Former New Mexico Legislator Convicted in Federal Kickback Scheme Involving Public School Funds

A former high-ranking New Mexico Democratic legislator and public school administrator has been convicted on dozens of federal charges following a yearslong scheme in which prosecutors said she helped steer millions of dollars in public education funds to a company owned by a friend in exchange for illicit payments.

A federal jury reached its verdict Friday against Sheryl Williams Stapleton, 69, after a trial that featured testimony from her former colleagues, investigators and tax experts. Williams Stapleton did not testify in her own defense.

She now faces the possibility of decades in federal prison when she is sentenced. Her attorney, Ahmad Assed, said the defense was disappointed by the verdict and was considering all available options, including an appeal.

“We’re obviously very disappointed with respect to the verdict rendered by the jury,” Assed said in a statement to The Associated Press. He added that the defense had been hopeful for a different outcome based on the evidence presented at trial.

Alleged diversion of millions in education funds

At the center of the case was Robotics Management Learning Systems LLC, a Washington, D.C.-based company owned by Joseph Johnson, a longtime friend of Williams Stapleton.

According to federal prosecutors, more than $3 million was paid to Robotics through contracts with Albuquerque Public Schools, with the majority of the money coming from federal funds earmarked for vocational and career education programs.

Williams Stapleton was responsible for Albuquerque Public Schools’ career and technical education programs at the time. Prosecutors alleged that she used her position to ensure that funding intended for those programs was directed to Robotics and helped move the company’s invoices through the district’s procurement system.

The government’s case alleged that the arrangement went well beyond preferential treatment in contracting.

According to the indictment, Johnson provided Williams Stapleton with blank checks from Robotics’ bank accounts. Williams Stapleton allegedly used those checks to write approximately 230 checks totaling more than $1.15 million for her personal benefit between 2013 and 2020.

Investigators also determined that a significant portion of the money flowing into Robotics’ accounts originated from federal education funding obtained through contracts with the school district.

Assistant U.S. Attorney Fred Federici told jurors that approximately 73% of the more than $3 million received by Robotics ultimately represented profit. Prosecutors argued that Williams Stapleton and Johnson divided the proceeds for their personal use.

Former friend says he was unaware of withdrawals

Johnson, who was also charged in the case, took the witness stand during the trial. He told jurors that he was unaware Williams Stapleton had withdrawn more than $1 million from Robotics’ checking accounts.

Johnson said he had become less involved in the company following the death of his son in a car accident in 2016. He testified that he relied heavily on his office manager to handle the company’s administrative affairs, including financial matters.

According to Johnson, the office manager was responsible for sending the blank checks to Williams Stapleton.

The jury nevertheless found Johnson guilty of similar federal offenses, including bribery and money laundering.

The defense sought to distinguish Williams Stapleton’s alleged conduct from the government’s broader characterization of the scheme. Her attorney, Ryan Villa, argued that while she may have taken money from Johnson’s company, she had not stolen money directly from state or federal taxpayers as prosecutors alleged.

Prosecutors, however, maintained that the funds at the heart of the scheme were ultimately public dollars, much of them originating from federal programs intended to support vocational education.

Tax violations added another dimension

The trial also included evidence concerning the defendants’ tax filings.

Federal investigators and tax experts presented evidence that Williams Stapleton and Johnson failed to report thousands of dollars in payments connected to Robotics on their federal income tax returns.

The alleged tax violations added to a case that already included charges of bribery, mail fraud, money laundering and conspiracy to defraud the federal government.

Investigators also presented surveillance footage showing Williams Stapleton visiting and checking Robotics’ Albuquerque post office box. Prosecutors used the footage as part of their effort to demonstrate her involvement in the company’s operations and the flow of payments.

Political and public-sector career comes to an end

The conviction marks a dramatic fall for Williams Stapleton, who had spent decades in New Mexico public life.

She was first elected to the state House of Representatives in 1994 and eventually became one of the chamber’s senior Democratic leaders, serving as House majority leader. At the same time, she held an administrative position with Albuquerque Public Schools, the state’s largest public school district.

Her political career came to an abrupt end in 2021 after investigators executed search warrants at her home. She resigned from the state House two days later, while Albuquerque Public Schools subsequently terminated her employment.

The federal case followed a separate state investigation into the same broader allegations.

State criminal case still pending

The federal conviction is not the end of Williams Stapleton’s legal troubles.

State prosecutors filed money laundering, racketeering and other charges against her in 2021. That separate case remains pending, with a trial scheduled for October.

The overlapping federal and state cases stem from the broader allegations surrounding Robotics Management Learning Systems and the handling of public education funds.

Williams Stapleton’s federal conviction therefore represents a significant milestone in a criminal investigation that has continued for several years, but she still faces additional legal proceedings at the state level.

A case highlighting risks around public procurement

Beyond the political consequences, the case underscores the vulnerabilities that can arise when public officials have significant influence over procurement decisions and access to government-funded programs.

The prosecution centered on allegations that Williams Stapleton was able to influence how education funds were allocated while maintaining a relationship with the private company receiving those funds. The alleged use of company checks for personal expenses, the movement of federal education money through the company’s accounts and the failure to report income to federal tax authorities formed key elements of the government’s case.

For prosecutors, the case was ultimately about the misuse of public resources and the mechanisms through which those resources were allegedly diverted for private benefit.

For the defense, the central argument was that Williams Stapleton’s conduct did not amount to stealing taxpayer funds in the manner alleged by the government.

The jury ultimately rejected that defense and found Williams Stapleton guilty on the federal charges.

With sentencing still ahead and a separate state trial scheduled for October, the legal proceedings surrounding the former legislator and school administrator are set to continue.