Newsom associate pleads guilty in Becerra fraud case

from Jeanne KuangCalMatters

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A former political consultant to Democratic gubernatorial candidate Xavier Becerra and former aide to Gov. Gavin Newsom pleaded guilty Thursday to conspiracy to commit bank and wire fraud, filing a false tax return and lying to federal investigators.

Consultant Dana Williamson, was indicted in November in a corruption scandal it shocked Sacramento. After an investigation that included an FBI wiretap and seized communications, prosecutors accused Williamson of conspiring with Becerra’s longtime chief of staff Sean McCluskey and another Sacramento lobbyist to divert $225,000 from Becerra’s passive government account into McCluskey’s hands.

As part of the settlement, Williamson agreed to pay $225,000 in restitution to Becerra and $500,000 in restitution to the IRS. She faces sentencing in July.

Williamson’s plea comes just over two weeks before the primary election that will determine whether Becerra advances to the November election.

According to the indictment, the money was to help McCluskey follow Becerra to Washington when he was appointed US Secretary of Health and Human Services in the Biden administration. McCluskey’s job offered a lower salary.

Prosecutors say Democratic operatives charged Becerra’s $10,000-a-month inactive campaign account under the guise of keeping it compliant, but instead directed it to McCluskie in violation of federal laws barring federal employees from engaging in campaign activities.

McCluskey and the other lobbyist, Greg Campbell, pleaded guilty to fraud in the case. Williamson also faced various tax evasion charges and was accused of fraudulently obtaining federal COVID-19 benefits.

The plea deal ends a pending case Becerra’s newly revamped campaign for governor. It’s unclear whether that will have any effect on the crowded race in which Becerra is one of six Democrats are vying for the seat that Newsom is leaving; two Republicans are also in the race.

The timing of the agreement is unusual. Federal prosecutors typically avoid bringing political cases within 60 days of an election under a Justice Department custom designed to prevent interference that might favor or disadvantage candidates. Voters have already started returning their ballots in the governor’s race.

Federal prosecutor Michael Anderson told U.S. District Court Judge Troy Nunley that the plea was the result of months of negotiations between prosecutors and Williamson. Williamson previously rejected a plea offer and made a counteroffer, Anderson said, calling the settlement the “most favorable” outcome for both sides.

Campbell and McCluskey are scheduled to be sentenced June 4, two days after the primary.

Becerra trailed in polling and fundraising until former congressman Eric Swwell dropped out amid sexual assault allegations in early April when he suddenly emerged as the searched anxious Democratic voters for a candidate to rally around.

The case is one of several criticisms that opponents have seized on in debates and negative publicity to question Becerra’s judgment and fitness for executive office.

The allegations were a ‘gut punch’

Prosecutors consider Becerra the victim in the case and he has not been charged with any wrongdoing. He said he cooperated with investigators and that the revelations about McCluskey’s infidelity were a “gut punch” for him, similar to finding out about an unfaithful wife.

But some in the often overlapping circles of interest groups, lobbyists and political strategists in California’s capital question how Becerra could not have known what the payments were for.

During his campaign, Becerra faced questions about whether he should have paid more attention to his campaign spending. Strategists say $10,000 a month — the amount he agreed to be charged — is a high price to maintain the account.

It is common practice in California for members of the official staff of legislators and other officials to also work on their bosses’ political campaigns, allowing them to supplement taxpayer-funded state salaries with payments from campaign accounts. Williamson herself was paid by the California Democratic Party for political work on election measures during the two years she was employed in the governor’s office as Newsom’s top aide. She earned nearly $200,000 from the party in 2024 in addition to her official duties, according to campaign finance records.

Asked by KCRA When asked last month how voters could be sure Becerra would not allow taxpayer funds to be similarly “swindled,” Becerra did not respond.

Williamson was a powerful lobbyist from Sacramento who previously ran the office of Gov. Jerry Brown. When Newsom named her chief of staff in 2023, her clients included criminal justice reform advocates, health care corporation Centene, Meta, Comcast and video game giant Activision.

The indictment accuses Williamson of lying to investigators about whether she used her position in Newsom’s office to influence a gender equality and workplace harassment lawsuit brought by state regulators against Activision. The state later settled that case for $54 million.

Newsom’s office placed Williamson on leave when she informed them she was under investigation in November 2024. He also said the allegations surprised him.

This article was originally published on CalMatters and is republished under Creative Commons Attribution-NonCommercial-No Derivatives license.