At the center of the case is an alleged scheme to improperly access and repurpose approximately $225,000 from a dormant political campaign account.
According to prosecutors, Williamson and an associate conspired to move the funds through multiple business entities they controlled, disguising the transfers as payment for a job that, in reality, required no work.
The indictment alleges that no actual services were performed in exchange for the payments, a tactic prosecutors characterize as a “no-show job” scheme.
By routing the funds through business accounts rather than transferring them directly, investigators allege Williamson sought to avoid scrutiny from regulators and financial institutions, as well as from campaign finance authorities.
A Powerful Role Inside California Government
Williamson served as Governor Newsom’s chief of staff from 2022 until the end of 2024, a role that gave her sweeping authority over policy coordination, staffing, scheduling, and strategic decision-making inside the governor’s office.
As chief of staff, she was widely regarded as one of the most powerful figures in California politics who did not hold elected office.
According to Politico, Williamson was a key gatekeeper for the governor, overseeing the flow of information, shaping policy priorities, and acting as a central figure in negotiations with lawmakers, interest groups, and state agencies.
Before joining the Newsom administration, Williamson held senior positions under former Governor Jerry Brown, including roles as a top advisor and cabinet secretary.
Her long résumé in Democratic politics made her a well-known figure within California’s political establishment.
Broad Range of Federal Charges
The charges include:
Conspiracy to commit bank fraud and wire fraud
Bank fraud
Wire fraud
Conspiracy to defraud the United States
Obstruction of justice
Subscribing to false tax returns
According to the Sacramento Bee, which first reported details of the indictment, there are 23 total counts. Of those, 18 bank and wire fraud charges each carry a statutory maximum penalty of 20 years in federal prison and fines of up to $250,000 per count.
The tax-related charge carries a potential maximum fine of $100,000, in addition to possible imprisonment.
Williamson was indicted alongside several co-defendants, including Greg Campbell and Sean McCluskie, as well as two additional individuals named in the charging documents.
Allegations Involving Pandemic Relief Funds
Federal prosecutors also allege that Williamson improperly obtained Paycheck Protection Program (PPP) loans through one of her business entities during the COVID-19 pandemic.
The PPP was designed to help small businesses maintain payroll during pandemic-related shutdowns, and misuse of the program has been the subject of extensive federal enforcement efforts nationwide.
According to the indictment, Williamson came under civil investigation in early 2024 after one of her businesses received a subpoena related to PPP loan activity.
Prosecutors allege that, following receipt of the subpoena, Williamson and a business partner attempted to conceal financial irregularities by creating fake and backdated contracts intended to make the transactions appear legitimate.
Authorities characterize these actions as obstruction of justice, alleging they were designed to mislead investigators and interfere with the federal inquiry.
Alleged Tax Fraud and Personal Spending
In addition to campaign finance and bank fraud allegations, prosecutors accuse Williamson of submitting false federal tax returns that claimed more than $1 million in fraudulent business deductions.
According to investigators, Williamson allegedly masked personal expenses as legitimate business costs. The indictment states that the disguised expenditures included:
Private jet travel
Luxury hotel accommodations
High-end designer handbags
Other personal lifestyle expenses
IRS Criminal Investigation agents allege these deductions were knowingly false and substantially reduced Williamson’s reported tax liability over multiple years.
Statements from Federal Authorities
FBI Sacramento Special Agent in Charge Sid Patel said the case reflects the culmination of an intensive, multiyear investigation. Continue reading…
