COURTS
‘I just missed the ball,’ Stapleton co-defendant testifies
Joseph Johnson tells jurors that he relied on employees to handle his company
Joseph Johnson told jurors Tuesday that he was unaware that his co-defendant, former House Majority Leader Sheryl Williams Stapleton, had withdrawn more than $1 million from his company’s checking accounts from 2013 to 2020.
Johnson, 75, testifying in his own defense, wept on the witness stand as he told jurors that he “lost focus on everything” after his son was killed in a car crash in 2016.
Prosecutors allege that Stapleton directed $1,152,506 from the account of Johnson’s Washington, D.C.-based company, Robotics Management Learning System, using blank checks provided by the company.
“I just missed the ball,” Johnson testified in U.S. District Court in Albuquerque. “I did not notice it was missing in an illicit way. I was totally unfocused on my Robotics world.”
Federal prosecutors attacked Johnson’s credibility Tuesday, asking him why he failed to report on his personal tax returns thousands of dollars in Albuquerque Public Schools payments to Robotics.
Stapleton, 68, a former APS official, and Johnson were indicted by a federal grand jury in March 2024 on 37 counts, including bribery, mail fraud, money laundering for allegedly conspiring to steal more than $2 million in state and federal education funding.
Stapleton and Johnson both have pleaded not guilty to all 37 counts and deny the allegations. The two are being tried together in a trial that began Aug. 3.
Stapleton made her only statements Tuesday in response to questions from U.S. District Judge James O. Browning, who asked her if she understood that she has a right to testify in her own defense.
“I do, your honor,” she responded. “I wish not to take the stand, your honor.”
Prosecutors allege that APS mailed checks to Robotics’ post office box in Albuquerque and that Stapleton personally retrieved the checks and deposited them into a Robotics business checking account.
Stapleton then used blank checks for the Robotics business checking account to deposit money into accounts that she owned or controlled, according to the federal indictment.
Johnson testified that he had relied on his office manager, the late Patricia Smith, who mailed packets of blank Robotics checks to Stapleton from the company’s office in the District of Columbia, Smith’s daughter testified Tuesday.
“She ran everything for me,” Johnson said of Smith, whose heath declined rapidly after her heart attack in 2014. “I did not change her responsibilities. In hindsight I probably should have.”
Johnson’s attorneys said in opening statements last week that he knew nothing of Stapleton’s alleged criminal activities.
Stapleton’s attorney, Ryan Villa, told jurors that Stapleton stole money from Johnson’s company but did not steal money from state and federal taxpayers as prosecutors allege.
Stapleton, a Democrat, served from 1995 to 2021 as New Mexico state representative for District 19, just east of the University of New Mexico. She resigned from her post as House majority leader in June 2021 after the New Mexico Department of Justice served search warrants at her home and offices. She was fired in August 2021 from her job at APS as director of Career and Technical Education.
Assistant U.S Attorney Frederick T. Mendenhall responded to Johnson’s testimony Tuesday by showing jurors copies of checks worth more than $450,000 that APS paid to Robotics in 2020, side-by-side with Johnson’s 2020 personal income tax return, in which he listed losses of $28,250.
“You knew about those checks to Robotics? You didn’t report it on your 2020 taxes?” Mendenhall asked. Johnson responded “yes” to each question.
Attorneys are expected to begin closing arguments Wednesday.
Olivier Uyttebrouck covers the court system. You can reach him at olivier@abqjournal.com.