Newsoms

A bombshell federal fraud case exploded inside Newsom’s powerful orbit

As Gov. Gavin Newsom flew around the country last year campaigning for President Biden and Vice President Kamala Harris, his chief of staff Dana Williamson — known as one of California’s toughest political insiders — was not only helping to helm the ship in Sacramento, but under criminal investigation by federal law enforcement.

The resulting criminal case, which splashed into public view with Williamson’s arrest Wednesday, does not implicate Newsom in any wrongdoing. Williamson’s alleged misdeeds occurred in private work prior to her joining his staff, and his office said it placed her on leave in November 2024 after she informed him she was under investigation.

Nonetheless, the bombshell allegations struck at the center of the political power circle surrounding Newsom, rattling one of the nation’s most prominent and important hubs of Democratic state power at a time when President Trump and his Republican administration wield power in Washington.

Williamson was charged with bank and tax fraud for allegedly siphoning campaign and COVID-19 recovery funds into her and an associate’s pockets and claiming personal luxuries as business expenses on tax forms. According to the indictment, the campaign funds were drawn from a dormant state account of another top California Democrat: gubernatorial candidate and former U.S. Health and Human Services secretary Xavier Becerra.

Two other well-connected aides in state politics were also charged — and struck plea deals confirming the scheme — while a third, with deep ties to one of the most well-connected circles of political and business consultants in the country, appeared in charging documents as an uncharged co-conspirator.

Williamson’s attorney McGregor Scott, a former U.S. attorney in Sacramento, told The Times on Wednesday that federal authorities had approached Williamson more than a year ago, seeking help with some kind of probe of the governor himself.

“She told them she had no information to provide them, and then we wind up today with these charges,” Scott said. The nature of that alleged probe is unclear.

Newsom’s office on Thursday said it was “not aware of any federal investigation involving the governor.”

Lauren Horwood, a spokesperson for the U.S. attorney’s office in Sacramento, said she could not confirm or deny the existence of any investigation involving Newsom, in accordance with Justice Department policy. None of the charging documents released in the cases against the three aides mention Newsom.

A loquacious liberal foil to Trump and likely 2028 presidential contender, Newsom has been in Brazil since Sunday and on Wednesday left for a planned trip into the Amazon with a small delegation after attending the United Nations climate summit known as COP30. He left the conference before news of Williamson’s arrest, and could not be reached directly by The Times for comment.

In his absence, Newsom’s representatives have tried to draw a connection between the federal case and the contentious relationship between California and the Trump administration, though offered no evidence that the investigation was influenced by the White House.

“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,” a Newsom spokesperson said Wednesday.

“Under the Trump administration, the DOJ routinely targets the state, which has resulted in us suing the federal administration 46 times,” a Newsom spokesperson said Thursday.

Trump and his administration have been accused of using their power — and control over the Justice Department — to go after his political enemies. Charges reportedly deemed weak and unfounded by career prosecutors have been brought forward anyway against former FBI Director James Comey and New York Atty. Gen. Letitia James, while Sen. Adam Schiff (D-Calif.) is being investigated for years-old occupancy claims in mortgage documents. All have denied wrongdoing.

The case against Williamson and the other California aides, however, is something different — originating years ago under the Biden administration.

“Today’s charges are the result of three years of relentless investigative work, in partnership with IRS Criminal Investigation and the U.S. Attorney’s Office,” FBI Sacramento Special Agent in Charge Sid Patel said Wednesday.

Abigail Jackson, a White House spokesperson, rejected the notion that the case was in any way driven by the Trump administration or politically motivated.

“What an absurd claim to make when public reporting has already noted that this investigation began under the Biden DOJ,” Jackson said. “The Trump administration is restoring integrity and accountability to the Justice Department.”

Prosecutors also have plea deals with two of the primary suspects in the case, in which they corroborate some of the allegations.

According to the 23-count indictment, unsealed Wednesday morning, Williamson conspired with Sean McCluskie — a former top aid to Becerra — and lobbyist Greg Campbell to bill Becerra’s dormant state campaign account for bogus consulting services. The three allegedly used shell companies to funnel money out of the campaign fund starting in 2022.

