Ex-New Mexico lawmaker convicted in $1.15 million school bribery scheme

A federal jury in Albuquerque convicted former New Mexico state Rep. Sheryl Williams Stapleton and her associate Joseph Johnson on all counts following a nine-day trial, according to the Justice Department.

The case centered on a yearslong scheme in which Stapleton used her dual roles at Albuquerque Public Schools (APS) and in the state legislature to steer millions of dollars to Johnson’s company while secretly receiving roughly $1.15 million from it, court documents and evidence presented at trial showed.

From approximately July 2013 through June 2021, Stapleton, 69, used her position as APS’s Director of the Perkins Project and Career and Technical Education Coordinator to direct about 40% of the district’s non-personnel CTE funding to Robotics Management Learning Systems, a Washington, D.C.-based company owned and operated by Johnson, 75. The contracts covered the use and support of the company’s CyberQuest software in APS classrooms. APS paid Robotics approximately $3.25 million over that period, including about $2.52 million in federal Perkins funds, according to the Justice Department.

While serving as a state representative for District 19 from 1995 through 2021—and as majority floor leader from 2017 through 2021—Stapleton sponsored and advocated for legislation and capital outlays that provided additional funding to APS’s CTE programs. She then used her school district authority to direct funding to Robotics and facilitate contracts through procurement exemptions, sole-source contracts and, later, a request for proposals, according to the release.

Stapleton reviewed and approved Robotics’ invoices and directed employees under her supervision to approve them. She personally retrieved APS checks from a post office box and deposited them into Robotics’ bank account. Johnson provided her with blank checks from the company’s account, which she used to distribute approximately $1,152,506 for her own benefit, evidence presented at trial showed. The funds included approximately $286,772 directed to her company, S. Williams & Associates; $313,123 to Taste of the Caribbean, a restaurant she owned and her family operated; $479,961 to the Ujima Foundation, a nonprofit she operated with Johnson; and $72,649 to other parties for goods and services benefiting her, including remodeling work on her home.

The Ujima Foundation claimed to have distributed approximately $46,700 in scholarships during the period in which it received roughly $479,961 from Robotics. Bank records, however, showed that only about $2,000 went to scholarships, while most of the remaining funds benefited Stapleton or were withdrawn in cash, according to the release.

Stapleton and Johnson concealed their financial relationship and the flow of funds from APS through Robotics to Stapleton and entities she controlled. Stapleton also failed to report the substantial income she received from Robotics on required state financial disclosures and federal tax returns. Johnson concealed the relationship by providing blank Robotics checks and certifying in company proposals and agreements that no conflict of interest existed.

Stapleton was convicted of conspiracy to defraud the United States, five counts of bribery concerning programs receiving federal funds, 13 counts of mail fraud and honest services fraud, three counts of making and subscribing false tax returns, nine counts of money laundering, and one count of conspiracy to commit money laundering. She faces up to 524 years in prison, followed by three years of supervised release.

Johnson was convicted of conspiracy to defraud the United States, five counts of bribery concerning programs receiving federal funds, 13 counts of mail fraud and honest services fraud, nine counts of money laundering, and one count of conspiracy to commit money laundering. He faces up to 515 years in prison, followed by three years of supervised release.

Both defendants were released pending sentencing, which has not been scheduled. The court will determine at sentencing whether restitution is appropriate and, if so, the amount to be paid.

IRS Criminal Investigation’s Phoenix Field Office investigated the case with assistance from the FBI’s Albuquerque Field Office and the U.S. Department of Education’s Office of Inspector General.