Former Chief of Staff to California Gov. Gavin Newsom Arrested in $225K Embezzlement Case, Federal Officials Say

Dana Williamson, the former chief of staff to California Governor Gavin Newsom, was arrested Wednesday and charged with orchestrating a complex scheme to steal $225,000 from an inactive political campaign account and funnel it into a friend’s pocket, federal prosecutors announced.

Sweeping Federal Indictment

Williamson, 53, faces a 23-count federal indictment issued by the US Attorney’s Office for the Eastern District of California. The charges include conspiracy to commit bank and wire fraud, defrauding the United States, obstructing justice, filing false tax returns, and lying to authorities. The indictment is the culmination of a three-year investigation led by the FBI and IRS Criminal Investigation.

“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 Sid Patel, FBI Sacramento Special Agent in Charge. “The FBI will remain vigilant in its efforts to uncover fraud and corruption, ensuring our government systems are held to the highest standards.”

Details of the Alleged Scheme

Prosecutors allege that Williamson conspired with several accomplices, including registered lobbyist Greg Campbell, federal employee Sean McCluskie, and two others, to siphon money from a dormant campaign account. The account reportedly belonged to former US Congressman Xavier Becerra, whom McCluskie had served as chief of staff.

Between February 2022 and September 2024, Williamson is accused of funneling $10,000 per month into an account controlled by McCluskie. The payments were disguised as compensation for McCluskie’s wife, who held a “no-show” job—meaning she did not perform any actual work. Prosecutors say the funds were routed through multiple business entities and falsely labeled as legitimate business expenses.

Additional Allegations

The indictment also accuses Williamson of creating fraudulent contracts to obtain COVID relief loans for her company and filing false tax returns. She allegedly claimed over $1 million in personal expenses—including private jet travel, luxury hotels, home furnishings, and designer handbags—as business deductions.

Further, court filings assert that Williamson shared confidential government information with a company involved in litigation against the state of California and later lied to the FBI about her actions.

Williamson’s Political Background

Before joining Newsom’s inner circle in 2022, Williamson ran the consulting firm Grace Public Affairs and served as a senior aide to California governors Jerry Brown and Gray Davis. Her tenure as Newsom’s chief of staff ended in December 2024.

Official Responses

A spokesperson for Governor Newsom responded to the news, stating, “Ms. Williamson no longer serves in this administration. While we are still learning details of the allegations, the Governor expects all public servants to uphold the highest standards of integrity.”

The spokesperson added, “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.”

Newsom himself is not mentioned in the court filings.

Legal Proceedings and Potential Consequences

Williamson is scheduled to appear in federal court in Sacramento Wednesday afternoon. If convicted on all counts, she faces up to 20 years in prison and fines of up to $250,000.

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

Dana Williamson’s arrest marks a significant escalation in the fight against political corruption in California, sending a strong message about accountability and transparency in public service. The investigation and subsequent trial are expected to draw widespread attention as the details of the case unfold.