A former Newsom aide is accused of stealing campaign funds from the former health secretary

SACRAMENTO, Calif. (AP) — Dana Williamson, a former top aide to California Gov. Gavin Newsom, has been indicted on federal charges alleging her involvement in a scheme to steal campaign money from former federal Health Secretary Xavier Becerra.

Williamson was arrested and appeared in court Wednesday in Sacramento. She pleaded not guilty to all charges against her, and the judge ordered her release from custody.

The federal indictment lists four other conspirators. It alleges that Williamson was part of a scheme involving Sean McCloskey, who was Becerra’s chief of staff at the time of the alleged conduct.

Becerra is a former California attorney general who was appointed health secretary by former President Joe Biden. He is not involved in the indictment.

The indictment alleges that Williamson and McCloskey set up a system to take money from Becerra’s dormant campaign account and funnel it to McCloskey, about $225,000 over more than two years.

According to the indictment, Williamson began helping McCloskey in April 2022 by using her political consulting firm to bill Becerra’s campaign account for alleged services. The money would then be sent to McCloskey’s wife for work supposedly done by Williamson.

When Williamson prepared to join Newsom’s office in late 2022, she arranged for “Co-Conspirator 2” — an unnamed former public employee — to take over her role in the scheme.

Williamson told the Los Angeles Times that year that she planned to cut financial ties with her company while working for the governor. However, the indictment includes details of emails, calls and meetings between her and McCloskey regarding the alleged scheme and cover-up while she was Newsom’s chief of staff, a position she held until late 2024.

Williamson was also accused of falsifying business contracts related to Paycheck Protection Program loans her businesses received during the COVID-19 pandemic. She allegedly asked a colleague to create a retroactive contract stating that her company provided services to his company so that it would be eligible for loans and loan forgiveness.

The indictment accuses Williamson of filing fraudulent tax forms for her company from 2021 to 2023 to claim more than $1 million in business deductions for personal expenses, including luxury handbags and jewelry. Travel by private plane; Holidays in Mexico. Installation of a home HVAC system; He paid several hundred thousand dollars to various relatives for bogus jobs.

During her court appearance, Williamson wore a large gray coat with black glasses and pulled her hair back into a bun. At one point, she appeared to cry after answering “yes” to judge Caroline Delaney’s questions. Her lawyer, Matthew Rowan, declined to comment further.

McCloskey signed the plea deal on Oct. 30, according to court filings, agreeing to plead to one count of conspiracy to commit bank fraud and wire fraud and to pay $225,000 in restitution to Becerra.

In a statement, a spokesman for Newsom said: “Ms. Williamson no longer serves in this administration. While we are still learning the details of the allegations, the Governor expects all public employees to adhere to the highest standards of integrity.”

“Today’s news of formal accusations of wrongdoing by a long-time trusted advisor comes as a powerful shock,” Becerra said, adding that he has voluntarily cooperated with the Justice Department in its investigation and will continue to do so.

The investigation began more than three years ago, meaning it began during the Biden administration, Sid Patel, FBI Special Agent in Charge in Sacramento, said in a statement.

The U.S. Attorney’s Office said Williamson faces 23 charges, including conspiracy to commit wire and wire fraud, conspiracy to defraud the United States, obstruction of justice, engaging in false tax returns and making false statements.

If convicted, she could face up to 20 years in prison.

Williamson is a longtime Democratic power player in Sacramento. She was a Cabinet secretary to former Governor Jerry Brown before opening her own political affairs firm. She was also Becerra’s campaign manager when he ran for attorney general in 2018, and later joined state government as Newsom’s chief of staff.

Ding reported from Los Angeles. Associated Press writer Michael R. Blood in Los Angeles contributed.