An indictment unveiled this week charging Gov. Gavin Newsom’s former chief of employees with political corruption threw California’s high political circles into chaos — and stirred hypothesis within the state capital about what triggered the federal investigation.
Authorities haven’t revealed any targets past Dana Williamson and two different influential political operatives related to the state’s strongest Democrats, all of whom are accused of fraud and siphoning marketing campaign funds for private use.
However particulars contained within the indictment and different public data point out that the FBI and U.S. Division of Justice had a eager curiosity in Williamson and different operatives’ involvement within the dealing with of a authorized case involving “Company 1.” The info revealed about “Company 1” match particulars of a controversial intercourse discrimination investigation that the state of California led into one of many world’s largest online game firms, Santa-Monica primarily based Activision Blizzard Inc.
Williamson — an influential deal-maker and one of many state’s premier Democratic political consultants earlier than and after she ran Newsom’s workplace — was arrested on corruption fees Wednesday. Two longtime associates, lobbyist Greg Campbell, a former high-level staffer within the California Meeting, and Sean McCluskie, a longtime aide to former state Atty. Gen. and U.S. Well being and Human Providers Secretary Xavier Becerra, have agreed to plead responsible to associated fees.
After Williamson pleaded not responsible in a tearful court docket look Wednesday, her legal professional, McGregor Scott, stated that federal authorities had charged his shopper solely after first approaching her to hunt assist with a probe they have been conducting into Newsom, the character of which stays unclear. Williamson declined to cooperate.
The governor has not been accused of any wrongdoing. Nonetheless, Republicans already are utilizing the indictments to assault Newsom, who has brazenly stated he’s contemplating a run for president in 2028.
Williamson’s legal professional didn’t provide any specifics on what federal officers might have been investigating.
However quite a few threads within the indictment echo particulars within the Activision saga.
Williamson and Campbell each labored as advisors to Activision Blizzard, in accordance with monetary disclosures on file with the state. Williamson reported receiving revenue from the corporate previous to her appointment in Newsom’s workplace, state data present. Based on data first filed earlier this 12 months, Campbell disclosed that his lobbying agency began being paid by Activision across the time Williamson joined the governor’s workplace. Activision reported paying $240,000 to his agency in 2023 and 2024. The quantity Williamson was paid from Activision was not disclosed.
Activision officers didn’t reply to emails requesting remark. Legal professionals for Williamson, Campbell and McCluskie additionally didn’t reply or declined to remark.
The state’s Division of Truthful Employment and Housing in 2021 sued Activision Blizzard, which distributes video video games equivalent to “Name of Obligation” and “Sweet Crush,” alleging that firm officers discriminated towards ladies, paid them lower than males and ignored reviews of egregious sexual harassment.
The criticism alleges: The corporate “fostered a pervasive ‘frat boy’ office tradition that continues to thrive. Within the workplace, ladies are subjected to ‘dice crawls’ by which male workers drink copious quantities of alcohol as they ‘crawl’ their approach by way of numerous cubicles within the workplace and infrequently have interaction in inappropriate conduct towards feminine workers. Male workers proudly come into work hungover, play video video games for lengthy durations of time throughout work whereas delegating their obligations to feminine workers, have interaction in banter about their sexual encounters, speak brazenly about feminine our bodies, and joke about rape.”
Activision officers denied the allegations.
The allegations additionally have been investigated by the federal Equal Employment Alternative Fee. Activision Blizzard agreed to a consent decree, accredited in March 2022, with the company that required the corporate to arrange an $18-million fund for workers who skilled sexual harassment or discrimination, being pregnant discrimination or retaliation.
Simply weeks later, the case drew nationwide consideration once more when the lawyer overseeing the case for the state’s Division of Truthful Employment and Housing, Janet Wipper, was fired by the Newsom administration, and her chief deputy resigned and alleged that she was doing so to protest alleged interference of Newsom’s workplace within the investigation.
“The Workplace of the Governor repeatedly demanded advance discover of litigation technique and of subsequent steps within the litigation,” the deputy, Melanie Proctor, wrote to her colleagues. “As we continued to win in state court docket, this interference elevated, mimicking the pursuits of Activision’s counsel.”
A member of Activision’s board of administrators contributed $40,200 to Newsom’s 2018 gubernatorial marketing campaign, and a further $100,000 to a committee opposing the 2021 recall marketing campaign towards Newsom — an effort that failed.
Newsom’s workplace denied it was meddling. “Claims of interference by our workplace are categorically false,” Erin Mellon, Newsom’s then-communications director, stated on the time.
As case continued to grind by way of Los Angeles Superior Courtroom, the corporate stepped up its lobbying presence in Sacramento, in accordance with disclosures filed with the state. Paperwork present Activision started paying Campbell beginning in late 2022 to foyer on its behalf.
Round this time, Newsom introduced that he was hiring Williamson to be his chief of employees.
In December 2023 the state introduced it had reached a settlement settlement with Activision for $54 million, with the majority of the funds going to compensate ladies who had been underpaid. The corporate didn’t admit any wrongdoing.