Federal authorities alleged the bulk of the payments were made to McCluskie’s wife, who did not actually provide consulting services, and deposited into an account accessed by McCluskie. Becerra, who has not been accused of wrongdoing, said Wednesday’s charges alleging “impropriety by a long-serving trusted advisor are a gut punch,” and that he was cooperating with authorities.

In addition, Williamson was charged with falsifying documents for a COVID-era small business loan, and with claiming luxury goods and services — including a $15,353 Chanel purse, $21,000 in private jet travel and a $150,000 birthday trip to Mexico, complete with an $11,000 yacht trip — as business expenses on her tax returns, federal prosecutors said.

Williamson appeared in federal court in Sacramento on Wednesday afternoon, and pleaded not guilty to the charges.

Williamson’s attorney said he has been in “regular communication” with federal prosecutors about the case for some time, and had asked to meet with prosecutors to “present our side” before any charges were brought, but that request “was not honored.”

Instead, officials “chose grandstanding instead of the normal process” and arrested Williamson at home Wednesday, despite her being seriously ill and in need of a liver transplant, Scott said. Williamson could not be reached for comment directly.

Williamson previously worked as a Cabinet secretary to former Gov. Jerry Brown, who also could not be reached for comment Thursday.

The case against Williamson is bolstered by acknowledgments of guilt from at least two others.

McCluskie — a former chief deputy attorney general of California when Becerra was attorney general — pleaded guilty to conspiracy to commit fraud and is cooperating with authorities, court filings show. He could not be reached for comment.

Campbell pleaded guilty to conspiracy to commit fraud and conspiracy to defraud and commit offenses against the U.S. government. Campbell’s attorney Todd Pickles said his client “takes full accountability for his actions and is cooperating fully with the legal process.”

The case also involves another longtime California political insider: Alexis Podesta, a former secretary of the California Business, Consumer Services and Housing Agency who Newsom appointed to the State Compensation Insurance Fund board of directors in January 2020. A spokesperson for the board confirmed Podesta remained a member as of Thursday morning.

Bill Portanova, Podesta’s attorney, confirmed to The Times that Podesta is the person identified as “Co-Conspirator 2” in charging documents — including McCluskie’s plea agreement, which alleges she funneled the campaign funds to him.

Portanova said Podesta inherited responsibilities for handling the Becerra account from Williamson when Williamson left to become Newsom’s chief of staff. Podesta did not perceive anything “unusual about the accounts, how they were set up or who had set them up,” so continued making payments as previously arranged, Portanova said.

However, “when confronted with the information that it was improper payments,” Portanova said, she immediately stopped the payments, and “has been fully cooperative with the federal authorities at every stage of these proceedings.”

He said she is not charged, and “should not be charged” moving forward. He otherwise declined to comment, as “investigations are ongoing.”

Podesta had close ties to some of the most influential Democratic political consultants in California, adding to the intrigue surrounding the case.

In September 2020 — about eight months after Newsom had appointed Podesta to the insurance board for workers’ compensation — Politico reported on a new “influence superteam” of Democratic political consultants forming in California.

The project, it said, would be called the Collaborative. Among its “architects” were Williamson and Campbell, as well as Jim DeBoo, another former Newsom chief of staff. Its managing director, the outlet reported, would be Podesta.

Among its enlisted consultants, it said, would be Sean Clegg of Bearstar Strategies, another senior advisor to Newsom, and Shannon Murphy, of M Strategic Communications, who has ties to Los Angeles Mayor Karen Bass.

DeBoo, Clegg and Murphy have not been accused of any wrongdoing.

“Bearstar participated in a joint marketing press release with the Collaborative and worked on one campaign with the Collaborative’s members in 2022. Bearstar and its partners had no interest, stake or other involvement with this entity,” David Beltran, a representative of Bearstar, said in a statement Thursday.

Murphy also released a statement about the enterprise: “Five years ago, our firm participated in a joint-marketing effort. We had zero ownership or role in the business entity that was created and had no knowledge of its finances or operations until yesterday’s news stories.”

