Former New Mexico lawmaker pleads guilty to diverting public school funds

Legal Compliance

A former high-ranking Democratic legislator in New Mexico accused of diverting millions of dollars meant for vocational education in the state's largest school district to businesses and charities in which she had an interest has pleaded guilty to state charges that include fraud and money laundering.

Sheryl Williams Stapleton changed her plea during a hearing Friday, just three weeks after a federal jury convicted her of dozens of similar charges stemming from what prosecutors described as a yearslong scheme.

State prosecutors filed money laundering, racketeering and other charges against Williams Stapleton in 2021. She was set to go to trial in October. Under the plea agreement, all but four of the charges were dropped, and the agreement calls for a 10 1/2-year prison sentence and more than $1.8 million in restitution.

“Today's guilty plea holds Sheryl Williams Stapleton accountable for defrauding New Mexico taxpayers and abusing the public trust,” said Lauren Rodriguez, a spokesperson for the New Mexico Department of Justice.

Rodriguez added that state prosecutors are pleased that the federal sentencing range “will provide a significant period of incarceration beyond what the state system could impose on its own.”

An attorney for Williams Stapleton did not immediately respond to a message seeking comment Friday.

A former state House majority leader and an administrator with Albuquerque Public Schools, Williams Stapleton was first elected in 1994. She resigned from the House two days after search warrants were served at her home during summer 2021, and the school district fired her.

In the federal case, prosecutors said that the district paid more than $3 million to Robotics Management Learning Systems LLC, a Washington, D.C.-based company at the center of both the state and federal cases. Most of that money came from federal funds meant for vocational education programs.

As the school district's career and technical education director, Williams Stapleton made sure money for those programs went to Robotics, which was owned by her friend and federal co-defendant Joseph Johnson, prosecutors said. Williams Stapleton was accused of ushering the company's invoices through the procurement process. Johnson was accused of providing blank checks to Williams Stapleton.

During the federal trial, prosecutors also presented evidence that Williams Stapleton and Johnson failed to report thousands of dollars in payments from Robotics on their federal income tax returns.

Jurors also convicted Johnson in the federal case. He and Williams Stapleton have yet to be sentenced, and their attorneys previously indicated they would appeal the federal verdicts.

Related listings

Any contracts or any transactions can go awry at any time

We know your business means a lot to you and want to understand all the aspects of your business so that we can help you in the best ways possible. We don’t discriminate depending on the size of your company. Our mission statement is to represent all business owners and entrepreneurs by navigating them through the rough waters of business litigation and guiding them to success.

We are attorneys who want to make sure we understand your business objectives and goals before we start providing you with legal counsel individualized to your business. We know what it means to be dedicated to your business. After all, we are a business as well. And just like you, we want to provide the best service we can to our clients.

Any contracts or any transactions can go awry at any time. Sometimes, making important business decisions without legal help from business attorneys could cost you your business.We don’t want you or your business to be misconstrued by anyone. Our attorneys make sure that we communicate with you often to make sure we are giving you the legal guidance you need at all times. We make sure we are responsive in a timely-manner with every single one of our clients to help them identify risks and prevent legal battles before they arise.