A
Democrat, she was elected to the position of Agriculture Commissioner in November 2000. Controversy erupted less than a month into her term when she selected a new midway vendor for the
North Carolina State Fair, replacing a longtime vendor, who immediately filed suit against the state. In May 2001, allegations emerged of inappropriate use of campaign funds from her 2000 campaign.
Resignation and criminal charges After two campaign aides were
indicted and one
pleaded guilty to federal
fraud and
extortion charges,
North Carolina Governor Mike Easley asked Phipps to resign her position. On June 6, 2003, she resigned and was replaced by interim commissioner
Britt Cobb. In October 2003, Phipps was tried and found guilty of
perjury and
obstruction of justice charges; soon afterwards, she
pleaded guilty to five of the original 30 federal charges against her, including
fraud,
conspiracy, and
witness tampering. In March 2004, she was sentenced to four years in federal prison and served her sentence at
Alderson Federal Prison Camp in
West Virginia. While in prison, Phipps became friends with
Martha Stewart, who was also incarcerated there. While serving her sentence, Phipps taught English and other courses to her fellow inmates. She was briefly allowed out to attend her brother Kerr's funeral. == Later life ==