DeBoo did not respond to requests for comment Thursday.

Members of the Collaborative advise some of the largest companies in not just the country, but the world.

The Collaborative’s website was recently scaled down to a simple landing page, but it previously touted itself there as “the hub for the most talented public affairs, campaign, crisis management, communications and lobbying firms in California,” providing clients “the ability to choose one or several firms that work together — rather than compete — to provide their clients with the best possible outcomes.”

The website led with what it called a proverb: “If you call one wolf, you invite the pack.”

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Feds charge Gov. Newsom’s former chief of staff over alleged fraud, tax crimes

Gov. Gavin Newsom’s former chief of staff was arrested Wednesday on federal charges that allege she siphoned $225,000 out of a dormant state campaign account and wrote off $1 million for luxury handbags and private jet travel as business expenses on her tax returns.

According to the 23-count indictment, unsealed Wednesday morning, political consultant Dana Williamson and her employees Greg Campbell and Sean McCluskie billed the dormant campaign account for bogus consulting services through shell companies they controlled starting in the spring of 2022.

Many of those payments went to McCluskie’s wife, federal authorities allege.

The indictment does not name the California politician whose campaign fund the trio allegedly drained.

Williamson left her job at the statehouse last December.

“Today’s charges are the result of three years of relentless investigative work, in partnership with IRS Criminal Investigation and the U.S. Attorney’s Office,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI will remain vigilant in its efforts to uncover fraud and corruption, ensuring our government systems are held to the highest standards.”

Williamson is scheduled to make an initial court appearance Wednesday afternoon in Sacramento.

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Passage of Prop. 50 brightens Newsom’s national prospects

California voters delivered a major victory for Democrats nationwide Tuesday — and possibly for Gov. Gavin Newsom’s political ambitions — by passing a redistricting plan that could help the party seize as many as five congressional seats in the 2026 midterm elections.

The ballot measure was seen as a searing denunciation of President Trump and his administration’s policies, which have included divisive immigration raids, steep tariffs, cuts to healthcare and a military occupation of Los Angeles.

Proposition 50 was launched at warp speed in August in an attempt to counter President Trump’s successful attempt to pressure Republican-led states, most notably Texas, to gerrymander their own states to keep Democrats from gaining control of the U.S. House of Representatives after the 2026 midterm elections. If Democrats gain power they could imperil his agenda and launch investigations into his administration.

“After poking the bear, this bear roared,” Newsom said Tuesday night shortly after the polls closed and the Associated Press determined Proposition 50 had passed.

Newsom said he was proud of California for standing up to Trump and called on other states with Democrat-controlled legislatures to pass their own redistricting plans.

“I hope it’s dawning on people, the sobriety of this moment,” he said.

The president, meanwhile, in a post Tuesday morning on his social media site called the vote “A GIANT SCAM” and “RIGGED” and said it is “under very serious legal and criminal review. STAY TUNED!” The White House did not explain what he meant by “serious legal and criminal review.” After the polls closed, Trump again posted, writing enigmatically: “…AND SO IT BEGINS.”

Newsom early Tuesday dismissed Trump’s threats as “the ramblings of an old man that knows he’s about to LOSE.”

Proposition 50 will change how California determines the boundaries of congressional districts. The measure asked voters to approve new congressional district lines designed to favor Democrats for the 2026, 2028 and 2030 elections, overriding the map drawn by the state’s nonpartisan, independent redistricting commission.

The measure, placed by the ballot by the Democratic-led state Legislature and pushed by Newsom, reconfigured the state’s congressional districts in favor of Democrats, shifting five more House districts into competitive or easily winnable territory for Democrats. California has 43 Democrats and nine Republicans in the House; now the number of GOP members could be cut in half.

While Newsom and Democratic partisans framed the passage of Proposition 50 — which they had dubbed the Election Rigging Response Act — as a major blow against Trump’s iron grip on the federal government, it is far from guaranteed to flip the balance of power in the U.S. House, where Republicans hold a slim majority.

