Federal indictment of Newsom’s former chief of staff implicates high-profile Democrats

By Staff Reporter  November 21, 2025

In a stunning blow to California’s political establishment, Dana Williamson—once the brash, influential chief of staff to Governor Gavin Newsom—finds herself at the center of a sprawling federal corruption probe. Indicted on 23 counts of bank and wire fraud, tax evasion, and obstruction of justice, Williamson’s arrest on November 12, 2025, has ignited speculation about the inner workings of Sacramento’s power brokers.

The allegations paint a picture of a sophisticated scheme involving stolen campaign funds, fake consulting gigs, luxury indulgences disguised as business expenses, and alleged interference in a high-profile sexual harassment lawsuit. While Williamson maintains her innocence, the case has thrust a spotlight on her former boss, Newsom, and a cadre of Democratic operatives, raising questions about accountability at the highest levels of state government.

The rise and fall of Dana Williamson, Sacramento power player

Dana Williamson, 53, is no stranger to the corridors of California power. A foul-mouthed, tenacious operative known for her aggressive negotiating style, she has served three governors: Gray Davis, Jerry Brown (as senior advisor and Cabinet secretary), and most recently, Newsom, where she held the chief of staff role from December 2022 until her abrupt departure in November 2024. Friends describe her as a “savvy bridge-builder” between government, business, and labor, while critics liken her to a “mafia boss” for her combative tactics, including profane outbursts and threats against adversaries.

Before re-entering public service, Williamson founded Grace Public Affairs, representing heavyweights like Meta, Comcast, and gaming giant Activision Blizzard.

As a mother of four and advocate for children’s health, she cultivated an image of fierce loyalty and policy passion. But her career’s revolving door—flipping between lobbying and government roles—drew scrutiny from watchdogs like Consumer Watchdog, who accused her of undue influence. Now, facing potential decades in prison, Williamson’s downfall stems from a three-year FBI investigation that began under the Biden administration and culminated in her tearful courtroom appearance last week, where she pleaded not guilty and faces a jury trial.

It’s widely rumored that former Activision Blizzard CEO Bobby Kotick is likely to be named in a forthcoming indictment that’s expected to allege a quid pro quo agreement related to a settlement of litigation with the State of California.

The core allegations: a scheme of fraud and deception

The federal indictment, unsealed in Sacramento’s U.S. District Court, accuses Williamson of masterminding a multi-year conspiracy from 2022 to 2024 with four co-conspirators.

At its heart: the alleged theft of $225,000 from a dormant campaign account tied to former Attorney General Xavier Becerra‘s “Becerra for Superintendent of Public Instruction 2030” committee. Prosecutors claim Williamson and her allies siphoned the funds in $10,000 increments, laundering them through shell entities like the Podesta Company and Grace Public Affairs. The money was disguised as payments for a “no-show” consulting job awarded to the spouse of Sean McCluskie—a stay-at-home parent with no apparent qualifications—allowing McCluskie, then Becerra’s chief deputy, to inflate his federal salary.

Sean McCluskie allegedly conspired to supplement his federal salary while he was working as Chief of Staff to Secretary Xavier Becerra.

The fraud didn’t stop there. Williamson is charged with falsifying over $1.7 million in business expense deductions on her tax returns, including a $15,000 Chanel handbag and earrings, a chartered jet flight, and a lavish $170,000 birthday trip to Mexico rebranded as “client entertainment.”

She also allegedly conspired to backdate fake contracts to justify $2.5 million in Paycheck Protection Program (PPP) loans for her firm during the COVID-19 pandemic, misrepresenting the funds as business costs rather than personal luxuries like a home HVAC system.

A particularly explosive thread involves the 2021 state lawsuit against Activision Blizzard, which accused the company of fostering a toxic “frat boy” culture rife with sexual harassment and discrimination. Williamson, who lobbied for Activision pre-Newsom, is accused of using her chief of staff perch to pressure state attorneys into a swift settlement.

In January 2023, she reportedly instructed a high-ranking official to “move the lawsuit to a different part of the state government and get it settled,” leading to a $54 million deal in late 2023—without Activision admitting wrongdoing. When whistleblower Melanie Proctor, a former state attorney, filed public records requests probing the administration’s role, Williamson allegedly plotted to bury them, deriding Proctor as a “fucking idiot” in FBI-recorded conversations.

