The founder of a charter school that operated in the Steeplegate Mall for two years has pleaded guilty in federal court to stealing over $73,000 in federal funds given to the school.

Stephanie Alicea, 49, of Boscawen pleaded guilty to one count of theft from a program receiving federal funds, according to the U.S. Attorney’s office in Concord. Alicea was the founder of the Capital City Public Charter School which operated in the former Bon Ton space in the mall during the 2018-19 and 2019-20 school years.

Based on the idea of service learning, an educational model that integrates community service with instruction, the school was greeted with enthusiasm as an example of how charter schools can take alternative approaches, including the decision to locate in the mostly-empty mall. The state Board of Education began to raise questions about the school’s financial records soon after it opened, pointing to missing state and federal financial audits and “excess” grant reimbursements.

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

Alicea oversaw the school’s finances and day-to-day operations. Capital City received federal charter school grant funds, to be used for education-related expenses.

In spring 2020, an external 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, according to a statement from the attorney’s office.

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

U.S. District Court Chief Judge Landya B. McCafferty scheduled sentencing for January 6, 2025.

The U.S. Department of Education’s Office of Inspector General and Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.