Staff Reports
ALBUQUERQUE — After a nine-day trial, a federal jury convicted former Rep. Sheryl Williams Stapleton, D-N.M., and her friend Joseph Johnson on all counts with which they were charged stemming from a years-long scheme in which Stapleton used her position at Albuquerque Public Schools and in the legislature to steer millions of dollars in funding to Johnson’s company and secretly received approximately $1.15 million from the company.
According to court documents and evidence presented at trial, from about July 1, 2013, through June 30, 2021, Stapleton, 69, used her position at APS as Director of the Perkins Project and Career and Technical Education Coordinator to direct approximately 40% of APS’ non-personnel CTE funding to Robotics Management Learning Systems, a Washington, D.C., a company owned and operated by Johnson, 75, for use of and support for the CyberQuest software in APS classrooms. From 2013 through 2021, APS paid Robotics approximately $3.25 million under contracts for the software and related services, including approximately $2.52 million in federal Perkins funds.
During that time, Stapleton served as a New Mexico state representative for District 19 from 1995 through 2021 and was majority floor leader from 2017 through 2021. While serving in the Legislature, she sponsored and advocated for legislation and capital outlays that directed additional funding to APS for CTE programs. She then reportedly used her position at APS to direct CTE funding to Robotics and facilitate contracts for the company through procurement exemptions, sole-source contracts, and, later, a request for proposals.
As APS’s CTE official, Stapleton reviewed and approved Robotics’ invoices and directed employees under her supervision to approve them. APS issued checks to Robotics and mailed them to a post office box in Albuquerque. Stapleton personally retrieved APS’s checks from the post office box and deposited them into the Robotics bank account. Johnson provided blank checks from the Robotics business account, which Stapleton used to distribute Robotics funds for her own benefit.
Stapleton used the Robotics checks to obtain approximately over $1.1 million, or approximately 38% of the funds APS paid to Robotics. She directed approximately:
almost $287,000 to S. Williams & Associates, a company she owned and controlled
over $313,000 to Taste of the Caribbean, an Albuquerque restaurant she owned and her family members operated
nearly $480,000 to Ujima Foundation, a nonprofit entity Stapleton and Johnson operated together
almost $73,000 to other parties for goods and services benefiting herself, including remodeling work on her home
The Ujima Foundation was nominally established to address educational, social, economic, and health issues affecting people of color in New Mexico. During the period in which approximately $480,000 was deposited into Ujima accounts from Robotics, the foundation claimed to have distributed approximately $46,700 in scholarships; however bank records only should approximately $2,000 going to scholarships, while most of the remaining funds went to Stapleton’s benefit or were withdrawn in cash.
Stapleton and Johnson concealed their financial relationship and the flow of funds from APS to Robotics and ultimately to Stapleton and entities she controlled. Stapleton failed to disclose the substantial income she received from Robotics on required state financial disclosures and federal tax returns. Johnson also concealed his financial relationship with Stapleton, including by providing blank Robotics checks and certifying in Robotics’ proposals and agreements that there was no conflict of interest.
“Public corruption strikes at the foundation of our government and erodes the public’s confidence in those entrusted to serve them,” Justin A. Garris, Special Agent in Charge of the FBI Albuquerque Field Office, said. “This conviction demonstrates that using public office to unlawfully enrich oneself will not be tolerated. No position of authority provides immunity from accountability, and there is no level of acceptable corruption.”
Stapleton was convicted of conspiracy to defraud the U.S., 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. Following the verdict, the Court ordered that Stapleton be released pending sentencing, which has not been scheduled as of press time.
At sentencing, Stapleton faces up to 524 years in prison followed by three years of supervised release.
Johnson was convicted of conspiracy to defraud the U.S., 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. Following the verdict, the Court ordered that Johnson be released pending sentencing, which has not been scheduled as of press time.
At sentencing, Johnson faces up to 515 years in prison followed by three years of supervised release.
At sentencing, the Court will determine whether restitution is appropriate and, if so, the amount to be paid.
The IRS Criminal Investigation Phoenix Field Office investigated this case with assistance from the FBI Albuquerque Field Office and U.S. Department of Education – Office of Inspector General. Assistant U.S. Attorneys Fred Federici and Rick Mendenhall are prosecuting the case.
