Senior California Aide Arrested in Federal Fraud Probe
A former top aide to California Governor Gavin Newsom has been arrested and indicted on multiple federal charges, accused of orchestrating a sophisticated scheme to embezzle campaign funds from former US Health Secretary Xavier Becerra.
Dana Williamson, who served as Newsom's chief of staff until late 2024, was taken into custody and made her initial court appearance in Sacramento on Wednesday. The indictment alleges she participated in a conspiracy to divert approximately $225,000 from Becerra's inactive campaign account over more than two years.
The Elaborate Embezzlement Scheme
According to federal prosecutors, Williamson began assisting Sean McCluskie, Becerra's then-chief of staff, in April 2022. The scheme involved Williamson using her political consulting firm to bill Becerra's campaign account for services that were never rendered.
The funds were then allegedly funneled to McCluskie's wife for work supposedly performed for Williamson's company. When Williamson prepared to join Newsom's office in late 2022, court documents reveal she arranged for an unnamed former public official, identified only as "Co-Conspirator 2," to take over her role in the operation.
McCluskie has already signed a plea agreement on 30 October, agreeing to plead guilty to one count of conspiracy to commit bank and wire fraud and to pay $225,000 in restitution to Becerra.
Additional Fraud and Tax Charges
The indictment reveals further serious allegations beyond the campaign fund scheme. Williamson faces charges related to falsifying business contracts for Paycheck Protection Program loans her company received during the COVID-19 pandemic.
Prosecutors claim she asked an associate to create a retroactive contract stating her firm had provided services to his company, making her eligible for both the loans and subsequent loan forgiveness.
Perhaps most strikingly, Williamson is accused of filing fraudulent tax returns for her business from 2021 to 2023, claiming more than $1 million in business deductions for personal expenses including:
- Luxury handbags and jewellery
- Private jet travel
- Vacations in Mexico
- Home HVAC system installation
- Several hundred thousand dollars paid to relatives for non-existent jobs
Political Fallout and Potential Consequences
In response to the allegations, a spokesperson for Governor Newsom stated: "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, who served as California attorney general before his federal appointment and is not implicated in the indictment, could not immediately be reached for comment.
The FBI investigation began more than three years ago, according to FBI Sacramento Special Agent in Charge Sid Patel, meaning it commenced under the Biden administration.
Williamson now faces 23 separate charges including conspiracy to commit bank and wire fraud, bank fraud, conspiracy to defraud the United States, obstructing justice, subscribing to false tax returns and making false statements. If convicted on all counts, she could face up to 20 years in prison.
The case represents a significant fall from grace for Williamson, a longtime Democratic power player in Sacramento politics. She previously served as cabinet secretary for former Governor Jerry Brown before establishing her own political affairs firm, and managed Becerra's successful 2018 campaign for attorney general before joining Newsom's administration as chief of staff.
