Politics
Indictment of ex-Newsom aide hints at feds’ probe into state’s earlier investigation of video game giant
An indictment unveiled this week charging Gov. Gavin Newsom’s former chief of staff with political corruption threw California’s top political circles into chaos — and stirred speculation in the state capital about what triggered the federal investigation.
Authorities have not revealed any targets beyond Dana Williamson and two other influential political operatives associated with the state’s most powerful Democrats, all of whom are accused of fraud and siphoning campaign funds for personal use.
But details contained in the indictment and other public records indicate that the FBI and U.S. Department of Justice had a keen interest in Williamson and other operatives’ involvement in the handling of a legal case involving “Corporation 1.” The facts revealed about “Corporation 1” match details of a controversial sex discrimination investigation that the state of California led into one of the world’s largest video game companies, Santa-Monica based Activision Blizzard Inc.
Williamson — an influential deal-maker and one of the state’s premier Democratic political consultants before and after she ran Newsom’s office — was arrested on corruption charges Wednesday. Two longtime associates, lobbyist Greg Campbell, a former high-level staffer in the California Assembly, and Sean McCluskie, a longtime aide to former state Atty. Gen. and U.S. Health and Human Services Secretary Xavier Becerra, have agreed to plead guilty to related charges.
After Williamson pleaded not guilty in a tearful court appearance Wednesday, her attorney, McGregor Scott, said that federal authorities had charged his client only after first approaching her to seek help with a probe they were conducting into Newsom, the nature of which remains unclear. Williamson declined to cooperate.
The governor has not been accused of any wrongdoing. Still, Republicans already are using the indictments to attack Newsom, who has openly said he is considering a run for president in 2028.
Williamson’s attorney did not offer any specifics on what federal officials may have been investigating.
But numerous threads in the indictment echo details in the Activision saga.
Williamson and Campbell both worked as advisors to Activision Blizzard, according to financial disclosures on file with the state. Williamson reported receiving income from the company prior to her appointment in Newsom’s office, state records show. According to records first filed earlier this year, Campbell disclosed that his lobbying firm started being paid by Activision around the time Williamson joined the governor’s office. Activision reported paying $240,000 to his firm in 2023 and 2024. The amount Williamson was paid from Activision was not disclosed.
Activision officials did not respond to emails requesting comment. Lawyers for Williamson, Campbell and McCluskie also did not respond or declined to comment.
The state’s Department of Fair Employment and Housing in 2021 sued Activision Blizzard, which distributes video games such as “Call of Duty” and “Candy Crush,” alleging that company officials discriminated against women, paid them less than men and ignored reports of egregious sexual harassment.
The complaint alleges: The company “fostered a pervasive ‘frat boy’ workplace culture that continues to thrive. In the office, women are subjected to ‘cube crawls’ in which male employees drink copious amounts of alcohol as they ‘crawl’ their way through various cubicles in the office and often engage in inappropriate behavior toward female employees. Male employees proudly come into work hungover, play video games for long periods of time during work while delegating their responsibilities to female employees, engage in banter about their sexual encounters, talk openly about female bodies, and joke about rape.”
Activision officials denied the allegations.
The allegations also were investigated by the federal Equal Employment Opportunity Commission. Activision Blizzard agreed to a consent decree, approved in March 2022, with the agency that required the company to set up an $18-million fund for employees who experienced sexual harassment or discrimination, pregnancy discrimination or retaliation.
Just weeks later, the case drew national attention again when the lawyer overseeing the case for the state’s Department of Fair Employment and Housing, Janette 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 office in the investigation.
“The Office of the Governor repeatedly demanded advance notice of litigation strategy and of next steps in the litigation,” the deputy, Melanie Proctor, wrote to her colleagues. “As we continued to win in state court, this interference increased, mimicking the interests of Activision’s counsel.”
A member of Activision’s board of directors contributed $40,200 to Newsom’s 2018 gubernatorial campaign, and an additional $100,000 to a committee opposing the 2021 recall campaign against Newsom — an effort that failed.
Newsom’s office denied it was meddling. “Claims of interference by our office are categorically false,” Erin Mellon, Newsom’s then-communications director, said at the time.