The FBI has made inquires concerning the Activision settlement, although the main target of the inquiry is unclear. When reached just lately, Calabasas legal professional Alan Goldstein, who dealt with a sexual harassment swimsuit towards Activision, stated he acquired a name from an FBI agent seeking to examine California’s settlement — however that he couldn’t recall a “substantive dialog.”
Federal investigators have been additionally how Campbell, Williamson and one other Sacramento political marketing consultant, Alexis Podesta, carried out their affairs. In unveiling their fees this week, the U.S. Lawyer’s workplace stated the investigation started greater than three years in the past. All three consultants have been members of the Sacramento-based Collaborative, a cooperative of high Democratic political operatives.
Podesta from 2017 to 2020 served as secretary of the California Enterprise, Client Providers and Housing Company, which included the state’s Division of Truthful Employment and Housing — the company that launched the investigation of Activision in 2018.
Williamson acquired a federal subpoena for details about her dealing with of a authorities mortgage her enterprise had acquired through the COVID-19 pandemic emergency, in accordance with particulars within the indictment. The indictment accused Williamson of spending huge sums on luxurious objects — together with a Gucci bag, Chanel earrings and a $150,000 Mexican birthday trip and celebration, plus yacht rental and personal jet journey — after which claimed them as enterprise bills on her taxes.
She and Campbell had additionally allegedly conspired with McCluskie to siphon cash from Becerra’s dormant marketing campaign account to pay McCuskie’s spouse for a faux, “no-show” job working for Williamson. When Williamson went to work for Newsom, the indictment alleges, Podesta took over dealing with the go by way of funds.
By June 2024, somebody within the circle was cooperating with federal investigators and carrying a wire, recording Williamson’s non-public conversations, in accordance with transcripts included within the indictment.
On Nov.14, 2024, in accordance with the indictment, FBI brokers interviewed Williamson, questioning her concerning the Becerra marketing campaign funds and concerning the pandemic funds.
Investigators additionally requested her about her actions “whereas serving in public workplace to affect the litigation involving the State of California and a former shopper — Company 1,” in accordance with the indictment. The indictment doesn’t establish Company 1, however particulars match the Activision litigation. The indictment notes that Company 1 was Williamson’s former shopper and that it was concerned in settlement discussions over a lawsuit with the state in 2023. It additionally references a state lawyer who had been fired in reference to the litigation.
Williamson, in accordance with the indictment, instructed the FBI she didn’t go any inside info to Campbell or different associates exterior the federal government. However primarily based on their recorded conversations, the indictment stated, investigators believed that was not true.
They alleged that in January 2023, shortly after Williamson began as Newsom’s chief of employees, she revealed to Podesta that she had “instructed a excessive degree authorities legal professional to … get [the case] settled.”
The indictment notes that Company 1 was not solely Williamson’s former shopper, but additionally now Podesta’s present shopper.
In June 2024, Williamson complained to Podesta that somebody had submitted a California Public Information Act request in search of details about conferences and communications between Newsom officers and the corporate, in accordance with the indictment.
Proctor, the state legal professional who resigned in 2022 and had alleged that the Newsom administration was meddling within the Activision case, posted on her Bluesky social media account in July that she had submitted a public data request on Could 29, 2024. She additionally posted the response from Newsom’s workplace, displaying a gathering in January 2024 within the governor’s workplace amongst Williamson, Podesta and Robert Kotick, the previous chief government of Activision.
Of their June dialog, in accordance with the indictment, Williamson instructed Podesta, “I simply needed to warn you to the PRAS that we’re beginning to get,” the indictment acknowledged. PRAs consult with public data requests.
“Yeah. Ugh. F— her. They actually don’t know who they’re messing with,” Podesta responded.
“They actually don’t,” Williamson stated.
Podesta, who’s recognized within the indictment as “Co-Conspirator 2,” was not charged. On Thursday she despatched a message to quite a few associates providing her tackle the state of affairs.
“Whereas I can not focus on the main points of the continuing investigation, I need to state plainly that I’ve all the time carried out myself — and my enterprise — with integrity.” She additionally stated that she continued to “cooperate absolutely with federal authorities.”
On Friday afternoon, McCluskie and Campbell appeared in federal court docket in Sacramento to be arraigned on conspiracy fees in back-to-back proceedings.
Each males had beforehand reached plea agreements with prosecutors and might be again in court docket to enter these pleas, McCluskie in late November and Campbell in early December.
Prosecutors didn’t search detention for both man, however they have been ordered to give up their passports and keep away from associating with different alleged co-conspirators.
Briefly remarks to reporters, Campbell’s legal professional, Todd Pickles, stated that his shopper “takes full accountability for his actions” and would “in applicable time additional focus on the costs.” However, Pickles famous, these fees “don’t embrace Mr. Campbell partaking in advocacy or lobbying on behalf of any shopper.”
Instances employees writers Katie King and Melody Gutierrez contributed to this report.
