Newsom’s ex-chief of staff Williamson indicted in $225,000 fraud ring — DOJ uncovers political ‘no-show job’ scam

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A former top aide to California Governor Gavin Newsom has been arrested and charged in a major fraud and corruption case. The U.S. Department of Justice (DOJ) announced that Dana Williamson, who served as Newsom’s chief of staff until late 2024, faces 23 federal charges. These include conspiracy to commit bank and wire fraud, obstruction of justice, filing false tax returns, and providing false statements to investigators.

Prosecutors allege that Williamson plotted to steal $225,000 from dormant political campaign funds and direct the money to a friend for personal use. Authorities say the illegal activities took place over several years and involved multiple individuals tied to California’s political offices.

The DOJ said the charges are part of a broader corruption investigation that has been ongoing for more than three years. U.S. Attorney Eric Grant stated that protecting citizens from political corruption remains a top priority and promised continued coordination with law enforcement partners to uphold public trust.

DOJ Describes Hidden Transfers and False Contracts

Court documents show that the alleged fraud began in April 2022. Prosecutors say Williamson used her political consulting firm to bill Xavier Becerra’s campaign for services that were never performed. The funds were then sent to Sean McCluskie’s wife under the pretence of work that did not actually take place. McCluskie, identified as a co-conspirator, formerly served as chief of staff to Becerra when he was U.S. Health and Human Services Secretary.

Investigators claim that Williamson’s consulting company submitted invoices for fake political services. Those funds were then secretly funnelled for personal use through a “no-show job.” None of the work described in the billing records ever took place, according to federal authorities.

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When Williamson prepared to join Governor Newsom’s office in late 2022, prosecutors say she arranged for another unnamed public official to take over her role in the scheme. This transition allegedly allowed the fraudulent activity to continue after she took her new position in the governor’s administration.

The indictment also alleges that Williamson and a business partner created false, backdated contracts after receiving a civil subpoena in January 2024. This subpoena was part of a federal investigation into Paycheck Protection Program (PPP) loans obtained by Williamson’s business. These fake contracts were allegedly made to make her earlier financial dealings appear legitimate.

IRS and DOJ Officials Call It a Serious Crime

The DOJ worked alongside the Internal Revenue Service (IRS) and other federal agencies during the investigation. Officials emphasized that misusing business funds or disguising personal luxuries as business expenses is a serious criminal offense.

According to the IRS Criminal Investigation Division, Williamson allegedly filed fraudulent tax returns and tried to pass off personal purchases as company expenses. Linda Nguyen, Special Agent in Charge of the IRS Criminal Investigation Oakland Field Office, said that manipulating tax filings and misusing federal relief programs carry “severe consequences.”

Prosecutors said that Williamson’s company had received pandemic relief funds through the PPP program, which was designed to help small businesses retain employees. However, investigators allege that the money was used for personal gain. When federal agents began reviewing her financial activity, Williamson allegedly tried to obstruct justice by creating false paperwork and lying to investigators.

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Governor’s Office and Public Response

After the charges became public, a spokesperson for Governor Gavin Newsom confirmed that Dana Williamson is no longer part of the administration, saying the governor expects all public servants to maintain the highest standards of integrity.

The office also emphasized presuming innocence until proven guilty, noting that everyone charged deserves a fair trial.

Prosecutors allege Williamson used her consulting firm to bill Xavier Becerra’s campaign, routing money to Sean McCluskie’s wife under a fake “no-show job.” The DOJ said the investigation began during the Biden administration and that Newsom is not mentioned in the indictment.

If convicted on all 23 counts, Williamson faces prison time and major financial penalties. U.S. Attorney Eric Grant called it “a crucial step in an ongoing political corruption investigation.”

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