Recordings, documents, and guilty pleas

The case against Williamson rests on a mountain of damning evidence, including over 27,000 pages of documents and 750 gigabytes of digital data handed over in discovery.

Campaign finance records trace the illicit transfers from Becerra’s account to McCluskie’s spouse, while receipts detail Williamson’s luxury splurges. A pivotal 2022 text from Williamson reads, “I’m scared,” in reference to the money-laundering plot, underscoring her awareness of the risks.

FBI audio recordings capture her unfiltered rage: In a June 2024 call with co-conspirator Alexis Podesta, Williamson and Podesta dismissed Proctor’s records request with expletives—”Fuck her,” Podesta said; “They really don’t [know who they are messing with]. It’s bad for them,” Williamson replied. Prosecutors also cite lobbying disclosures showing Activision paid $240,000 to ally Greg Campbell during the settlement push.

Bolstering the case are guilty pleas from two co-conspirators: Campbell, a prominent lobbyist, and McCluskie, who admitted to the conspiracy and are now cooperating witnesses. Their testimony could prove devastating at trial. The investigation, led by the FBI’s Sacramento field office, spanned three years and involved wiretaps, informants—including a wired member of Williamson’s inner circle—and subpoenas.

Special Agent in Charge Sid Patel hailed it as “relentless investigative work” exposing “a gut punch” to public trust.

The investigation’s trajectory, from arraignment to trial

Williamson was arrested at her Carmichael home in a dramatic dawn raid, despite her attorney’s pleas for a voluntary surrender—citing her placement on a liver transplant list. She posted a $500,000 unsecured bond (secured by her $1.7 million mansion, purchased amid the probe) and surrendered her passport, remaining under supervision.

Her attorney, McGregor Scott, decried the arrest as “grandstanding” by the Justice Department. The probe originated under the Biden administration and Williamson declined to assist in a separate FBI inquiry into Newsom.

With Campbell and McCluskie flipped, prosecutors may seek more pleas or expand charges. Podesta, an unindicted co-conspirator who inherited Williamson’s clients, ended improper payments upon advice and is fully cooperating. An unnamed former public official remains a wildcard. Trial is pending, but the case’s breadth suggests months of pretrial motions and potential appeals. Becerra, blindsided by the campaign theft, called it a “gut punch” and confirmed his cooperation with investigators.

Governor Newsom could be implicated

Governor Newsom, eyeing a 2028 presidential bid amid clashes with President Trump, insists he was “not privy” to the probe and placed Williamson on leave in 2024 upon learning of it. His office emphasizes that none of the fraud occurred during her tenure and that he expects “the highest standards of integrity” from aides.

Spokesperson Izzy Gardon reiterated: “While we are still learning details… the governor expects all public servants to uphold the highest standards.”

Yet, cracks in the firewall emerge. The Activision interference allegations occurred squarely under Newsom’s watch, with Williamson allegedly leveraging administration resources for a former client. Critics, including Republican Rep. Kevin Kiley, demand Newsom explain why he retained her post-2022 texts and recordings.

Her attorney revealed the FBI approached Williamson last year to probe Newsom himself, though she demurred, citing no dirt. Newsom’s chief of staff, Nathan Barankin, shot back: “There is no basis for any federal investigation into the governor.”

If cooperating witnesses testify to Williamson briefing Newsom on the schemes—or if the wired informant implicates higher-ups—the scandal could tarnish his reformist image. For now, it’s guilt by association, but in scandal-prone Sacramento, that can suffice to fuel national headlines.

Rep. Kevin Kiley (R-CA) has railed against corruption in Governor Gavin Newsom’s administration. 

A Cast of Influencers: Other Figures in the Fray

Williamson’s web ensnares several Sacramento stalwarts:

  • Greg Campbell: A top lobbyist and Williamson confidant, he pleaded guilty to conspiracy and tax fraud, funneling Activision cash while cooperating. His firm handled the no-show payments.
  • Sean McCluskie: Becerra’s ex-chief deputy, now in the Biden administration, admitted to the $225,000 theft for his spouse’s phantom role. His plea could expose more Biden-era ties.
  • Alexis Podesta: Democratic consultant and ex-Brown secretary, she routed funds and joined Williamson’s Activision lobbying but stopped upon legal advice. Uncharged, her cooperation includes the damning recordings.
  • Xavier Becerra: The dormant account’s owner and Health and Human Services Secretary in the Biden administration, he claims ignorance but faces questions over lax oversight.

