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A former Becerra aide pleaded guilty in a fraud case. I still have questions

Dana Williamson, one of the political heavyweights at the center of a financial scandal involving gubernatorial candidate Xavier Becerra, looked shell-shocked Thursday morning in a federal courtroom in downtown Sacramento, as most folks do when bad choices collide with the hard realities of the justice system.

A thousand-yard stare in her eyes, Williamson responded “guilty” three times in a voice that required a microphone to be heard as the judge walked her through a plea deal reached days before with the U.S. Department of Justice. She likely won’t be sentenced until fall (possibly close to the general election) but will — again, just a likely here — at best face home confinement and at worst upward of three years in prison.

It’s a colossal fall for a woman who wasn’t so much a consultant as a political operative to Becerra, Gov. Gavin Newsom, former Gov. Jerry Brown and a slew of companies including Meta and PG&E. She was known at the Capitol as a woman who got things done, sometimes with finesse, sometimes not.

It was her savvy and ability to deliver whatever was needed through her deep connections and knowledge of the complicated structures — official and cultural — that govern the California halls of power that make her predicament all the more confounding. Especially because, far from stealing money for self-enrichment, she actually paid money to be part of this scheme.

That alone, to me, raises questions.

Though Williamson’s guilty plea may seem like an ending to the saga, it shouldn’t be, because there’s still a lot lurking in the dark corners of this deal.

If Becerra makes it past the primary, which seems (I’ll use that word again) likely, voters have a right to know.

Here’s the simple backstory, according to court documents. Becerra’s close aide, Sean McCluskie, took a pay cut to remain with his boss when he moved to Washington to become President Biden’s secretary of Health and Human Services.

Strapped for cash, McCluskie asked Williamson to receive money from Becerra’s dormant campaign account — which Becerra was legally not allowed to manage while holding federal office — and pass it through a bunch of other accounts before giving it to McCluskie’s wife as payment for a nonexistent job.

Williamson’s attorney, McGregor Scott, said Thursday that Williamson received $7,500 each month from the Becerra account and added $2,500 from her own funds before sending it on to ultimately reach McCluskie — for a total of $10,000 a month.

McCluskie was “living on a government salary,” Scott said Thursday after court. “Wife is home with the kids. They didn’t have enough money, and that’s where this all originated. [Williamson] was simply trying to help a friend in a pinch as best she could.”

Scott, a former Bush and Trump United States attorney, managed to get Williamson’s original 23-count indictment knocked down to the Becerra account issue, along with lying to the FBI and filing a false tax return.

McCluskie entered his own guilty plea in the case last November and is scheduled to be sentenced, along with the third lobbyist, in June.

Becerra, who is a slim-margin front-runner for governor, was the victim in this case — or more precisely, his state campaign bank account was, according to court documents.

There has never been any indication that Becerra was investigated as a participant, and he has forcefully denied wrongdoing, calling it a “gut punch” that his advisers allegedly betrayed him.

That, of course, hasn’t stopped the other candidates from using the case against him.

“My opponents have spent millions spreading lies to purposefully mislead voters,” he wrote Thursday on social media. “Today confirms what I have said from day one: I did nothing wrong. Case closed.”

Meanwhile, Scott, the attorney, also said Thursday that Williamson assumed, based on her conversations with McCluskie, that McCluskie had spoken to Becerra about the concept of the money transfer. Text messages in court records show a brief and ambiguous exchange between McCluskie and Williamson that backs that up.

Scott said that Williamson never spoke directly with Becerra about the scheme.

That leaves the distinct possibility that Williamson believed Becerra knew what was happening — but never asked him. Dumb? Maybe. But Williamson isn’t usually dumb.

“The understanding that McCluskie conveyed to my client was it was OK to proceed,” Scott said.

Becerra has repeatedly said he believed the $10,000 a month was a legitimate fee being paid to manage the funds in the dormant account while he could not — though that is an amount above what is usual for such work, as my colleague Dakota Smith has reported.

Becerra has also repeatedly used some variation of the “case closed” line, seemingly hoping to move past this scandal without further answers.

But at the very least, it deserves some kind of mea culpa from Becerra or lessons learned, a more robust conversation than the brush-off it’s been getting. Because either McCluskie is one heck of a con man who rolled both Becerra and Williamson, making both believe what was happening was kosher with entirely different tales, or someone isn’t being entirely honest.

Did Becerra never question why an account with almost no activity was costing so much to manage? Did he never wonder what Williamson was doing to earn all that money? Should he, with his decades of legal and political experience, have seen red flags, even with a trusted adviser? Or is Williamson, facing sentencing, just trying to paint herself in a sympathetic light?

“I’m not trying to paint my client as a victim,” McGregor said. “She’s accepted responsibility today for what she did by pleading guilty. She’s now a felon. So you know, we’re not trying to do anything to dance away from that.”

Williamson may be done dancing, but the music’s still playing, and the fancy footwork of politics continues.