As case continued to grind through Los Angeles Superior Court, the company stepped up its lobbying presence in Sacramento, according to disclosures filed with the state. Documents show Activision began paying Campbell starting in late 2022 to lobby on its behalf.
Around this time, Newsom announced that he was hiring Williamson to be his chief of staff.
In December 2023 the state announced it had reached a settlement agreement with Activision for $54 million, with the bulk of the funds going to compensate women who had been underpaid. The company did not admit any wrongdoing.
The FBI has made inquires about the Activision settlement, though the focus of the inquiry is unclear. When reached recently, Calabasas attorney Alan Goldstein, who handled a sexual harassment suit against Activision, said he received a call from an FBI agent looking to investigate California’s settlement — but that he couldn’t recall a “substantive conversation.”
Federal investigators were also looking at how Campbell, Williamson and another Sacramento political consultant, Alexis Podesta, conducted their affairs. In unveiling their charges this week, the U.S. Attorney’s office said the investigation began more than three years ago. All three consultants were members of the Sacramento-based Collaborative, a cooperative of top Democratic political operatives.
Podesta from 2017 to 2020 served as secretary of the California Business, Consumer Services and Housing Agency, which included the state’s Department of Fair Employment and Housing — the agency that launched the investigation of Activision in 2018.
Williamson received a federal subpoena for information about her handling of a government loan her business had received during the COVID-19 pandemic emergency, according to details in the indictment. The indictment accused Williamson of spending vast sums on luxury items — including a Gucci bag, Chanel earrings and a $150,000 Mexican birthday vacation and party, plus yacht rental and private jet travel — and then claimed them as business expenses on her taxes.
She and Campbell had also allegedly conspired with McCluskie to siphon money from Becerra’s dormant campaign account to pay McCuskie’s wife for a fake, “no-show” job working for Williamson. When Williamson went to work for Newsom, the indictment alleges, Podesta took over handling the pass through payments.
By June 2024, someone in the circle was cooperating with federal investigators and wearing a wire, recording Williamson’s private conversations, according to transcripts included in the indictment.
On Nov.14, 2024, according to the indictment, FBI agents interviewed Williamson, questioning her about the Becerra campaign funds and about the pandemic funds.
Investigators also asked her about her actions “while serving in public office to influence the litigation involving the State of California and a former client — Corporation 1,” according to the indictment. The indictment doesn’t identify Corporation 1, but details match the Activision litigation. The indictment notes that Corporation 1 was Williamson’s former client and that it was involved in settlement discussions over a lawsuit with the state in 2023. It also references a state lawyer who had been fired in connection with the litigation.
Williamson, according to the indictment, told the FBI she did not pass any inside information to Campbell or other associates outside the government. But based on their recorded conversations, the indictment said, investigators believed that was not true.
They alleged that in January 2023, shortly after Williamson started as Newsom’s chief of staff, she revealed to Podesta that she had “told a high level government attorney to … get [the case] settled.”
The indictment notes that Corporation 1 was not only Williamson’s former client, but also now Podesta’s current client.
In June 2024, Williamson complained to Podesta that someone had submitted a California Public Records Act request seeking information about meetings and communications between Newsom officials and the company, according to the indictment.
Proctor, the state attorney who resigned in 2022 and had alleged that the Newsom administration was meddling in the Activision case, posted on her Bluesky social media account in July that she had submitted a public records request on May 29, 2024. She also posted the response from Newsom’s office, showing a meeting in January 2024 in the governor’s office among Williamson, Podesta and Robert Kotick, the former chief executive of Activision.
In their June conversation, according to the indictment, Williamson told Podesta, “I just wanted to alert you to the PRAS that we’re starting to get,” the indictment stated. PRAs refer to public records requests.
“Yeah. Ugh. F— her. They really don’t know who they are messing with,” Podesta responded.
“They really don’t,” Williamson said.
Podesta, who is identified in the indictment as “Co-Conspirator 2,” was not charged. On Thursday she sent a message to numerous associates offering her take on the situation.
“While I cannot discuss the details of the ongoing investigation, I want to state plainly that I have always conducted myself — and my business — with integrity.” She also said that she continued to “cooperate fully with federal authorities.”
