A man once entrusted with distributing scholarship money to aspiring beauty queens in New Mexico has admitted to stealing funds intended to help young contestants pursue education and pageant crowns. Greg Smith, the former executive director of the Miss New Mexico Scholarship Organization, 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 plead guilty to using the organization's accounts for personal transactions, including the purchase of bull semen for breeding purposes. He pleaded guilty to two counts of embezzlement involving amounts over $250 but less than $500, according to court documents. In exchange, prosecutors dismissed 16 other felony charges that had painted a broader picture of alleged corruption within the state pageant system.
The scandal represents a stunning fall from grace for a man who once held one of the most visible leadership roles in New Mexico's pageant circuit. The case dates back to 2019, when then-New Mexico Attorney General Hector Balderas and Roosevelt County District Attorney Andrea Reeb announced a sweeping grand jury indictment against Smith. 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.
Prosecutors alleged that some of the scholarship money Smith withheld was instead spent on ranching-related purchases connected to his cattle breeding business. 'He was a bull breeder, and he used some of this money even on bull semen,' Balderas said at the time. 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.'
Stephanie Chavez, the 2016 Miss New Mexico pageant winner, emerged as one of the most outspoken figures in the scholarship scandal. 'I feel very relieved with what we've found and I hope that Mr. Smith is held accountable for his actions,' Chavez told KRQE in 2019. She reported Smith to the New Mexico Attorney General's Office after she said nobody listened to her concerns about the withheld scholarship funds. '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,' Chavez said.
Authorities also accused Smith of using the organization's bank accounts for personal financial transactions during his tenure. 'New Mexican women who seek leadership opportunities should not see those opportunities taken by corporate corruption,' 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.'
However, 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 received 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: $2,458.78 to Stephanie Chavez, $6,003.70 to Madison Belcher, and $3,625 to Sherry Smith.
The agreement dramatically reduced Smith's legal exposure after years of facing allegations that threatened his reputation in 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. Smith has not publicly commented on the plea agreement.
