Sacramento — A veteran California political consultant pleaded guilty Thursday to charges related to a scheme to steal campaign funds from Xavier Becerra, now a leading candidate for governor.
In exchange for Dana Williamson’s admission that she committed bank and wire fraud, lied to FBI agents and filed a false tax form, federal prosecutors will dismiss 20 other counts against her, including those related to a federal COVID-19 business loan she received.
The case against Williamson, 53, has taken center stage in the California governor’s race as rivals seek to tie the charges to Becerra, who is a Democratic front-runner. He hasn’t been charged, and prosecutors have painted him as a victim.
There had been speculation in political circles that Williamson’s plea agreement might unearth new details, including about Becerra, a former California attorney general and U.S. Health and Human Services secretary, or Gov. Gavin Newsom, Williamson’s former boss.
But the agreement doesn’t mention any ongoing cooperation with prosecutors regarding the investigation, which started four years ago and has resulted in guilty pleas from two others.
Becerra, in a statement after Williamson’s guilty plea, said, “As I said from day one, I was not involved, I did nothing wrong. And now the record confirms it. We can close the book on this.”
At a Thursday hearing in a federal courtroom in Sacramento, Williamson dabbed her eyes with a tissue before entering her guilty pleas. Wearing a white blazer and black pants, she held her arms close to her body as she stood next her attorney, McGregor Scott.
“These conspirators … shockingly looted campaign funds for personal benefit,” said Eric Grant, U.S. attorney for the Eastern District of California, in a statement. “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.”
Prosecutors said that Williamson, along with Becerra’s then-chief of staff, Sean McCluskie, and lobbyist Greg Campbell, took part in a scheme to siphon money from Becerra’s dormant campaign account and funnel it to McCluskie.
McCluskie needed the money, according to prosecutors, so he could fly home frequently to see his family in California while working for Becerra in Washington, when Becerra was then-President Biden’s Health secretary.
As part of the scheme, Williamson and another consultant charged Becerra first $7,500 and later $10,000 a month to manage one of his dormant state campaign accounts. Those funds were then funneled to McCluskie through various entities.
Becerra approved the payments, even though he had never paid such high sums for similar work. He told The Times that McCluskie told him to pay the fees.
Becerra’s rivals in the governor’s race are hammering him over his decision, arguing he should have known something wasn’t right. Becerra has said that he didn’t know about the criminal behavior and has called the charges a “gut punch.”
Under her plea agreement, Williamson also admitted to claiming about $1.7 million in business deductions on her taxes for what were actually personal expenses, including two vacations to Mexico and veterinary services. She agreed to pay $504,523 to the Internal Revenue Service.
She admitted lying repeatedly to FBI agents, including about the payments to McCluskie.
She could face decades in prison, plus fines and restitution, though Scott said that prosecutors have agreed to a far more lenient sentence based on the complex calculations outlined by federal guidelines. She is expected to be sentenced by a judge in the fall, the attorney said.
Williamson didn’t talk to reporters and was ushered into a black SUV by friends after Thursday’s hearing. Reporters crowded around Scott, asking him about Becerra and whether the candidate knew about the illicit arrangement.
Scott said that Williamson never communicated with Becerra about the payments.
“You’re going to have to ask Mr. Becerra. You’re going to have to ask Mr. McCluskie,” Scott said.
Williamson never financially benefited from the scheme and was “trying to help a friend in a hard time,” said Scott, describing McCluskie’s financial difficulties as he sought to live part-time with family in California and fly to the District of Columbia for work.
“The idea to take money from Becerra originated with Sean McCluskie,” Scott said. “This was his idea.”
McCluskie’s attorney, Daniel Olmos, didn’t immediately respond to a request for comment.
McCluskie worked with Becerra for two decades and was his closest advisor. In an interview last week, Becerra said that McCluskie never told him he was having financial issues.
However, he said he understood that McCluskie’s family situation in California was “tough” and McCluskie was splitting his time between D.C. and the West Coast.
McCluskie and Campbell both pleaded guilty in December.
Known as a hard-nosed and aggressive operator, Williamson worked for former Govs. Jerry Brown and Gray Davis and mentored other women in politics.
Scott reiterated Thursday that federal authorities initially approached Williamson about helping them with an inquiry into Newsom. She refused, he said, and was subsequently charged.
Beyond lying to the FBI about the scheme with McCluskie, Williamson misled federal authorities in their other investigations into corruption at the state Capitol, the plea agreement stated.
One of those investigations involved the state’s handling of alleged sexual harassment at Activision Blizzard Inc., a video game company, details contained in the November indictment against Williamson and other public records show.
Williamson represented Activision as a consultant before she joined Newsom’s office as chief of staff.
Her plea agreement stated that she lied to the FBI when she was interviewed about her role in “passing information to former clients and business partners to give them an advantage in litigation against the state.”
The FBI recorded her strategizing with her former consultant when she worked for the governor on how to avoid responding to a Public Records Act request related to the state’s litigation, according to the plea agreement.