On Friday afternoon, McCluskie and Campbell appeared in federal court in Sacramento to be arraigned on conspiracy charges in back-to-back proceedings.
Both men had previously reached plea agreements with prosecutors and will be back in court to enter those pleas, McCluskie in late November and Campbell in early December.
Prosecutors did not seek detention for either man, but they were ordered to surrender their passports and avoid associating with other alleged co-conspirators.
In brief remarks to reporters, Campbell’s attorney, Todd Pickles, said that his client “takes full accountability for his actions” and would “in appropriate time further discuss the charges.” But, Pickles noted, those charges “do not include Mr. Campbell engaging in advocacy or lobbying on behalf of any client.”
Times staff writers Katie King and Melody Gutierrez contributed to this report.
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Sen. Ron Wyden, D-Ore., suddenly found himself on the defensive at a budget hearing on Wednesday when, amid levying accusations of the Trump administration’s “corrupt” dealings, Treasury Secretary Scott Bessent fired back by bringing Wyden’s son’s investments into the exchange.
“We would like to hear what Adam Wyden and Jeffrey Epstein talked about,” Bessent said, referring to unearthed emails drawing a connection between the senator’s son and the disgraced financier.
“Did your son and Jeffrey Epstein talk about pole dancing as he begged him for money?”
The moment continues the political fallout for the many names associated with Epstein that — despite not amounting to proof of wrongdoing — continue to prompt embarrassment and scandal at even the smallest mention.
TOP FIERY MOMENTS AS DEMOCRATS CLASH WITH TREASURY SECRETARY BESSENT IN CHAOTIC HILL HEARINGS
Treasury Secretary Scott Bessent, left, pictured along Sen. Ron Wyden, D-Ore, right. (Aaron Schwartz/Bloomberg via Getty Images; Chip Somodevilla/Getty Images)
Epstein, a former financier, died while in prison on charges of sex trafficking minors in 2019, leaving behind questions of whether he facilitated illegal sexual encounters for his vast network of rich and powerful figures.
Amid public demands for transparency on the matter, the Department of Justice released troves of documents on Epstein late last year, unveiling a slew of new names with all manner of ties to the infamous figure ranging from purely innocuous to alarming.
Among them, emails surfaced indicating that Adam Wyden, Ron Wyden’s son, went to Epstein, hoping to gain his support for a business venture.
UNEARTHED EMAILS REVEAL DEM SENATOR’S SON WANTED EPSTEIN TO JOIN HIS FUND: ‘ENJOYED OUR CONVERSATION’
Sen. Ron Wyden leaves a Senate Democratic meeting at the U.S. Capitol Building in Washington, D.C., on Oct. 3, 2025, as the federal government shuts down after Congress and the White House failed to reach a funding deal. (Kevin Dietsch/Getty Images)
“Jeffrey, I wanted to thank you for taking the time to meet with me. I thoroughly enjoyed our conversation and hope my passion and dedication for my business came through in the meeting. I live and breathe this business and take my returns, integrity and reputation quite seriously,” the younger Wyden said in an email in April 2016.
“I intensely appreciate like-minded individuals and would very much look forward to having you join us at the fund.”
The emails came after Epstein pleaded guilty to soliciting a minor for prostitution in Florida in 2008.
It’s unclear what the business venture discussed by Adam Wyden and Epstein may have been or what, specifically, had been discussed in their conversations.
Even so, Bessent reminded viewers that the younger Wyden had a history of investing in off-color markets at Wednesday’s hearing.
DEMOCRATS ARE HAMMERING REPUBLICANS ON EPSTEIN, BUT ONE SENATOR BRUSHED OFF THE ISSUE YEARS AGO
Treasury Secretary Scott Bessent addresses a press conference in Rosenbad after trade talks between the U.S. and China concluded in Stockholm, Sweden, on July 29, 2025. (Magnus Lejhall/TT News Agency/AFP via Getty Images)
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“Your son’s largest investment position was Rick’s Cabaret,” Bessent said, referring to a series of strip clubs.
Wyden, who has widely panned the Trump administration and its many officials for their own connections to Epstein, didn’t respond to Bessent’s jabs.