For one, spurred on by Trump, Republican-led states are busy pursuing their own redistricting plans. Several Republican-controlled states including North Carolina, Ohio and Missouri are moving ahead.

What’s more, California voters in the fall of 2026 would then have to be convinced to choose Democratic challengers over incumbent Republicans in those newly crafted districts — and many current GOP members of Congress have said they don’t plan to go quietly.

“Here’s something Newsom and his cronies don’t know: It won’t work,” said Congressman Darrell Issa, a San Diego-area Republican whose seat was targeted by the newly redrawn maps. “The worst gerrymander in history has a fatal flaw. Voters get to pick their representatives. Not the other way around. I’m not going anywhere.”

Congressman Doug LaMalfa whose Northern California district was carved up and diluted with left-leaning coastal voters, said he was “standing in the fight. They’re not going to kidnap my district here without a battle.”

What is sure, however, is that Proposition 50 is a big win for Newsom, who has propelled his fight with Trump onto the national political stage as one of the loudest voices standing against the new administration.

Campaigning for Proposition 50, Newsom mocked Trump on the social media site X with sarcastic, Trumpesque all-caps media posts. The governor won viral fame, guest spots on late-night shows and millions of dollars from Democratic donors around the country delighted to see someone jousting with the president. In recent days, Newsom has begun talking openly about a possible run for president in 2028, after telling CBS last month that he would be lying if he tried to pretend he wasn’t considering it.

The new congressional districts also are expected to set off a mad scramble among ambitious Democratic politicians.

Already, Audrey Denney, a strategist and education director, has announced she will once again mount a campaign against LaMalfa, who represents an area that has been split into two districts saturated with Democratic voters. Former state Sen. Richard Pan, meanwhile, has indicated he intends to target Congressman Kevin Kiley, who saw his hometown of Rocklin yanked out of his district and replaced with parts of more-Democratic Sacramento.

One of the biggest effects of the measure may be the way it has enraged many of the state’s rural voters, and left even those who are registered Democrats feeling as though state leaders don’t care about their needs.

“They think our voices are so small that we don’t count, and because we’re red,” fumed Monica Rossman, the chairwoman of the Glenn County Board of Supervisors in rural Northern California. “This is just one more way of them squeezing us rural people.”

Rossman described Newsom in obscene terms this week and added that “people from urban areas, they don’t realize that us people from One-Taco-Bell-Towns don’t know what it’s like to drive by a dealership and see nothing but battery-operated vehicles. By traffic, we mean Ted’s cows are out again and we have to wait for them to get out of the way. We’re going to have people making decisions about areas they know nothing about.”

But as they headed to polling places across the state, many voters said the Trump administration’s actions in California — from funding cuts to the prolonged immigration raids —convinced them that radical measures were necessary.

Adee Renteria, who came to vote at Our Lady of Guadalupe Church in East Los Angeles decked out from head to toe in celebratory Dodgers gear, said she was voting yes on Proposition 50 because “I want a fricking voice.”

“I want our people to be able to walk the streets without getting kidnapped,” she said, adding that she believed the measure would allow Democrats a chance at fighting back against policies that she said had sown terror in her community.

In Buena Park, Guarav Jain, 33, said he had braved long lines to cast his ballot “to prove that we can fight back on the crazy things Trump says.”

“This is the first chance to make our voice heard since the [presidential] election last November,” he added.

The path to Proposition 50, which ranks as the fourth most expensive ballot measure in California history, began in June. That was when Trump’s political team began pushing Texas Republicans to redraw the lines for that state’s 38 congressional districts to gain five Republican seats and give his party a better shot at holding the House after the midterm elections.

When Texas Gov. Greg Abbott signed on to the idea, Newsom jumped in to announce that California, which has 52 representatives, would counter by redrawing its own districts to try to pick up as many as five seats for Democrats.

“We’re giving the American people a fair chance,” Newsom said in August, adding that California was “responding to what occurred in Texas.”

