Defendants' plea deal in Sacramento wire fraud case mentions possible testimony

Sean McCluskie, a former chief of staff to Xavier Becerra, and Sacramento lobbyist Greg Campbell -- indicted for wire fraud in the misuse of $225,000 in campaign funds -- are cooperating with federal authorities, a source close to the case told the Daily Journal. Both McCluskie's and Campbell's plea agreements mention the possibility of them giving evidence to law enforcement, a grand jury or a tribunal.

Campbell and McCluskie pleaded guilty to operating a scheme, along with Gov. Gavin Newsom's former chief of staff, Dana Williamson, that transferred money from dormant campaign accounts to a personal account controlled by McCluskie.

Williamson has not admitted any crime and is presumed innocent. Newsom's office, asked for a comment on the situation, said in an email, "The Governor is not involved in the case against Ms. Williamson, and is not mentioned in the Department of Justice's legal filing."

Campbell pleaded guilty Thursday, while McCluskie entered his plea Nov. 20. In their respective plea agreements, Campbell and McCluskie agreed that any future testimony they give related to the case can be used against them should they back out of the plea deal. Copies of the agreements were obtained by the Daily Journal.

The agreements also require $225,000 in restitution for the scheme. Campbell's plea deal says restitution payments will be split among the co-conspirators, although McCluskie's doesn't mention that possibility.

Prosecutors agreed to recommend that both receive sentences on the lower end of what's allowed and reduced offense levels. They also agreed not to bring further charges related to the scheme against the two. Both face a maximum sentence of five years.

In the agreement, the two admit to operating the scheme between February 2022 and September 2024. At the time, McCluskie was the chief of staff for Becerra, who was shortly afterward appointed as the Secretary of Health and Human Services after serving as California's attorney general. According to the plea agreements, McCluskie took a pay cut for the role and incurred additional expenses because he didn't want to move to the East Coast full-time, which meant he had to travel across the country frequently.

Prosecutors say he and a co-conspirator, named in other court documents as Williamson, worked to funnel money from a dormant campaign account to McCluskie's spouse in the form of contracts for no-show work. The money would go to Williamson, supposedly as payment for managing the account, the indictments allege. She would then pay Campbell, who would pass the money to McCluskie's spouse, according to the documents. Once Williamson agreed to become chief of staff for an elected official -- Newsom isn't mentioned by name, but Williamson joined his staff months later -- an unnamed co-conspirator took over her role, the plea agreements say.

Becerra, who's running to replace Newsom when his term ends, isn't named either, but the documents say the campaign accounts belonged to a public official who employed McCluskie as chief of staff.

In Campbell's plea agreement, he also admitted to creating false, backdated contracts between his company and Williamson, saying it was to cover for her during an investigation into a PPP loan she had taken out. This allegation isn't mentioned in McCluskie's plea agreement.

Sentencing will take place Nov. 26, according to a statement from the U.S. Attorney's Office.

Williamson was indicted on 23 counts, including wire fraud, bank fraud, making false statements and subscribing to false tax returns. If convicted, Williamson could face sentences of up to 30 years for bank fraud, 20 years for wire fraud, five years for making false statements and conspiracy to obstruct, and three years for a false tax return. She'll appear before Chief U.S. District Judge Troy L. Nunley in Sacramento on Dec. 11 for a status conference.