As election officials continued tallying ballots Wednesday, Republican Steve Hilton and Democrat Xavier Becerra continued to lead in the unsettled race to replace termed-out Gov. Gavin Newsom, with billionaire Democrat Tom Steyer hoping for a surge in late-arriving votes to push him into one of the top-two spots to advance to the November general election.
Hilton, a British immigrant and former Fox News commentator, told reporters outside the state Capitol in Sacramento Wednesday morning that he was “very encouraged” by the latest results, though he stopped short of declaring victory.
“It does look as if change is coming to California, and that is good news for everyone, every small business, every working family, everyone who wants to see our state set back on track,” he said.
Becerra and Steyer did not hold public events as of Wednesday afternoon.
Election data analyst Paul Mitchell said it would be nearly mathematically impossible for Steyer to close the gap.
“As we start to get more data, the runway is going to get shorter and shorter,” he said.
He said Steyer, to finish in the top two in the primary, would have to get about 30% of the remaining uncounted votes while Becerra would need to be limited to 15%. The self-funded billionaire has “a very high hill to overcome, and the challenge gets steeper and steeper as we get more data from the counties,” Mitchell said.
Once mired near the bottom of a crowded pack of Democrats in opinion polls, Becerra, a former Biden administration cabinet member, rocketed ahead of his rival candidates after former Rep. Eric Swalwell dropped out of the race in April amid allegations of sexual assault and misconduct. The scandal triggered an upswing of voter interest in California’s once sluggish governor’s race and in Becerra, who seized the moment.
“Here in Hollywood’s hometown, we love a good underdog story,” Becerra told cheering supporters at his election night party at La Plaza de Cultura y Artes in downtown Los Angeles.
Becerra spoke about his Mexican immigrant parents and becoming the first in his family to attend college. Though a longtime California politician, Becerra said that his campaign for governor was outspent and that he faced calls to drop out of the race.
“The underdog stayed in the fight,” he said. “Like my parents, I never gave up. … Never stopped believing in the beacon-light goodness of California and thankfully, neither did you.”
Steyer, who spent more than $216 million of his wealth on the race, has not conceded defeat.
His campaign manager, Heather Hargreaves, wrote in a letter to supporters Wednesday that “we’re going to give democracy time to work. County election officials are still counting ballots and don’t expect to know how many people voted in total until” Thursday, when officials are required to report the estimated number ballots left to process.
The billionaire former hedge fund owner campaigned against the corporate and special interests that have a powerful presence in Sacramento and often spend heavily in elections, including this year against Steyer.
Billionaires “do everything they can to hoard their wealth and avoid paying taxes, and we see corporations continue to rig the system for themselves — raising your prices to juice their profits. Screw that,” Steyer said at his election watch party at the Regency Ballroom in San Francisco.
Other candidates in the race included Republican Riverside County Sheriff Chad Bianco and Democrats including former Rep. Katie Porter, San José Mayor Matt Mahan, former Los Angeles Mayor Antonio Villaraigosa and state Supt. of Public Instruction Tony Thurmond.
Villaraigosa, Mahan and Porter conceded the race Tuesday night.
California’s 2026 race for governor started slow but ended with a flourish, including the demise of a scandal-ridden Democratic favorite, the anointing of a Republican by Trump and Becerra’s unexpected rise from the depths of the candidate field.
Unlike gubernatorial elections in the last quarter of a century, this year’s race lacked a clear crowd-pleasing front-runner able to win over voters, such as movie star Arnold Schwarzenegger or Jerry Brown, a sage of the California electorate and scion of a storied political family. But it unfolded at a time when the state’s residents are overwhelmed by high housing costs, steep gas prices and overall unaffordability that threatens the “California dream” that once drew millions of people to the state.
“Normal people are not living and breathing politics on a daily basis,” said Tim Rosales, a strategist who ran Republican John Cox’s unsuccessful 2018 gubernatorial campaign. In today’s information-saturated environment, Rosales said, the race and its roster of “extremely milquetoast candidates” didn’t break through until the Swalwell scandal grabbed voters’ attention.
The 2026 gubernatorial primary has been one of the most unpredictable and expensive in decades and a race that was shaped early on by a number of heavyweight Democrats staying on the sidelines.