The move outraged California Republicans and also angered some people, such as former Gov. Arnold Schwarzenegger, who are no fans of Trump. Some opponents argued that it was an affront to an independent congressional redistricting commission that California voters created in 2010 with the passage of Proposition 20 — an effort to provide fair representation to all Californians.

“They are trying to fight for democracy by getting rid of the democratic principles of California.… It is insane to let that happen,” Schwarzenegger said at an event at USC in September. “Doesn’t make any sense to me — that because we have to fight Trump, to become Trump.”

But Schwarzenegger didn’t do much to actively campaign against the measure and the No side was far outgunned financially. Proponents raised more than $100 million, according to campaign finance reports, while the No side raised about $43.7 million.

A star-studded cast of Democratic leaders also flooded the airwaves to support the measure, including Congresswoman Alexandria Ocasio-Cortez of New York and Massachusetts Sen. Elizabeth Warren. President Obama spoke on the issue in ads that aired during the World Series. “Democracy is on the ballot Nov. 4,” the former president said.

The new congressional district maps are only temporary. They will be in place for elections next year and in 2028 and 2030. After that, California’s independent redistricting commission will resume its duties in drawing the maps.

What may be longer lasting, some rural representatives said, is a sense among many in California’s heartland that their voices don’t count.

LaMalfa, the congressman who saw his deep red district divided into two blue urban areas, said many of his constituents — who work in farming, timber and ranching — believe many state policies are “stacked against them and they have nowhere to go.”

“What they do have is a voice that understands their plight and is willing to speak for them. I am one of the people who does that,” he said. “You don’t have that anymore if you have taken all those folks and just drawn them into urban voters districts.”

Times staff writers Sonja Sharp, Katie King and Katerina Portela contributed to this report.

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Gavin Newsom’s gamble on Prop. 50 may be his most calculated yet

Gov. Gavin Newsom stepped to the microphone at the state Democratic headquarters in mid-August with the conviction of a man certain he was on the right side of history, bluntly saying California has a moral obligation to thwart President Trump’s attempt to tilt the balance of Congress.

Over the next 2½ months, Newsom became the public face of Proposition 50, a measure designed to help Democrats win control of the U.S. House of Representatives by temporarily redrawing California’s congressional districts.

Newsom took that leap despite tepid support for a gerrymandering measure in early polls.

With Tuesday’s election, the fate of Proposition 50 arrives at a pivotal moment for Newsom, who last week acknowledged publicly that he’s weighing a 2028 presidential run. The outcome will test not only his political instincts but also his ability to deliver on a measure that has national attention fixed squarely on him.

From the outset, Newsom paired his conviction with caution.

“I’m mindful of the hard work ahead,” Newsom said in August, shortly after lawmakers placed Proposition 50 on the ballot.

It was familiar territory for a governor who has built a career on high-stakes political bets. As San Francisco mayor, his decision to issue same-sex marriage licenses in 2004 made him a progressive icon. It also drew accusations he’d energized conservative turnout that year in the presidential election that ended with George W. Bush winning a second term.

As the state’s newly elected governor, he suspended the death penalty in 2019 despite voters having twice rejected measures to do so, calling it a costly and biased system that “fails to deliver justice” — a move that drew fury from law enforcement groups and victims’ families. His decision to take on Florida Gov. Ron DeSantis in a 2023 prime-time debate hosted by Sean Hannity on Fox News was intended to showcase his command of policy and political agility, but instead fell flat amid an onslaught of insults.

With Proposition 50, Newsom placed himself at the center of another potentially career-defining gamble before knowing how it would land. Ahead of Tuesday’s special election, polling suggests he may have played his cards right. Six out of 10 likely voters support Proposition 50, according to a survey by UC Berkeley’s Institute of Governmental Studies that was co-sponsored by The Times.

“You know, not everybody would have done it,” veteran Democratic strategist Gale Kaufman said. “He saw the risk and he took it.”

If approved by voters, the ballot measure would redraw California’s congressional maps to favor Democrats beginning with the 2026 midterm elections in hopes of discounting Republican efforts to gerrymander more seats for themselves. California introduced the measure in response to Trump and his political team leaning on Republican-led states to redraw their district lines to help Republicans retain control of the House.

