Former chief of staff to California governor charged in fraud scheme

SACRAMENTO, Calif. (CN) — A political consultant and former chief of staff to Governor Gavin Newsom was arrested Wednesday on accusations she and others diverted money from political coffers for personal use.

Dana Williamson, 53, of Carmichael, also is accused of misrepresenting deductions on her tax returns, including a $150,000 luxury hotel stay for her birthday.

Williamson faces 11 counts of bank fraud, six counts of wire fraud, three counts of subscribing to a false tax return, and one count each of conspiracy to commit bank fraud and wire fraud, conspiracy to interfere with governmental function and obstruct justice, and making false statements, the U.S. Attorney’s Office for the Eastern District of California said.

“This is a crucial step in an ongoing political corruption investigation that began more than three years ago,” U.S. Attorney Eric Grant said in a statement. “As it always has, the U.S. Attorney’s Office will continue to work tirelessly with our law enforcement partners to protect the people of California from political corruption.

Williamson’s indictment was unsealed Wednesday.

One scheme grand jurors accuse Williamson of involves funneling money to Sean McCluskie, who served as chief of staff to Xavier Becerra, then U.S. Secretary of Health and Human Services. Becerra isn’t named in Williamson’s indictment. McCluskie faces a charge of conspiracy to commit bank fraud and wire fraud.

Ethics rules prohibited the use of Becerra’s campaign account, as he was a federal officer at the time. In early 2022, Williamson — then working in public affairs and lobbying — agreed with McCluskie to bill the dormant campaign account $7,500 a month for consulting services. The funds would subsidize $10,000 payments Williamson made each month to McCluskie, grand jurors say in the indictment.

Williamson and McCluskie made false statements and omissions to Becerra about the payments, as well as to an attorney and law firm, grand jurors say.

Williamson paid the $10,000 each month to an entity controlled by Greg Campbell. In turn, that entity paid the money into a bank account controlled by McCluskie, grand jurors say.

Campbell faces charges of conspiracy to commit bank fraud and wire fraud and conspiracy to defraud the United States and obstruct justice.

Purportedly, the money was payment for McCluskie’s spouse who’d performed work for Williamson, though no work had occurred, grand jurors add.

According to grand jurors, Williamson had an unnamed co-conspirator take her role in late 2022 as she prepared to join Newsom’s administration.

Williamson served in that role for about two years, leaving in December 2024. Newsom’s name appears nowhere in her indictment.

In total, some $225,000 in campaign funds were stolen, grand jurors say.

Williamson also faces accusations linked to the Covid-19 paycheck protection program.

Grand jurors say an investigation into Williamson’s lobbying business by the Small Business Administration and U.S. Attorney’s Office happened in September 2023. That investigation in January 2024 led to a subpoena for documents related to her company’s eligibility for those loans.

In July 2024, Williamson met with Campbell and an unnamed person, asking for Campbell’s help in creating a contract she could show documenting business between two companies — despite no business relationship existing, grand jurors say.

Campbell then had an employee make three contracts that were backdated. Those contracts also had false statements about their business arrangement, they add.

Additionally, grand jurors say that William, on her 2021, 2022 and 2023 tax returns, made false business deductions that were, in fact, personal expenditures. They included a $15,353 Chanel handbag and ring, an almost $10,000 watch for a close friend, a $21,175 private jet charter and $156,302 for a luxury hotel stay in Mexico.

In November 2024, Williamson made false statements during an FBI interview about, among other things, the dormant campaign account payments and paycheck protection program investigation, grand jurors say.

“Ms. Williamson no longer serves in this administration,” a spokesperson for the governor’s office said in a statement to Courthouse News. “While we are still learning details of the allegations, the governor expects all public servants to uphold the highest standards of integrity. 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.”