Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Independent UK
The Independent UK
National
Trn Nguyn

Gavin Newsom’s former chief of staff arrested on fraud, tax and obstruction of justice charges

When Williamson prepared to join Newsom’s office in late 2022, she arranged for “Co-Conspirator 2” — an unnamed former public official — to take over her role in the scheme. - (AP Photo/ Damian Dovarganes)

A former top aide to California Governor Gavin Newsom has been indicted on federal charges, accused of involvement in a scheme to embezzle campaign funds from former federal Health Secretary Xavier Becerra.

Dana Williamson was arrested and was due to make her initial court appearance in Sacramento on Wednesday. It remains unclear whether she has legal representation to comment on her behalf.

The federal indictment names four other co-conspirators, alleging that Williamson was part of a scheme alongside Sean McCluskie, who served as Becerra’s chief of staff at the time of the alleged misconduct.

Becerra, a former California attorney general appointed health secretary by President Joe Biden, is not implicated in the indictment.

Xavier Becerra, a former California attorney general appointed health secretary by President Joe Biden, is not implicated in the indictment. (AP Photo/Nathan Ellgren, File)

Prosecutors claim Williamson and McCluskie established a system to divert approximately $225,000 from Becerra’s inactive campaign account, funneling the money to McCluskie over a period exceeding two years.

According to the indictment, Williamson began helping McCluskie in April 2022 by using her political consulting company to bill Becerra’s campaign account for purported services. The money would then be sent to McCluskie’s wife for work supposedly done for Williamson.

When Williamson prepared to join Newsom’s office in late 2022, she arranged for “Co-Conspirator 2” — an unnamed former public official — to take over her role in the scheme.

Williamson was also charged with falsifying business contracts related to Paycheck Protection Program loans her business received during the COVID-19 pandemic. She allegedly asked an associate to create a retroactive contract saying her company provided services to his company so she would be eligible for the loans and loan forgiveness.

The indictment accuses Williamson of filing fraudulent tax forms for her business from 2021 to 2023 claiming more than $1 million in business deductions for personal expenses, including luxury handbags and jewelry; private jet travel; vacations in Mexico; installation of a home HVAC system; and several hundred thousands of dollars paid to various relatives for fake jobs.

McCluskie signed a plea deal Oct. 30, according to court filings, agreeing to plead to one count of conspiracy to commit bank fraud and wire fraud and to pay $225,000 in restitution to Becerra.

Williamson was Newsom’s chief of staff until late 2024.

In a statement, a spokesperson for the governor said: “Ms. Williamson no longer serves in this administration. While we are still learning details of the allegations, the Governor expects all public servants to uphold the highest standards of integrity.”

Becerra could not immediately be reached for comment.

The investigation began more than three years ago, FBI Sacramento Special Agent in Charge Sid Patel said in a statement. That means it started under the Biden administration.

Williamson faces 23 charges including conspiracy to commit bank and wire fraud, bank fraud, conspiracy to defraud the United States and obstruct justice, subscribing to false tax returns and making false statements, the U.S. Attorney’s Office said.

If convicted she could face up to 20 years in prison.

Williamson is a longtime Democratic power player in Sacramento. She was a Cabinet secretary for former Gov. Jerry Brown before opening her own political affairs firm. She was also Becerra’s campaign manager when he ran for attorney general in 2018, and she later rejoined state government as Newsom’s chief of staff.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.