The balance of power in the closely divided House will determine whether Trump can advance his agenda during his final two years in office — or face an emboldened Democratic majority that could move to challenge, or even investigate, his administration.

And while critics of the governor see a power-craving politician chasing headlines and influence, supporters say this is classic Newsom: confident, risk-tolerant and willing to stand alone when he believes he’s right. He faced intense backlash from his political allies when he had conservative personality Charlie Kirk as his inaugural guest on his podcast this year, on which Newsom said he believed it was “deeply unfair” for transgender athletes to compete in women’s sports. After Kirk was killed, Newsom regularly brought up that interview as a point of pride, noting the backlash he received from his own party over hosting a Trump ally.

In recent months Newsom struck a deal to stabilize struggling oil refineries, pushed cities to ban homeless encampments and proposed walking back healthcare coverage for undocumented immigrants — a series of moves that have tested his standing with progressives. Supporters say the moves show his pragmatic streak, while critics argue they reflect a shift to the center ahead of a possible presidential run.

“In so many ways, he is not a cautious politician,” said Jessica Levinson, a law professor at Loyola Law School. “His brand is big, bold decisions.”

With Proposition 50, Newsom has cast the redistricting counterpunch as a moral imperative, arguing that Democrat-led states must “fight fire with fire,” even if it means pausing a state independent redistricting process largely considered the gold standard. The measure upends a system Californians overwhelmingly endorsed to keep politics out of the map-drawing process.

Levinson said Newsom’s profile has been rising along with the polling numbers for Proposition 50 as he has booked national television shows like ‘The Late Show with Stephen Colbert” and appeared in an ad in favor of the ballot measure with former President Obama, Massachusetts Sen. Elizabeth Warren and other prominent Democrats that ran during the World Series.

“We are talking about Proposition 50 on a nationwide scale,” Levinson said. “And it’s really hard to talk about Proposition 50 without saying the words ‘Gov. Newsom of California spearheading the effort to pass.’”

California Republicans have called the effort misguided, arguing that the retaliatory response creates a slippery slope that would erode the independent redistricting process California voters have chosen twice at the ballot box.

“When you fight fire with fire, the whole world burns,” said California Rep. Kevin Kiley (R-Rocklin), whose district is among those that would be overhauled under Proposition 50. “Newsom is trying to claim that Texas did a bad gerrymandering, but what California is doing is a good gerrymander because somehow it’s canceling it out … I just think gerrymandering is wrong. It’s wrong in Texas and it’s wrong in California.”

Kiley said Newsom never has been one to shy away from national attention “and for pursing explicitly partisan goals.”

“He’s certainly used this as an opportunity to do both of those things,” Kiley said.

Out of the gate, the redistricting plan had lackluster support. Then came the flood of ads by proponents peppered with talking points about Trump rigging the election.

Supporters of Proposition 50 took in more than four times the amount that opponents raised in recent weeks, according to campaign finance reports filed with the state by the three main committees campaigning about the measure. Supporters of Proposition 50 raised so much money that Newsom told them “you can stop donating.”

Political analysts said the redistricting fight has given Newsom what every ambitious politician craves: a narrative. It’s allowed him to cast himself as a defender of democracy while reenergizing donors. That message sharpened when Trump administration officials said they’d monitor polling sites in several California counties at the state GOP’s request, prompting Newsom to accuse the Trump administration of “voter intimidation.”

Republican strategist Rob Stutzman said the campaign gave Newsom something he’d struggled to find: “an authentic confrontation” with Trump that resonates beyond California.

“And I think it’s worked well for him nationally,” Stutzman said. “I think it’s been great for him in some ways, regardless of what happens, but if it does lose, it’ll hurt the brand that he can win and there will be a lot of disgruntled donors.”

While Newsom has framed the measure as good for the country, Stutzman said it’s clear that Proposition 50 has been particularly good for the governor.

“He’s used it for his own purposes very, very effectively,” Stutzman said. “If he becomes the [presidential] nominee, you could look back and say this was an important part of him getting there.”

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