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Former New Mexico Democratic leader convicted in school-fund kickback scheme

A former top Democratic legislator in New Mexico was found guilty of multiple federal offenses tied to diverting school money to a friend’s firm.

A jury in Albuquerque convicted former state House majority leader Sheryl Williams Stapleton on more than three dozen federal charges, ranging from bribery to money laundering, after a trial that included statements from her ex-colleagues, investigators and tax specialists. The case centers on a scheme in which she directed more than $3 million of federal vocational-education money to Robotics Management Learning Systems LLC, a Washington, D.C. firm owned by her friend Joseph Johnson.

Prosecutors allege Stapleton processed the company’s invoices and wrote about 230 checks that added up to $1,152,506, which she kept for herself. Johnson testified that he was unaware of the withdrawals and blamed his office manager for mailing blank checks, but he was also found guilty of the same offenses. Both defendants failed to report thousands of dollars received from Robotics on their federal tax returns. Stapleton, who did not testify, now faces up to 20 years in prison, and a separate state case against her is scheduled for trial in October.

Why it matters

The conviction highlights misuse of federal education funds and raises concerns about oversight of public-school contracts.

In this story

federal fraudschool fundingkickback schememoney launderingbriberyvocational educationconvictionpublic-school contracts
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