Charter school founder pleads guilty to embezzling $73G in federal funds

CONCORD - A Boscawen woman pleaded guilty to stealing more than $73,000 in U.S. Department of Education funds from the former Capital City Public Charter School in Concord.

Stephanie Alicea, 49, pleaded guilty to one count of theft from a program receiving federal funds.

Alicea was the founder of the Capital City Public Charter School ("Capital City") in Concord. Capital City offered classes to several dozen students during the 2018-19 and 2019-20 school years with Alicea overseeing the school's finances and day-to-day operations. Capital City received federal charter school grant funds, which were to be used solely for education-related expenses.

In spring 2020, an external auditor detected irregularities with Capital City's finances, according to a Tuesday statement from the U.S. Attorneys Office. Specifically, the auditor found that Alicea had spent some of the grant funds on expenses that were personal in nature, including gambling, dining, and travel.

In total, Alicea stole $73,253.36 in federal grant funds from Capital City.

Capital City closed after the 2019-20 school year, surrendered its charter in February 2021, and declared bankruptcy in March 2021.

The charge of Theft from a Program Receiving Federal Funds provides for a sentence of up to 10 years in prison, up to 3 years of supervised release, and a fine of up to $250,000.

Sentencing is set for Jan. 6.