SACRAMENTO — A sweeping federal corruption probe has erupted into a political crisis for California’s ruling Democratic establishment, implicating insiders tied to Gov. Gavin Newsom and U.S. Health and Human Services Secretary Xavier Becerra — and landing just as voters begin to weigh their choices in the chaotic 2026 governor’s race.
The scandal intensified on December 4, when influential Sacramento lobbyist Greg Campbell pleaded guilty to two felony conspiracies and admitted on an FBI recording that a scheme involving Becerra’s dormant campaign money amounted to “money-laundering”, calling it “icky” and “wrong.”
Campbell’s plea comes on the heels of a November guilty plea by Sean McCluskie, Becerra’s longtime chief of staff. Both men are now cooperating with federal prosecutors and will be sentenced together on February 26, 2026 — a date that now looms just months before California’s primary election.
At the center is Dana Williamson, Newsom’s former chief of staff, charged in a 23-count indictment alleging fraud, tax crimes, obstruction, and a cover-up attempt involving a COVID-era PPP loan.
The case — three years in the making — pulls back the curtain on a Capitol culture where consultants, insiders, and political operatives allegedly used dormant accounts, shell firms, and no-show jobs to enrich themselves while ordinary Californians struggled under some of the highest living costs in the nation.
How the “No-Show Job” Pipeline Worked
Federal prosecutors describe a classic insider scheme wrapped in modern political consulting language:
- The stash:
A dormant Becerra campaign account from earlier statewide runs, with unused donor money sitting untouched but accessible. - The players:
- Williamson, a veteran Democratic strategist
- Campbell, one of Sacramento’s most connected lobbyists
- McCluskie, Becerra’s trusted aide for nearly 20 years
- The motive:
McCluskie, after moving to Washington D.C. with Becerra, faced a pay cut and an expensive bicoastal lifestyle. - The scheme:
From 2022 to 2024, prosecutors say Williamson and Campbell helped siphon about $225,000 from the dormant account by:- Billing the campaign for vague “maintenance” or consulting work
- Routing money through consulting firms tied to Williamson and Campbell
- Paying $10,000 a month to McCluskie’s wife for a consulting job prosecutors say was entirely fictional
In one FBI-recorded conversation, Campbell bluntly acknowledged the setup was essentially money-laundering, admitting “it’s wrong” — but continued participating.
The Justice Department has produced 27,000+ pages of evidence, hundreds of gigabytes of data, and hours of recorded conversations documenting the conspiracy.
PPP Loan Fraud and $1M+ in Personal Luxuries
The federal indictment extends beyond the no-show job scheme.
Prosecutors allege that Williamson:
- Received a PPP loan of roughly $103,000 for her firm, Grace Public Affairs, despite PPP rules explicitly excluding lobbying shops
- Instructed Campbell to create and backdate three fake contracts to make it appear her firm performed non-lobbying subcontracting work
- Deducted over $1 million in personal luxury spending as business expenses, including:
- A Chanel designer handbag and jewelry
- A nearly $170,000 Mexico birthday trip
- Chartered jet flights
- Gifts and home upgrades
Campbell has now admitted he ordered the backdated contracts drafted and knowingly signed them, forming a core piece of his guilty plea.
Williamson has pleaded not guilty and is out on a $500,000 unsecured bond backed by her home.
Campbell’s Fall: The Lobbying Firm Collapses
Since his plea, Campbell has begun shutting down his Sacramento lobbying firm, and multiple municipal and corporate clients have already terminated contracts or distanced themselves. For a man considered one of the Capitol’s most influential dealmakers, the collapse is a stark sign of how deeply this case has rattled California’s political ecosystem.
Key Players in the Sacramento Corruption Case
| Name | Role | Status | Political Ties |
|---|---|---|---|
| Dana Williamson | Former Newsom chief of staff; consultant | Indicted on 23 felonies; not guilty plea | Newsom inner circle; longtime Dem fixer |
| Greg Campbell | Sacramento lobbyist | Pleaded guilty; cooperating; shutting down firm | Capitol power broker; major Dem relationships |
| Sean McCluskie | Becerra’s longtime chief of staff | Pleaded guilty; cooperating | Central figure in Becerra’s political orbit |
| Xavier Becerra | U.S. HHS Secretary; 2026 gubernatorial candidate | Not charged; campaign account treated as victim | Top-tier Democrat; now facing oversight questions |
| Gavin Newsom | Governor of California | Not charged; no allegation of involvement | National Democratic figure; termed out 2026 |
Both Newsom and Becerra deny any wrongdoing. Becerra’s office says he has “fully cooperated” with investigators. Still, the optics are brutal: two of his closest aides have now admitted to federal felonies connected to his campaign funds.
2026 Governor’s Race: A Fragmented Field Meets a Corruption Earthquake
The timing of the scandal could not be more disruptive.
According to the Emerson College / Inside California Politics poll (Dec. 1–2, released Dec. 4):
- Chad Bianco (R) – 13%
- Steve Hilton (R) – 12%
- Eric Swalwell (D) – 12%
- Katie Porter (D) – 11%
- Undecided – 31%
No Democrat leads the field. Republicans occupy the top two spots — in California. And the scandal is dropping into a race where indecision is sky-high and frustration with Sacramento is boiling over.
Political analysts now warn of a scenario once considered unthinkable:
A top-two Republican lockout in the general election — if Democratic votes split and the corruption fallout accelerates.
For Becerra, the scandal cuts directly against his messaging:
- He is positioned as a competent, stable administrator.
- But over $225,000 disappeared from a campaign account he was responsible for.
- His closest advisers of 20 years are now felons.
- And his rivals are already painting him as “unable to manage his own house, let alone California.”
Online Narrative: “California’s Watergate?”
On X, the story has gone viral, with clips of Campbell leaving court, screenshots of luxury deductions, and memes about “dormant accounts becoming donor-funded piggy banks.”
Conservative activists have also revived the 2017 Awan IT scandal, emphasizing that Becerra — then chair of the House Democratic Caucus — oversaw one of the servers improperly accessed by IT aides.
Mainstream outlets note that the DOJ cleared the Awans of espionage in 2018, and no charges were brought against Becerra. Nonetheless, the scandal is now being woven into a broader storyline portraying lax oversight in his political orbit.
It matters because the online narrative is shaping voter perception faster than official statements — and in a crowded jungle primary, perception is everything.
What Concerned Citizens Should Watch Next
Three dates and developments could redefine both the criminal case and the 2026 gubernatorial race:
1. February 26, 2026 — Sentencing for Campbell & McCluskie
Their sentencing memos may reveal new details about who knew what — and whether investigators uncovered evidence pointing beyond the three charged operatives.
2. The Future of the Williamson Case
If she maintains her not guilty plea and proceeds to trial, her defense strategy could thrust even more political players into the spotlight.
If she flips, the political fallout could widen rapidly.
3. The June 2026 Primary
Voters will decide whether the scandal represents isolated misconduct or a symptom of deeper dysfunction in Sacramento’s one-party system.
A senior strategist put it this way:
“This isn’t about three operatives. This is about whether Californians believe Sacramento is a machine that protects insiders while the rest of the state burns.”
The Big Question
As California barrels toward 2026, the fundamental issue is no longer just who stole what or who signed which contract.
The real question for voters is:
If this is what insiders were doing with dormant accounts, PPP loans, and donor money, what’s happening in the billions flowing through homelessness programs, emergency contracts, and other parts of state government with far less oversight?
The answer — and whether more shoes drop before June — may reshape California politics for the first time in decades.
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