Former New Mexico lawmaker pleads guilty to diverting public school funds

Law Journals

Former New Mexico lawmaker pleads guilty to diverting public school funds

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.

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