Williamson

An indictment unveiled this week charging Gov. Gavin Newsom’s former chief of staff with political corruption threw California’s top political circles into chaos — and stirred speculation in the state capital about what triggered the federal investigation.

Authorities have not revealed any targets beyond Dana Williamson and two other influential political operatives associated with the state’s most powerful Democrats, all of whom are accused of fraud and siphoning campaign funds for personal use.

But details contained in the indictment and other public records indicate that the FBI and U.S. Department of Justice had a keen interest in Williamson and other operatives’ involvement in the handling of a legal case involving “Corporation 1.” The facts revealed about “Corporation 1” match details of a controversial sex discrimination investigation that the state of California led into one of the world’s largest video game companies, Santa-Monica based Activision Blizzard Inc.

Williamson — an influential deal-maker and one of the state’s premier Democratic political consultants before and after she ran Newsom’s office — was arrested on corruption charges Wednesday. Two longtime associates, lobbyist Greg Campbell, a former high-level staffer in the California Assembly, and Sean McCluskie, a longtime aide to former state Atty. Gen. and U.S. Health and Human Services Secretary Xavier Becerra, have agreed to plead guilty to related charges.

After Williamson pleaded not guilty in a tearful court appearance Wednesday, her attorney, McGregor Scott, said that federal authorities had charged his client only after first approaching her to seek help with a probe they were conducting into Newsom, the nature of which remains unclear. Williamson declined to cooperate.

The governor has not been accused of any wrongdoing. Still, Republicans already are using the indictments to attack Newsom, who has openly said he is considering a run for president in 2028.

Williamson’s attorney did not offer any specifics on what federal officials may have been investigating.

But numerous threads in the indictment echo details in the Activision saga.

Williamson and Campbell both worked as advisors to Activision Blizzard, according to financial disclosures on file with the state. Williamson reported receiving income from the company prior to her appointment in Newsom’s office, state records show. According to records first filed earlier this year, Campbell disclosed that his lobbying firm started being paid by Activision around the time Williamson joined the governor’s office. Activision reported paying $240,000 to his firm in 2023 and 2024. The amount Williamson was paid from Activision was not disclosed.

Activision officials did not respond to emails requesting comment. Lawyers for Williamson, Campbell and McCluskie also did not respond or declined to comment.

The state’s Department of Fair Employment and Housing in 2021 sued Activision Blizzard, which distributes video games such as “Call of Duty” and “Candy Crush,” alleging that company officials discriminated against women, paid them less than men and ignored reports of egregious sexual harassment.

The complaint alleged that the company: “fostered a pervasive “frat boy” workplace culture that continues to thrive. In the office, women are subjected to “cube crawls” in which male employees drink copious amounts of alcohol as they “crawl” their way through various cubicles in the office and often engage in inappropriate behavior toward female employees. Male employees proudly come into work hungover, play video games for long periods of time during work while delegating their responsibilities to female employees, engage in banter about their sexual encounters, talk openly about female bodies, and joke about rape.”

Activision officials denied the allegations.

The allegations also were investigated by the federal Equal Employment Opportunity Commission. Activision Blizzard agreed to a consent decree, approved in March 2022, with the agency that required the company to set up an $18-million fund for employees who experienced sexual harassment or discrimination, pregnancy discrimination or retaliation.

Just weeks later, the case drew national attention again when the lawyer overseeing the case for the state’s Department of Fair Employment and Housing, Janet Wipper, was fired by the Newsom administration, and her chief deputy resigned and alleged that she was doing so to protest interference of Newsom’s office in the investigation.

“The Office of the Governor repeatedly demanded advance notice of litigation strategy and of next steps in the litigation,” the deputy, Melanie Proctor, wrote to her colleagues. “As we continued to win in state court, this interference increased, mimicking the interests of Activision’s counsel.”

A member of Activision’s board of directors contributed $40,200 for Newsom’s 2018 gubernatorial campaign, and an additional $100,000 to a committee opposing the 2021 recall campaign against Newsom — an effort that failed.

Newsom’s office denied it was meddling. “Claims of interference by our office are categorically false,” Erin Mellon, Newsom’s then-communications director said at the time.

As case continued to grind through Los Angeles Superior Court, the company stepped up its lobbying presence in Sacramento, according to disclosures filed with the state. Documents show Activision began paying Campbell starting in late 2022 to lobby on its behalf.

Around this time, Newsom announced that he was hiring Williamson to be his chief of staff.

In December 2023 the state announced it had reached a settlement agreement with Activision for $54 million, with the bulk of the funds going to compensate women who had been underpaid. The company did not admit any wrongdoing.

The FBI has made inquires about the Activision settlement, though the focus of the inquiry is unclear. When reached last week, Calabasas attorney Alan Goldstein, who handled a sexual harassment suit against Activision, said he received call from an FBI agent looking to probe California’s settlement — but that he couldn’t recall a “substantive conversation.”