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Former top Schwarzenegger aide agrees to pay $32,500 in fines for shadow lobbying of state officials

Susan Kennedy, the former top aide to Gov. Arnold Schwarzenegger, has agreed to pay $32,500 in fines for shadow lobbying, or advocating for clients before a state agency without registering as a lobbyist, according to documents released Monday.

The state Fair Political Practices Commission’s enforcement staff says Kennedy failed to register though she attempted to influence the California Public Utilities Commission from 2012 through 2014 on behalf of her clients, Lyft Inc. and San Gabriel Valley Water Co. Kennedy was paid $201,000 for the lobbying work.

Kennedy served on the California Public Utilities Commission from 2003 to 2006. She was chief of staff to Schwarzenegger from 2007 to 2011 before she became a consultant.

She signed an agreement with the FPPC enforcement staff admitting to the violations of the state Political Reform Act.

“In this case, the violations were serious since the public and other interested parties were not informed of Kennedy’s lobbying activity,” the agreement says. “While Kennedy maintains she did not intend to qualify as a lobbyist, given her experience and sophistication, she should have been aware at the time that her activity qualified as lobbying.”

The agreement and fines are expected to be approved by the Fair Political Practices Commission on Feb. 15.

The panel has been investigating shadow lobbying for years at the state Capitol and has fined others who have tried to secretly influence state government.

The state defines a lobbyist as someone who receives $2,000 or more in a calendar month to communicate directly, or through an agent, with state officials for the purpose of influencing legislative or administrative action. Such people must register as lobbyists with the state and periodically report who is paying them, how much and for what purpose.

Kennedy failed to register and disclose her payments, resulting in eight violations of the Political Reform Act. In 2012, Lyft Inc. gave Kennedy a $15,000-a-month contract to help “strategic management” of Lyft’s public policy interests, the report said.

Lyft and other ride-hailing firms including Uber were under the scrutiny of the PUC for operating without its approval at the time, and Lyft agreed to pay a fine of $20,000 for operating without the agency’s authority.

After being retained by Lyft, Kennedy contacted CPUC President Michael Peevey, Executive Director Paul Clanon and other staff to convince them that the state should work with the ride-hailing firms, not shut them down.

At Kennedy’s prodding, the California Public Utilities Commission decided to adopt rules on the new industry regarding liability insurance, driver licensing and background checks, driver training programs and vehicle inspections.

James C. Harrison, an attorney for Kennedy, said she “moved immediately once the discrepancy was identified to provide the necessary information requested by the FPPC. Integrity and character are hallmark principles in how Kennedy conducts herself in business, which is why she is acting swiftly and looks forward to its resolution.”

Updates from Sacramento »

patrick.mcgreevy@latimes.com

Twitter: @mcgreevy99


UPDATES:

3:15 p.m.: This article was updated to provide total amount of fines and a comment from Kennedy’s attorney, James C. Harrison.

This article was originally posted at 2:20 p.m.



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Former Fauci aide charged with concealing pandemic emails

Dr. Anthony Fauci, then-director of the National Institute of Allergy and Infectious Diseases, testifies before a Senate committee hearing in 2022 in Washington, D.C. One of Fauci’s former aides has been charged with concealing emails, the Justice Department said Tuesday. Fauci is not implicated in the case. File Photo by Greg Nash/UPI | License Photo

April 28 (UPI) — A former aide to Anthony Fauci faces charges for allegedly concealing emails that involve the origins of the coronavirus pandemic, the U.S. Justice Department said Tuesday.

David M. Morens, 78, worked with Fauci from 2006 to 2022. Fauci, former director of the National Institute of Allergy and Infectious Diseases and chief medical adviser to the president from 2021 to 2022, is not accused of any wrongdoing in the case. Congressional Republicans have been investigating the U.S. coronavirus response, which started during President Donald Trump‘s first administration.

The indictment charges Morens with conspiracy against the United States and destruction and concealment of records in a federal investigation. Prosecutors say that he purposefully concealed emails he’d exchanged with the president of a nonprofit group. This group had worked with a Chinese lab that’s faced scrutiny over a perceived connection to the coronavirus, the Washington Post reported.

The indictment does not name the president or the group, but previous records have shown the former to be Peter Daszak, former president of EcoHealth Alliance, the Post reported. The group received a grant in 2014 to study bat coronaviruses.

Morens was released on his own recognizance after appearing Monday in federal court in Maryland. He has said he tried to keep some records off his government email in part to keep coronavirus misinformation from spreading and to discourage conspiracy theories.

Controversy over the origins of the virus has existed for as long as it’s been known. While many scientists say it jumped naturally from bats to humans through another animal, Trump and his administration have promoted other theories, including that the virus came from a Chinese lab.

Some Republicans hailed the charges against Morens as validation, including Rep. James Comer, R-Kentucky, chairman of the House Oversight Committee.

“I applaud the Trump Justice Department for taking action to hold his public official accountable for hiding information from the American people,” Comer said Tuesday.

Under Trump’s second administration, the White House’s covid.gov website has been changed to a site that promotes the “lab leak” theory, replacing information about vaccines, testing and health issues related to the virus.

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