Peripheral names like Insurance Commissioner Ricardo Lara and ex-PG&E exec Nancy McFadden surface in Williamson’s orbit, though uncharged. The indictment hints at a “hidden world” of operatives trading influence, with one unnamed ex-official as a potential linchpin.

Alexis Podesta is from a prominent family of national Democratic Party operatives. She is now a cooperating witness.

A reckoning for California politics?

As Williamson fights for her freedom—and possibly her life, given her health crisis—this scandal lays bare the blurred lines between public service and private gain in the Golden State.

For Newsom, it’s a timely reminder that Sacramento’s shadows can eclipse even national ambitions. With trials looming and witnesses talking, the full story may yet ensnare more than one fallen power broker. In a city built on deals, the real corruption may be how long it took to uncover them.

Salacious details in Williamson’s indictment

The 23-count federal indictment against Dana Williamson, unsealed on November 12, 2025, in the U.S. District Court for the Eastern District of California, paints a vivid picture of alleged corruption, personal extravagance, and backroom influence-peddling.

While the core scheme involves siphoning $225,000 from a dormant campaign fund belonging to former California Attorney General Xavier Becerra and funneling it through shell companies for a “no-show” consulting job paid to the spouse of Becerra’s former chief deputy, Sean McCluskie (a stay-at-home parent at the time), the document’s juiciest elements revolve around lavish personal indulgences, profane threats, and meddling in a high-stakes sexual harassment scandal.

Below are the standout salacious allegations, drawn directly from the indictment and related court filings:

  • Luxury Splurges Masquerading as Business Expenses: Williamson is accused of claiming over $1 million in fraudulent tax deductions for personal luxuries, including a $15,353 Chanel handbag, a $5,818 Fendi wallet, and more than $10,000 spent at an unnamed California theme park (possibly Disneyland, per speculation in filings). Other write-offs include home furnishings and payments for no-show jobs benefiting friends and family—turning public-tied funds into a personal shopping spree.
  • A $150,000 Birthday Bash in Mexico, Yacht Included: Prosecutors allege Williamson expensed a lavish $150,000 birthday trip to Mexico as “client entertainment,” complete with an $11,000 yacht excursion. This was part of the broader tax fraud scheme, where she allegedly disguised globe-trotting indulgences—like a $21,000 private jet flight—as deductible business costs, amassing deductions that dwarfed legitimate expenses.
  • Meddling in a “Frat Boy Culture” Sexual Harassment Bombshell: While chief of staff to Gov. Gavin Newsom, Williamson is accused of using her position to pressure state attorneys into settling a 2021 lawsuit alleging that Activision fostered a toxic environment of sexual harassment, discrimination, and suicide. Activision was a former client.  In early 2023, she reportedly shared confidential state info with Podesta and instructed a high-ranking official to “move the lawsuit to a different part of the state government and get it settled” by January. The case resolved for $54 million later that year without Activision admitting fault, amid complaints from fired state counsel Janette Wipper that the governor’s office was interfering. Activision paid allied lobbyists, including Greg Campbell, $240,000 during this period, fueling allegations of quid pro quo.
  • Backdated Lies and a Dramatic Court Breakdown: To cover tracks on $2.5 million in Paycheck Protection Program (PPP) loans during COVID, Williamson allegedly conspired to fabricate and backdate contracts after a January 2024 subpoena, then lied to FBI agents about the diversions, her role, and public corruption ties. Her arrest played out like a soap opera: raided at dawn despite pleas for voluntary surrender due to her recent placement on a liver transplant list, she appeared in court in an oversized gray hoodie, initially stoic but dissolving into soft sobs as charges were read.

These details, substantiated by over 27,000 pages of documents, wiretaps, and cooperating witnesses (including Campbell and McCluskie, who pleaded guilty), underscore a narrative of unchecked excess and abuse of power.

Williamson has pleaded not guilty, with her attorney decrying the probe’s timing, but the indictment’s colorful accusations have already captivated tabloids and late-night monologues.

Trial is pending, potentially unearthing even more lurid revelations.

Former Secretary of Health and Human Services, Xavier Becerra, claims that he didn’t know anything about the scheme, despite owning the bank account through which it was conducted.  Many political observers believe that federal prosecutors are currently pressuring Williamson to become a cooperating witness against Becerra. 

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