Federal investigators were also looking at how Campbell, Williamson and another Sacramento political consultant, Alexis Podesta, conducted their affairs. In unveiling their charges this week, the U.S. Attorney’s office said the investigation began more than three years ago. All three consultants were members of the Sacramento-based Collaborative, a cooperative of top Democratic political operatives.

Podesta from 2017 to 2020 served as secretary of the California Business, Consumer Services and Housing Agency, which included the state’s Department of Fair Employment and Housing — the agency that launched the investigation of Activision in 2018.

Williamson received a federal subpoena for information about her handling of a government loan her business had received during the pandemic, according to details in the indictment. The indictment accused Williamson of spending vast sums on luxury items — including a Gucci bag, Chanel earrings and a $150,000 Mexican birthday vacation and party, plus yacht rental and private jet travel — and then claimed them as business expenses on her taxes.

She and Campbell had also allegedly conspired with McCluskie to siphon money from Becerra’s dormant campaign account to pay McCuskie’s wife for a fake, “no-show” job working for Williamson. When Williamson went to work for Newsom, the indictment alleges, Podesta took over handling the pass through payments.

By June 2024, someone in the circle was cooperating with federal investigators and wearing a wire, recording Williamson’s private conversations, according to transcripts included in the indictment.

On Nov.14, 2024, according to the indictment, FBI agents interviewed Williamson, questioning her about the Becerra campaign funds and about the pandemic funds.

Investigators also asked her about her actions “while serving in public office to influence the litigation involving the State of California and a former client –Corporation 1,” according to the indictment. The indictment doesn’t identify Corporation 1., but details match the Activision litigation. The indictment notes that Corporation 1 was Williamson’s former client and that it was involved in settlement discussions over a lawsuit with the state in 2023. It also references a state lawyer who had been fired in connection with the litigation.

Williamson, according to the indictment, told the FBI she did not pass any inside information to Campbell or other associates outside the government. But based on their recorded conversations, the indictment said, investigators believed that was not true.

They alleged that in January 2023, Williamson, shortly after starting as Newsom’s chief of staff, revealed to Podesta that she had “told a high level government attorney to … get [the case] settled.”

The indictment notes that “Corporation 1” was not only Williamson’s former client, but also now Podesta’s current client.

In June 2024, Williamson complained to Podesta that someone had submitted a California Public Records Act request seeking information about meetings and communications between Newsom officials and the company, according to the indictment.

Proctor, the state attorney who resigned in 2022 and had alleged that the Newsom administration was meddling in the Activision case, posted on her Bluesky social media account in July that she had submitted a public records request on May 29, 2024. She also posted the response from Newsom’s office, showing a meeting in January 2024 in the governor’s office between Williamson, Podesta, and Robert Kotick, the former Chief Executive of Activision.

In their June conversation, according to the indictment, Williamson told Podesta “I just wanted to alert you to the PRAS that we’re starting to get,” the indictment stated. (PRAs refer to public records requests.)

“Yeah. Ugh. F— her. They really don’t know who they are messing with,” Podesta responded.

“They really don’t,” Williamson said.

Podesta, who is identified in the indictment as “Co-Conspirator 2” was not charged. On Thursday she sent a message to numerous associates offering her take on the situation.

“While I cannot discuss the details of the ongoing investigation, I want to state plainly that I have always conducted myself –and my business–with integrity.” She also said that she continued to “cooperate fully with federal authorities.”

On Friday afternoon, McCluskie and Campbell appeared in federal court in Sacramento to be arraigned on conspiracy charges in back-to-back proceedings.

Both men had previously reached plea agreements with prosecutors, and will be back in court to enter those pleas, Mcluskie in late November and Campbell in early December.

Prosecutors did not seek detention for either man, but they were ordered to surrender their passports and avoid associating with other co-conspirators.

In brief remarks to reporters, Campbell’s attorney, Todd Pickles, said that his client “takes full accountability for his actions” and would “in appropriate time further discuss the charges.” But, Pickles noted, those charges “do not include Mr. Campbell engaging in advocacy or lobbying on behalf of any client.”

Times staff writers Katie King and Melody Gutierrez contributed to this report.

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.”

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.

“There’s so much T20 talent there and the next period will be important to get cricket into these guys and get them ready for the World Cup.

“Mitch [Santner] is a brilliant captain and leader – he has really come into his own with this team.

“It’s now their time to push the Black Caps forward in this format and I’ll be supporting from afar.”

The T20 World Cup in India and Sri Lanka starts in February.

Williamson made his T20 debut for New Zealand in 2011 but had not featured since June 2024.

Regarded by many as the best batter in New Zealand history, he is their leading Test run-scorer of all time and fourth on the ODI list.

New Zealand Cricket chief executive Scott Weenink said Williamson had earned the right to decide how he finished his ODI and Test careers.

“We’ve made it clear to Kane he has our full support as he reaches the back end of his illustrious career,” he said.

“We would, of course, love to see him play for as long as possible, but there’s no doubt whenever he does decide to finally call time, he will go down as a legend of New Zealand cricket.”

New Zealand completed a 3-0 clean sweep in the one-day series against England on Saturday, having lost a rain-affected T20 series 1-0 beforehand.