Ex-New Mexico Lawmaker Convicted in School Funds Kickback Scheme

A former high-ranking Democratic legislator in New Mexico has been convicted on dozens of federal charges for orchestrating a scheme that diverted public school funds to a friend's company in exchange for kickbacks.

Jurors delivered the verdict on Friday after a trial that featured testimony from former colleagues, investigators, and tax experts. Sheryl Williams Stapleton, who chose not to testify in her own defense, now faces up to 20 years in federal prison at her sentencing.

The 69-year-old was indicted in March 2024 on more than three dozen counts, including bribery, mail fraud, money laundering, and conspiracy to defraud the federal government. These federal charges were in addition to state-level accusations of money laundering and racketeering filed in 2021, with that trial scheduled for October.

Williams Stapleton, first elected to the state House in 1994, served as majority leader and also worked as an administrator for Albuquerque Public Schools, the state's largest district. She resigned from the legislature two days after search warrants were executed at her home in the summer of 2021 and was subsequently fired by the school district.

Prosecutors said the district paid over $3 million to Robotics Management Learning Systems LLC, a Washington, D.C.-based company owned by her friend and co-defendant, Joseph Johnson. Most of that money came from federal funds intended for vocational education programs. As the district's career and technical education director, Williams Stapleton was accused of ensuring those funds flowed to Robotics and of shepherding the company's invoices through the procurement process.

In return, Johnson allegedly provided blank checks to Williams Stapleton, who wrote approximately 230 checks totaling over $1.15 million for her own benefit. Johnson testified that he was unaware of the withdrawals, claiming he lost focus on his business after his son's death in a 2016 car crash. He said his office manager mailed the blank checks. Johnson was also found guilty on the same charges.

Williams Stapleton's attorney argued she stole from Johnson's company, not from taxpayers. However, prosecutors presented evidence that both defendants failed to report thousands of dollars in payments from Robotics on their federal tax returns. They also showed that about 73% of the company's revenue from the district and federal programs was profit, which the pair split. Investigators presented surveillance video of Williams Stapleton checking the company's mail at an Albuquerque post office box.