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Former New Mexico lawmaker pleads guilty to diverting public school funds

Former New Mexico lawmaker pleads guilty to diverting public school funds

Summary

Sheryl Williams Stapleton, a former New Mexico House Majority Leader, pleaded guilty to state charges of fraud and money laundering for diverting millions of dollars meant for vocational education to businesses and charities she was connected to. She agreed to a prison sentence of 10.5 years and restitution over $1.8 million, with most other charges dropped under a plea deal.

Key Facts

  • Sheryl Williams Stapleton was a high-ranking Democratic legislator in New Mexico since 1994.
  • She diverted over $3 million intended for vocational education in Albuquerque Public Schools to companies and charities linked to her and her associates.
  • She pleaded guilty to state charges including money laundering and fraud in August 2026.
  • A federal jury had convicted her of similar charges three weeks before her guilty plea.
  • Her plea deal includes a 10.5-year prison sentence and repayment of more than $1.8 million.
  • Prosecutors said she worked with Joseph Johnson, a friend and co-defendant, who owned a company that received the diverted funds.
  • She resigned from the legislature and was fired by the school district in 2021 after investigations began.
  • Both Williams Stapleton and Johnson failed to report income from their scheme on federal tax returns and were convicted federally but have not been sentenced yet.
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