Though supporters urged them to run, former Vice President Kamala Harris, Sen. Alex Padilla and Atty. Gen. Rob Bonta passed on the race. It was in a state of limbo for months last year as Harris, one of the state’s most high-profile politicians, weighed whether to jump in.
“I don’t ever recall a playing field that looks like this one. Usually there’s a clear front-runner,” said veteran Democratic strategist Darry Sragow. “It’s easy to say that it reflects a lack of talent [but] that’s absolutely not true. Almost any of the candidates running could make a good governor.”
Still, candidates struggled for months to break through to voters.
In February, polls showed the crowded field of Democrats splitting liberal voters and opening a statistical possibility that the party would be boxed out of November under California’s open, top-two primary, which places all candidates on the same ballot. Only the first- and second-place finishers in the primary advance to the general election, regardless of their party affiliation.
Just when Swalwell appeared on the cusp of becoming the Democratic front-runner the San Francisco Chronicle and CNN published allegations that he sexually assaulted a former staffer and acted inappropriately with other women. Swalwell suspended his campaign.
It was Becerra who benefited the most. In less than two months, he vaulted from polling in the low single digits to the top of the field of candidates, according to surveys conducted by UC Berkeley’s Institute of Governmental Studies that were co-sponsored by the Los Angeles Times.
“Becerra caught lightning in a bottle,” Rosales said. “It could have easily gone to any of the other candidates,” but many had baggage. Videos of Porter losing her temper hurt her image, the source of Steyer’s wealth and his unbridled campaign spending weighed on voters’ minds, and Villaraigosa and Mahan were “more centrist than what most Democrats wanted, and so Xavier Becerra was really the safe choice,” Rosales said.
Before Democratic voters began to narrow down their choices, Trump endorsed Hilton in early April. It helped the former Fox News host break away from Bianco, his main GOP rival.
In the days before the primary election, the race solidified into a three-way contest involving Becerra, Steyer and Hilton.
Steyer stepped up his fight in the remaining days, seeking to squeeze into one of the top two spots by battering Becerra in ads and at campaign rallies as a politician propped up by corporate special interests.
“We cannot afford to have a governor who’s been bought off by Big Oil. Period,” he said at a Sunday rally in Los Angeles.
Corporations, along with labor unions and interest groups including the California Assn. of Realtors, had spent more than $18.7 million to boost Becerra, according to the election spending tracker California Target Book. Many of the same groups also gave money to a committee intended to attack Steyer.
As the election neared, Becerra sharpened his attacks against Steyer, calling the billionaire a “liar” and accusing him of trying to buy the election.
“We are not going to let a billionaire or Trump’s handpicked candidate take over this state,” he said during a Sunday rally in Long Beach.
If Becerra faces off with Hilton in November he’ll have a distinct advantage. Democratic voters outnumber Republicans nearly 2 to 1 in left-leaning California.
Winning the general election would make the 68-year-old Becerra the first elected Latino governor of California. At roughly 40% of the state’s population, Latinos are California’s largest ethnic group but have not been represented in the governor’s mansion since 1875, when then-Lt. Gov. Romualdo Pacheco was elevated to fill a 10-month vacancy.
Times staff writers Iris Kwok, Susanne Rust, Andrew Khouri and Christopher Goffard contributed to this report.
new video loaded: Steve Hilton Holds Slim Early Lead in California Governor’s Race
transcript
transcript
Steve Hilton Holds Slim Early Lead in California Governor’s Race
Steve Hilton, a Republican and former Fox News host, held a narrow lead in early votes over two Democratic opponents in California’s nonpartisan primary for governor. The top two candidates will advance to the general election in November.
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“Change is coming to California, and it’s long overdue. I want to just say something from my heart to every single person who’s voted for me. We’re not — We’re not there yet, but it’s looking good.” [cheers] “Tonight, the people of the great state of California, in the greatest nation on earth, have spoken. [cheers] Loudly and proudly. [cheers] And while I take nothing for granted, there are lots of ballots left to be counted, it appears that we are on track to advance to November.” [cheers] “It might take some time to figure out where this is going. We’re going to wait until every ballot is counted. We’re going to give democracy a time to work, and we know we finished really strong.” [cheers]
By Axel Boada
June 3, 2026
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