U.S. Attorney's Office issues subpoena on Williams Stapleton records

Jul. 30—The probe into the business dealings of House Floor Leader Sheryl Williams Stapleton appears to be widening — and her ability to remain as a legislative leader may be narrowing.

The U.S. Attorney's Office issued a federal grand jury subpoena to Albuquerque Public Schools for all records related to Williams Stapleton, who already is under investigation by the state Attorney General's Office.

Luis Robles, attorney for the largest school district in the state, said by phone Thursday the subpoena was issued Tuesday, the same day the Attorney General's Office issued a search warrant affidavit for both the home and business office of Stapleton, the second-ranking Democrat in the state House of Representatives.

That state affidavit says investigators are looking into whether Williams Stapleton was involved in money laundering, taking illegal kickbacks, racketeering and violations of state governmental and ethical codes related to her jobs as a public school employee and a state lawmaker.

At the core of the investigation is Williams Stapleton's relationship to the Washington, D.C.-based Robotics Management Learning Systems, LLC, which provided online learning materials to the district for years.

Robles said federal investigators "want everything that you would want related to Robotics — invoices, all procurement documents, anything Ms. Williams Stapleton was involved with regarding Robotics."

"Some are mundane, some not so mundane," he said of the requested items.

Scott Howell, a spokesman for the U.S. Attorney's Office in New Mexico, said Department of Justice guidelines do not allow his agency to "confirm the existence of or otherwise comment about ongoing investigations."

But if charges are filed in court, any such action would become public, he said.

As of Thursday, no charges have been filed against Williams Stapleton, who, according to the affidavit, turns 64 on Friday.

Meanwhile, the Albuquerque school district announced in a news release Wednesday that it has placed at least a dozen employees, including Williams Stapleton, on administrative leave in conjunction with the criminal investigation.

"It is possible that more APS employees will be placed on leave as the investigation proceeds," wrote district spokeswoman Monica Armenta. "Placing employees on leave does not imply wrongdoing or guilt, nor is it punitive. It is a necessary step to protect the integrity of the probe and allow investigators to do their job. All employees are presumed innocent unless proven otherwise."

She said the other employees on leave include administrators, teachers, and school and clerical staff.

There's more potential trouble for Williams Stapleton in the Legislature. Democratic caucus leaders in the House of Representatives, where Williams Stapleton has served since 1995, will meet Saturday to "discuss her role going forward," Pamela Armstrong, a spokeswoman for the House Democrats, wrote in an email.

By law, those representatives cannot force Williams Stapleton, as an elected official, out of her position, but they can vote to remove her from her position as House floor leader or to censure her. House Democratic leaders said earlier this week they plan to initiate an interim Legislative Ethics Committee investigation into the allegations related to her legislative service.

Williams Stapleton's lawyer, Ahmad Assed of Albuquerque, said in an email statement he would have no immediate comment.

"While we are anxious to give a detailed statement addressing this matter, and also giving our side of the story, we are unable to do so at this time," Assed said. "This is a pending investigation in its inception, and my office must conduct its due diligence, pursue its own investigation into the allegations and investigate the basis of the search warrants."

State investigators allege Williams Stapleton was central to an elaborate plan that allowed her to be involved with the procurement of a contract with Robotics Management and even approve payments for invoices. The affidavit stated she, companies she owns and nonprofits with which she is involved received nearly $1 million from the Robotics Management contract.

Investigators from the state Attorney General's office searched Williams Stapleton's school district office Tuesday night and searched her home in Albuquerque on Wednesday morning. They also issued a search warrant for her office in the state Capitol.

As of 5 p.m. Thursday, no search had been made there, said Raúl Burciaga, director of the Legislative Council Service at the Capitol.

The affidavit also questions whether Williams Stapleton's role as a lawmaker — particularly her role on legislative education committees, which recommend funding levels and changes for schools and school programs — constitutes ethical violations.

The affidavit lists a number of legislative bills Williams Stapleton introduced over the years related to support, studies and funding for web-based and career technology educational programs, though not all of them made it to the legislative finish line.

New Mexico has an unpaid, volunteer citizen Legislature, and the question of whether members are involved in conflict-of-interest situations when they vote on bills that could affect the industries in which they work often comes up.

But in Williams Stapleton's case, Robles said her legislative influence may have crossed a line. She worked as the school district's career and technical education director and oversaw the federal Perkins Grant program, which provides funding for improving technical education programs.

Robles said Williams Stapleton did not have direct control over those funds but she could "ask for certain grant programs to be allocated to CTE. That could explain why the federal government is involved [in the investigation] — it is federal money."

He said Williams Stapleton may have had more influence with those requests because of her role as a lawmaker.

"That's the nub of the story — because she has power, her requests are different than another administrator's request," he said.

Heather Ferguson, executive director of Common Cause New Mexico, said that idea speaks to the "invisible influence that someone has by being an elected official in New Mexico. It would be naive to believe they don't carry weight."

She said it's one reason legislators should openly list any possible conflict of interest they have with businesses, foundations and other entities — something, the search warrant affidavit says, Williams Stapleton did not appear to do.

Former Democratic state Sen. Dede Feldman, who served in the Legislature from the late 1990s until 2013, said Williams Stapleton has always served on education committees because of her hands-on experience in schools.

But Feldman said Williams Stapleton "has sponsored funding as well as studies of vocational education and training of all schools. She is the appropriator and also her programs within APS are the recipient of some of these funds. That always raises the big question."

She said regardless of the outcome of the criminal investigation, the case will "have political ramifications" for Williams Stapleton's future in the House, and perhaps others'.

"It casts a shadow on all legislators," Feldman said.