The former director of operations for Indiana Virtual School and Indiana Virtual Pathways Academy was found guilty of wire fraud by a federal jury following an eight-week trial. Two Carmel residents previously pleaded guilty for their roles in the scheme.
Phillip Holden, 65, of Middletown, fraudulently obtained more than $60 million in state education funding by submitting false documentation that showed more students attended the virtual schools than were actually enrolled between 2016 and 2018. In Indiana, school funding is tied to student enrollment numbers.
Carmel resident Thomas Stoughton, 77, founder of the two schools, pleaded guilty the day before his trial was set to begin to 58 counts of money laundering, 17 counts of wire fraud and one count of conspiracy to commit wire fraud. He faces up to 20 years in federal prison per fraud count and 10 years per money laundering count. His sentencing is set for March 11, 2027…