Disgraced State Rep and APS Employee Faces Over 500 Years in Prison After Guilty Verdict

ALBUQUERQUE – After a nine-day trial, a federal jury convicted former State Representative Sheryl Williams Stapleton and her friend Joseph Johnson on all counts with which they were charged stemming from a yearslong 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 Albuquerque Public Schools (APS) as Director of the Perkins Project and Career and Technical Education (CTE) Coordinator to direct approximately 40% of APS’s non-personnel CTE funding to Robotics Management Learning Systems (Robotics), a Washington, D.C., 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 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 $1,152,506, or approximately 38% of the funds APS paid to Robotics. She directed approximately:

• $286,772 to S. Williams & Associates, a company she owned and controlled;
• $313,123 to Taste of the Caribbean, an Albuquerque restaurant she owned and her family members operated;
• $479,961 to Ujima Foundation, a nonprofit entity Stapleton and Johnson operated together; and
• $72,649 to other parties for goods and services benefiting Stapleton, 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 $479,961 was deposited into Ujima accounts from Robotics, the foundation claimed to 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.

“After decades in public service, the defendant chose to put her own financial interests ahead of the students, taxpayers and institutions she was entrusted to serve,” said first assistant U.S. Attorney Ryan Ellsion. “She held a position of public trust, and the people who placed that trust in her had every right to expect that she would honor it. That trust was not hers to trade for personal gain.”

“Public servants are entrusted to enrich their communities, not line their own pockets,” said IRS Criminal Investigation Phoenix Field Office Acting Special Agent in Charge Scott Brown. “Ms. Stapleton and Mr. Johnson executed an elaborate web of fraud, kickbacks, and money laundering, funneling millions meant for students into personal bank accounts and false tax returns. Today’s verdict proves that no matter how sophisticated the scheme, IRS Criminal Investigation special agents will follow the money trail and hold accountable those who betray the public trust.”

“Public corruption strikes at the foundation of our government and erodes the public’s confidence in those entrusted to serve them.  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,” said Justin A. Garris, Special Agent in Charge of the FBI Albuquerque Field Office.

“We encourage anyone with information about suspected public corruption to contact the FBI or their local law enforcement agency. Together with our partners, we will continue to pursue those who violate the public’s trust and bring them to justice.”

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. Following the verdict, the Court ordered that Stapleton be released pending sentencing, which has not been scheduled. 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 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. Following the verdict, the Court ordered that Johnson be released pending sentencing, which has not been scheduled. 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.

First Assistant U.S. Attorney Ryan Ellison, Acting Special Agent in Charge Scott Brown of IRS Criminal Investigation’s Phoenix Field Office and Special Agent in Charge Justin A. Garris of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.