to bring in state funding based on student counts. Prosecutors allege that public money was then used to pay for-profit companies owned or controlled by Stoughton. The allegations are the basis of the federal case; the reports do not describe them as findings reached at trial.

Stoughton’s guilty plea came as the case moved forward against Holden, who is charged with fraud and conspiracy. The reports describe the trial as beginning on Oct. 27, but provide no verdict or other outcome for Holden. The allegations against him therefore remain unresolved in the coverage available at the start of the proceedings.