Former New Mexico House Majority Leader Pleads Guilty to School Fund Fraud

Sheryl Williams Stapleton pleaded guilty to state fraud and money laundering charges tied to millions diverted from Albuquerque school vocational funds.

Ex-lawmaker admits to diverting millions from Albuquerque public schools

Sheryl Williams Stapleton, a former New Mexico House majority leader and Albuquerque Public Schools administrator, pleaded guilty Friday to state charges including fraud and money laundering, according to ABC News US. The plea came just three weeks after a federal jury convicted her on dozens of similar counts.

State prosecutors had filed money laundering, racketeering and related charges against Williams Stapleton in 2021. Under the plea agreement, all but four of those charges were dropped. The deal calls for a prison sentence of 10½ years 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 welcome the fact 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 respond to a request for comment Friday.

Prosecutors allege that Williams Stapleton diverted millions of dollars intended for vocational education programs in the state's largest school district to businesses and charities in which she held a personal interest. At the center of both the state and federal cases is Robotics Management Learning Systems LLC, a Washington, D.C.-based company that received more than $3 million from the Albuquerque school district — most of it drawn from federal funds earmarked for vocational education.

As the district's career and technical education director, Williams Stapleton steered those program funds to Robotics, which was owned by her friend and federal co-defendant Joseph Johnson, prosecutors said. She is accused of pushing the company's invoices through the district's procurement process, while Johnson allegedly provided her with blank checks.

Federal prosecutors also presented evidence at trial that both Williams Stapleton and Johnson failed to report thousands of dollars in Robotics payments on their federal income tax returns. Jurors convicted Johnson alongside Williams Stapleton in the federal case. Neither has been sentenced yet, and their attorneys have indicated they intend to appeal the federal verdicts.

Williams Stapleton was first elected to the New Mexico House of Representatives in 1994 and rose to the position of House majority leader. She resigned from the legislature two days after search warrants were executed at her home in the summer of 2021; the school district fired her around the same time. She had been scheduled to face trial on the state charges in October before changing her plea on Friday.

Source: ABC News US