A long-running financial scandal involving the Miss New Mexico Scholarship Organization has finally moved toward resolution after former pageant director Greg Smith accepted a plea deal nearly seven years after he was first accused of stealing scholarship funds meant for contestants.
The case, which drew statewide attention, involved allegations of embezzlement, unpaid scholarship money, and a lengthy criminal investigation.
Former Pageant Director Accepts Plea Deal
Greg Smith, now 62, has agreed to plead guilty in connection with missing scholarship funds linked to the Miss New Mexico Scholarship Organization.
Smith previously served as director of the organization from 2015 to 2018. During that period, prosecutors alleged he failed to distribute scholarship money owed to several pageant winners.
As part of the agreement, Smith pleaded guilty to two counts of embezzlement involving amounts between $250 and $500. In exchange, prosecutors agreed to dismiss the remaining 16 criminal charges.
Originally Faced 18 Criminal Charges
When the investigation became public in 2019, the New Mexico Department of Justice announced that Smith had been indicted on 18 charges.
The charges included:
- Embezzlement
- Fraud
- Racketeering
- Tax evasion
- Issuing worthless checks
Investigators alleged that Smith received approximately $21,000 from the national pageant organization specifically intended for scholarship payments to contestants from previous years.
Prosecutors claimed that instead of distributing the funds as required, Smith failed to pay the winners.
Contestants to Receive Restitution
Under the plea agreement, Smith must pay more than $12,000 in restitution to former contestants who were allegedly denied their scholarship money.
The court documents show payments will include:
- Stephanie Chavez — $2,458.78
- Madison Belcher — $6,003.70
- Sherry Smith — $3,625
These payments are designed to compensate the contestants for scholarship funds they should have received years ago.
Probation Instead of Prison
Rather than serving jail time, Smith’s plea deal includes two years of probation.
If he violates the terms of probation or fails to make restitution payments, he could face additional legal consequences.
Investigation Began After Contestant Complaints
Authorities say the investigation started in 2017 after multiple contestants reported they were not receiving scholarship money they had earned.
The case expanded in 2018 when investigators reportedly searched Smith’s home and seized documents, computers, cameras, and mobile devices as evidence.
That investigation eventually led to the major indictment announced in 2019.
