Dana Williamson, the former Chief of Staff to Gov. Gavin Newsom and ex-campaign manager for Xavier Bacerra, pleaded guilty to fraud on Thursday.
Williamson appeared in federal court to accept a plea deal in the case, submitting a guilty plea to conspiracy to commit bank fraud and wire fraud, subscribing to a false tax return and making false statements to a federal agent.
Driving the news: Williamson and two others – former Fresno lobbyist Greg Campbell and Sean McCluskie – ran a conduit scheme involving a dormant political campaign of Becerra’s.
- They stole around $225,000 from Becerra’s campaign account from February 2022 to September 2024 when he was working in the Biden administration as U.S. Health and Human Services Secretary.
- Becerra, who is currently running for California Governor, had to allow his campaign account to go dormant in order to comply with federal ethics rules while he worked with former President Joe Biden. Becerra previously served as California’s Attorney General.
Zoom in: Williamson, Campbell and McCLuskie funneled the money from Becerra’s campaign account to McCluskie for his personal use.
- They funneled the money through business entities and disguised it as pay to McCluski’es spouse in what actually turned out to be a no-show job.
- Williamson also claimed over $1.7 million in business deductions from 2021 to 2023 when she filed her taxes, yet that spending was actually personal and nondeductible expenditures. Her deductions included food delivery services, luxury vacations to Mexico and Santa Barbara, private jet travel, purported wages for family members, home goods, veterinary services, landscaping services and other personal expenses.
- The false deductions resulted in a tax loss of over $500,000, which Williamson has agreed to pay back to the IRS as restitution.
- Williamson also made false statements about the diversion of campaign funds when questioned by FBI agents last November.
Flashback: Campbell and McCluskie previously pleaded guilty for their parts of the scheme last year.
What we’re watching: Williamson has a status conference scheduled for July 9 regarding her sentencing.
- She faces up to 30 years in prison, a $1 million fine and $225,000 in restitution for conspiracy to commit bank fraud and wire fraud; up to three years in prison, a $100,000 fine and $504,523 in restitution to the IRS for filing a false tax return; and she faces five years in prison and a $250,000 fine for making false statements.
- Campbell and McCluski are scheduled for a status of sentencing hearing on June 4.
What they’re saying: “As part of an investigation that began in 2022, Williamson joins the two others who were charged in the ‘Conduit Scheme’ conspiracy in pleading guilty,” said U.S. Attorney Eric Grant. “These conspirators, three of whom are former public officials, shockingly looted campaign funds for personal benefit. Our office and our law enforcement partners will continue working to protect the integrity of the electoral process and ensure that those who scorn the law are held accountable.”
- “Dana Williamson and her co-conspirators weaponized public trust for personal gain,” said FBI Sacramento Special Agent in Charge Sid Patel. “They stole from a campaign account, fabricated contracts, filed false tax returns, and lied to federal agents. The FBI and IRS Criminal Investigation spent years investigating this case because integrity in public service isn’t optional. No title and no political connection places anyone above the law.”
- “Today’s plea highlights the calculated and far reaching nature of this scheme, which involved using pass through payments, creating fabricated records, and taking steps to mislead federal investigators,” said Linda Nguyen, Special Agent in Charge of IRS Criminal Investigation’s Oakland Field Office. “IRS-CI remains committed to uncovering complex financial fraud and holding those responsible to account.”
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