What’s next for Sheryl Williams Stapleton — and where the money went

Former New Mexico state Rep. Sheryl Williams Stapleton and business owner Joseph Johnson are awaiting sentencing after a federal jury convicted them in a yearslong scheme to divert education money from Albuquerque Public Schools.

The verdict followed a nine-day trial. Stapleton was convicted on all 37 counts she faced, including bribery, fraud, money laundering, conspiracy and filing false tax returns. Johnson also was convicted on every charge against him.

Prosecutors said Stapleton used her positions at APS and in the New Mexico Legislature to steer money to Johnson’s company, Robotics Management Learning Systems. APS paid the company approximately $3.25 million from 2013 through 2021, including about $2.52 million in federal Perkins education funds.

Stapleton received approximately $1.15 million — about 38% of the money APS paid the company — through businesses she controlled, a nonprofit she operated with Johnson and payments that benefited her personally, according to prosecutors.

The payments included:

• $286,772 to S. Williams & Associates, a court-reporting company owned and controlled by Stapleton based in Albuquerque.
• $313,123 to Taste of the Caribbean, a restaurant near the University of New Mexico that Stapleton owns and her family operates.
• $479,961 to the Ujima Foundation, a nonprofit run by Stapleton and Johnson.
• $72,649 in other personal benefits, including renovations to Stapleton’s home.

Prosecutors said the Ujima Foundation claimed approximately $46,700 in scholarship expenses, but bank records showed only about $2,000 went toward scholarships.

Taste of the Caribbean, which has operated near UNM for about 20 years, remains open. Attorney John Day, a KOAT legal expert who is not involved in the case, said prosecutors sometimes seek to close businesses connected to criminal conduct. Their continued operation could indicate prosecutors do not believe closure is necessary, he said.

Why Stapleton and Johnson remain free

Stapleton and Johnson left the courthouse Friday after the verdicts and remain released pending sentencing.

Day said that is not unusual in a white-collar criminal case, particularly when defendants have complied with release conditions and are not considered significant flight risks.

“So I’m not surprised if the judge has let them be out of custody until there is a sentencing,” Day said.

Before sentencing, court officials will prepare reports examining each defendant’s criminal record, medical condition, family circumstances, social history and other background information. The judge will use those reports, along with federal sentencing guidelines, to determine whether they should serve time in prison and, if so, for how long.

Stapleton and Johnson are likely subject to strict release conditions, Day said. Those conditions could include travel restrictions, surrendering passports, avoiding contact with certain people and complying with court supervision. The specific conditions were not immediately available.

The pair is expected to be sentenced in November, though a specific sentencing date was not provided.

Even if the judge imposes prison terms, Stapleton and Johnson might not be taken into custody immediately. The court could establish surrender dates requiring them to report to federal prison later. The Federal Bureau of Prisons would decide where they serve their sentences.

The statutory maximum penalties total 524 years for Stapleton and 515 years for Johnson. Those figures represent the combined maximums allowed for the individual charges, not the sentences they are expected to receive. Their actual punishment will be determined under federal sentencing rules and by the judge.

Restitution could be ordered

The court also could order Stapleton and Johnson to repay money connected to the scheme.

“Restitution is pretty normal in any kind of white-collar conviction,” Day said. “It’s an effort by the courts and the prosecution to say, ‘Hey, you’ve got to pay back what you’re convicted of stealing.’”

Stapleton’s attorneys acknowledged during the trial that she took money but argued she stole it privately from Johnson’s company rather than from taxpayers. Johnson’s defense argued he did not know where money from blank checks was going. The jury rejected those arguments.

Prosecutors also said Stapleton and Johnson concealed their financial relationship and conflicts of interest. Stapleton failed to report substantial income on state financial disclosures and federal tax returns, according to the government.

Stapleton still faces separate charges in state District Court. Her attorneys said they want the state case dismissed following the federal verdict. Stapleton is not commenting on the federal convictions because the state case remains pending, her attorneys said.