Albuquerque, NM. — A federal jury has convicted former New Mexico state Rep. Sheryl Williams Stapleton and business owner Joseph Johnson on bribery, fraud and money laundering charges stemming from a yearslong scheme involving millions of dollars intended for career and technical education.
Prosecutors said Stapleton, 69, used her positions with Albuquerque Public Schools and the New Mexico Legislature to direct approximately $3.25 million to Robotics Management Learning Systems, a Washington, D.C., company owned by Johnson, 75. Stapleton then secretly received approximately $1.15 million from the company between 2013 and 2021.
The verdict followed a nine-day trial in federal court.
During the scheme, Stapleton served as Albuquerque Public Schools’ director of the Perkins Project and career and technical education coordinator. She also represented New Mexico House District 19 from 1995 through 2021 and served as majority floor leader during her final four years in office.
Evidence presented at trial showed that Stapleton directed approximately 40% of the school district’s non-personnel career and technical education funding to Johnson’s company for CyberQuest software and related classroom services. The payments included approximately $2.52 million in federal Perkins funding.
While serving in the Legislature, Stapleton sponsored and advocated for legislation and capital spending that provided additional career and technical education funding to Albuquerque Public Schools, according to prosecutors. She subsequently used her district position to direct money to Robotics through procurement exemptions, sole-source contracts and a later competitive request for proposals.
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Stapleton reviewed and approved company invoices, instructed subordinate employees to approve them and personally collected district checks mailed to a post office box, prosecutors said. She then deposited the checks into Robotics’ bank account.
Johnson supplied Stapleton with blank checks from the company’s account, which she used to move money to businesses and organizations she controlled, according to the evidence.
Prosecutors said approximately $286,772 went to Stapleton’s consulting company, S. Williams & Associates; $313,123 went to her family-operated restaurant, Taste of the Caribbean; and $479,961 went to the Ujima Foundation, a nonprofit operated by Stapleton and Johnson. Another $72,649 paid for goods and services benefiting Stapleton, including remodeling work at her home.
Although the Ujima Foundation claimed to have distributed approximately $46,700 in scholarships, bank records showed only about $2,000 went toward scholarships, prosecutors said. Most of the remaining money benefited Stapleton or was withdrawn in cash.
Stapleton and Johnson concealed their financial relationship, while Stapleton failed to report substantial income from Robotics on state financial disclosures and federal tax returns, according to the U.S. Attorney’s Office.
“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,” First Assistant U.S. Attorney Ryan Ellison said.
Stapleton was convicted of conspiracy to defraud the United States, five bribery counts, 13 mail fraud and honest-services fraud counts, three false tax return counts, nine money laundering counts and conspiracy to commit money laundering.
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Johnson was convicted of conspiracy to defraud the United States, five bribery counts, 13 mail fraud and honest-services fraud counts, nine money laundering counts and conspiracy to commit money laundering.
Both defendants were released pending sentencing, which has not been scheduled. The Justice Department said Stapleton faces a combined statutory maximum of 524 years in prison, while Johnson faces a combined maximum of 515 years. Actual sentences will be determined by the judge using federal sentencing law and guidelines.
The court will also decide whether the defendants must pay restitution and, if so, the amount.
IRS Criminal Investigation led the investigation with assistance from the FBI and the U.S. Department of Education’s Office of Inspector General.
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