BREAKING: Gavin Newsom’s former chief of staff arrested in FBI corruption probe over use of campaign funds for personal use

Federal prosecutors say Dana Williamson, 53, of Carmichael, was arrested Tuesday morning and faces a 23-count indictment that includes conspiracy to commit bank and wire fraud, filing false tax returns, making false statements, and obstructing justice. The indictment was unsealed following her arrest.

“This is a crucial step in an ongoing political corruption investigation that began more than three years ago,” said US Attorney Eric Grant, adding that the government remains “committed to protecting the people of California from political corruption.”

Between February 2022 and September 2024, Williamson allegedly conspired with others to divert roughly $225,000 from a dormant political campaign account into personal use. Court documents say the money was funneled through various business entities and disguised as legitimate payments for a no-show consulting job.

The FBI’s Sacramento office and IRS Criminal Investigation jointly led the probe. “Today’s charges are the result of three years of relentless investigative work,” said FBI Special Agent in Charge Sid Patel, calling the case an example of how the Bureau “remains vigilant in uncovering fraud and corruption.”

The indictment further accuses Williamson of filing false tax returns, claiming more than $1 million in personal expenses — including private jet travel, luxury hotels, handbags, and home furnishings — as business deductions. Investigators say she also wrote off “no-show” salaries for friends and relatives as business expenses.

When questioned by FBI agents about the diverted campaign funds, fake contracts, and alleged public corruption, Williamson allegedly lied to investigators. Prosecutors say she and an associate created backdated contracts in early 2024, after receiving a subpoena related to Paycheck Protection Program (PPP) loans her company received during the pandemic.

“Disguising personal luxuries as business expenses… is a serious criminal offense with severe consequences,” said IRS Criminal Investigation Special Agent in Charge Linda Nguyen. “IRS-CI will pursue charges against those who deliberately exploit their business for personal enrichment.”

Williamson is set to appear in federal court in Sacramento at 2 pm PST for her initial hearing. Two additional individuals connected to the case were also charged separately, according to the Justice Department.

If convicted, Williamson faces up to 20 years in prison and a $250,000 fine per count for bank and wire fraud-related charges, along with additional penalties for obstruction and false tax returns.

Williamson Indictment by robertowcruz