Former Gavin Newsom chief of staff Dana Williamson was arrested and federally charged in a sweeping indictment that accuses her and several associates of siphoning campaign funds, fabricating contracts, and filing false tax returns, touching off a multi-year probe that also implicated a former aide to Xavier Becerra.
Dana Williamson was arrested Wednesday and is facing a 23-count federal indictment that includes conspiracy to commit bank and wire fraud, bank fraud, wire fraud, conspiracy to defraud the United States and obstruct justice, subscribing to false tax returns, and making false statements. Prosecutors say the alleged scheme involved Williamson and at least three other California Democratic operatives who diverted about $225,000 from a dormant campaign account to benefit an associate. The charges are the result of a nearly three-year investigation that began during the Biden administration.
The indictment describes a plan originating in February 2022 involving Sean McCluskie, who at the time was chief of staff to then-California Attorney General Xavier Becerra, later serving as HHS secretary. McCluskie sought additional income without reporting it on federal disclosures, and the charging documents say he and Williamson arranged for campaign funds to be routed through several entities and a payroll provider. After those transfers, funds allegedly landed in the McCluskies’ bank account, characterized on paper as his wife’s salary despite her being a stay-at-home parent with prior media experience.
Prosecutors allege McCluskie and his wife received roughly $225,000 from the dormant campaign accounts, while Williamson’s firm, Grace Public Affairs, received about $74,000. The indictment says Williamson billed the campaign for account management and later, after she moved into the governor’s office as Newsom’s chief of staff in late 2022, brought another person into the arrangement to keep the payments flowing. Two co-conspirators named in the case have already entered guilty pleas tied to the scheme described in the indictment.
The indictment also alleges that Williamson conspired with a business associate to create false, backdated contracts after receiving a civil subpoena in January 2024 from the U.S. Attorney’s Office regarding Paycheck Protection Program (PPP) loans made to Williamson’s business.
Williamson also subscribed to false tax returns claiming more than $1 million in business deductions for what were actually personal and nondeductible expenditures, such as private jet travel, luxury hotel stays, home furnishings, and designer handbags, as well as deductions for no-show jobs for friends and family.
The indictment further claims that after a civil subpoena arrived in January 2024 related to PPP loans, Williamson and a business associate created backdated contracts to shield the origin of funds. The charging documents also allege that Williamson filed tax returns claiming over $1 million in business deductions for personal expenses, including private jet travel, luxury hotels, home furnishings, designer handbags, and payments for no-show positions for friends and relatives. Those detailed allegations form part of the broader fraud and obstruction counts in the indictment.
Newsom reportedly learned in November 2024 that Williamson had been interviewed by the FBI and placed her on administrative leave; she resigned the following month. At the time, Newsom’s office released a statement noting the importance of due process and the expectation that public officials meet high standards of integrity. That statement stressed the principle of being innocent until proven guilty, while acknowledging evolving details of the matter.
“While we are still learning details of the allegations, the Governor expects all public servants to uphold the highest standards of integrity. At a time when the President is openly calling for his Attorney General to investigate his political enemies, it is especially important to honor the American principle of being innocent until proven guilty in a court of law by a jury of one’s peers.”
Xavier Becerra has been identified in the indictment as the official whose dormant campaign accounts were tapped, and he has told reporters he did not know about the alleged scheme. Becerra said he voluntarily cooperated with the Department of Justice investigation and emphasized the need to let the legal process play out. He characterized the accusations against a long-serving advisor as a painful development and pledged continued cooperation with investigators.
“The news today of formal accusations of impropriety by a long-serving trusted advisor are a gut punch. I have voluntarily cooperated with the US Department of Justice in their investigation, and will continue to do so. As California’s former Attorney General, I fully comprehend the importance of allowing this investigation and legal process to run its course through our justice system.”
Williamson appeared in federal court in Sacramento on Wednesday afternoon and entered a plea of not guilty. The case continues to develop as prosecutors outline a mix of financial and documentary manipulation allegations alongside the tax-related counts. With criminal proceedings now under way, the indictment sets up a confrontation in court over a complex alleged scheme that spans campaign accounts, payroll arrangements, and tax filings.
Local reporting and federal filings together sketch a timeline of the conduct detailed in the indictment, and prosecutors say the alleged funneling of funds moved through multiple entities to obscure its origin. The investigation implicates political operatives tied to high-level state figures and raises questions about oversight of dormant campaign funds, payroll arrangements, and the boundary between personal enrichment and political activity. As the matter proceeds in federal court, more details are likely to emerge from discovery and hearings in the case.
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