A man once trusted to hand out scholarship money to aspiring beauty queens in New Mexico has admitted to stealing the funds intended to help young contestants get an education and a shot at the crown.
Former Miss New Mexico Scholarship Organization executive director Greg Smith pleaded guilty in a long-running embezzlement case nearly seven years after prosecutors accused him of diverting money meant for pageant winners.
Smith, now 62, agreed last month to a plea deal that sees him admitting to using the organization's accounts for personal transactions including the purchase of bull semen for breeding purposes.
Smith has plead guilty to two counts of embezzlement involving amounts over $250 but less than $500, according to court documents.
In exchange for the plea, prosecutors dismissed 16 other felony charges that had once painted a far broader picture of alleged corruption surrounding the state pageant system.
The scandal stands as a stunning fall from grace for a man who once occupied one of the most visible leadership positions in New Mexico's pageant circuit.
The case dates back to 2019, when New Mexico Attorney General Hector Balderas and Roosevelt County District Attorney Andrea Reeb announced a sweeping grand jury indictment against Smith.
At the time, authorities accused the former pageant boss of withholding scholarship money owed to contestants while running the Miss New Mexico Scholarship Organization from 2015 through 2018.
Former Miss New Mexico Scholarship Organization executive director Greg Smith pleaded guilty nearly seven years after prosecutors accused him of stealing scholarship money intended for pageant contestants
Stephanie Chavez, the 2016 Miss New Mexico winner, emerged as one of the most outspoken figures in the scholarship scandal after accusing Greg Smith of withholding the money
Prosecutors alleged some of the scholarship money Smith withheld from pageant contestants was instead spent on ranching-related purchases connected to his cattle breeding business
'The executive director withheld that scholarship money, and then personally spent that on ridiculous items,' said Balderas noting how some of the withheld funds were used on ranching-related business expenses.
'He was a bull breeder, and he used some of this money even on bull semen,' said Balderas.
The grand jury indictment hit Smith with 18 felony counts, including embezzlement, fraud, racketeering, tax evasion and issuing worthless checks.
According to the New Mexico Department of Justice, Smith had been entrusted with approximately $21,000 from the national Miss America organization specifically designated for scholarship winners from previous years.
Prosecutors alleged he never distributed much of the money to the contestants who were supposed to receive it.
'When he took over the organization he was provided approximately $21,000 from the National Organization for the express purpose of paying out scholarships to the remaining contest winners from 2014 and previous years,' the attorney general's office said in a 2019 press release.
'He was provided the amount owed and the information for the contestants, but failed to distribute the scholarships owed,' the release explained.
Stephanie Chavez, the 2016 Miss New Mexico pageant winner, is among the victims.
Then-New Mexico Attorney General Hector Balderas drew national attention to the allegations in 2019 when he claimed Smith used organization funds to purchase bull semen
Miss New Mexico Stephanie Chavez said she contacted the New Mexico Attorney General's Office after her concerns about missing scholarship funds were allegedly ignored
Prosecutors said some of the scholarship money Smith withheld from pageant contestants was instead spent on ranching-related purchases connected to his cattle breeding business
'I feel very relieved with what we've found and I hope that Mr. Smith is held accountable for his actions,' said Chavez to KRQE in 2019.
Chavez told the New Mexico Attorney General's Office she had to report Smith after she said nobody listened to her about her concerns over the scholarship funds that were being withheld.
'This organization kind of prides itself on giving women their voice, and it's ironic that I was kind of silenced when I came out and spoke out about this,' said Chavez.
Authorities also accused Smith of using the organization's bank accounts to conduct personal financial transactions during his tenure as executive director.
'New Mexican women who seek leadership opportunities should not see those opportunities taken by corporate corruption,' then-Attorney General Balderas said when the charges were announced.
'My office is dedicated to ensuring that vulnerable New Mexicans are protected from those who prey upon them, and we look forward to presenting this case to a jury,' he added.
Former New Mexico pageant director and rancher Greg Smith is seen in some of his Facebook photos. Here he is at the Miss America Pageant 2016 in September of that year
Miss New Mexico 2016, Stephanie Chavez, criticized the pageant organization's response to her complaints, saying: 'This organization kind of prides itself on giving women their voice, and it's ironic that I was kind of silenced when I came out and spoke out about this.'
Greg Smith’s plea agreement includes two years of probation and more than $12,000 in restitution payments. Smith is seen here with some pageant contestants in 2017
But instead of going before a jury, the years-long criminal case quietly moved toward a negotiated resolution.
Under the plea agreement filed in April, Smith admitted guilt on the two embezzlement counts and will receive two years of probation. Court records also show he agreed to pay more than $12,000 in restitution.
The plea deal requires him to issue restitution to three former pageant contestants.
Smith has agreed to pay $2,458.78 to Stephanie Chavez, $6,003.70 to Madison Belcher and $3,625 to Sherry Smith.
The deal dramatically reduced Smith's legal exposure after years of facing allegations that threatened to dismantle his reputation inside New Mexico's pageant world.
For years, the Miss New Mexico Scholarship Organization presented itself as a pathway for young women seeking educational funding, networking opportunities and leadership development through the Miss America system.
Instead, prosecutors alleged contestants were left waiting for scholarship money that never arrived.
Under Smith’s plea agreement, Chavez is set to receive $2,458.78 in restitution tied to the scholarship funds prosecutors say were withheld from contestants
Prosecutors said multiple contestants were left waiting for scholarship money that had been promised through the Miss New Mexico Scholarship Organization but was never paid out
The allegations sent shockwaves through New Mexico's pageant community when they first surfaced, particularly because the funds at issue had allegedly been earmarked specifically for prior winners expecting scholarship payments.
Smith led the organization during a turbulent period from 2015 to 2018 before the accusations exploded into public view.
Court records as seen by People show the plea agreement resolved the criminal case without a trial, with prosecutors dismissing the remaining counts that once included racketeering and tax-related allegations.
Smith has not publicly commented on the plea agreement.