Sacramento scandal a wild card for Xavier Becerra and the governor’s race
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SACRAMENTO — So far, gubernatorial candidate Xavier Becerra has escaped the bright spotlight focused on Gov. Gavin Newsom in the money pilfering scandal involving their former top aides. But that could change.
It seems only a matter of time before one of Becerra’s campaign rivals seizes the federal fraud case for attack fodder. I can hear it already: “If the man who wants to be governor can’t protect his own political funds, he shouldn’t be trusted to safeguard your tax money.”
That might not be fair, but this is big-time politics. And the word “fair” isn’t in the political dictionary.
Neither Becerra nor Newsom is implicated in any wrongdoing.
Newsom has drawn heavy media attention because his former chief of staff, Dana Williamson, is the central figure in the criminal case. Newsom also has made himself into a national political celebrity and the leader in early polling for the 2028 Democratic presidential nomination. That makes him prime news copy.
Becerra is low-profile by comparison, although he has achieved a very successful and respectable career: U.S. Health and Human Services secretary under President Biden, California attorney general and 12-term congressman.
It was Becerra’s dormant state political account that allegedly got pilfered of $225,000 while he was health secretary.
Federal prosecutors allege that Williamson, former Becerra chief of staff Sean McCluskie and Sacramento lobbyist Greg Campbell illegally diverted money to McCluskie’s wife, funneling the loot through shell companies for bogus consulting services.
McCluskie and Campbell both pleaded guilty to conspiracy to commit fraud and have been cooperating with the federal government.
Williamson, who allegedly fleeced Becerra’s political kitty when she owned a government relations firm before joining Newsom’s staff, pleaded not guilty to bank and tax fraud charges. Besides raiding Becerra’s account, she’s accused of falsifying documents involving a COVID small-business loan and claiming $1 million in personal luxuries as business expenses on her income taxes.
After news of the case broke last week with Williamson’s arrest, Newsom’s office said the governor suspended her last November after she informed him of the federal investigation.
There also was a sophomoric attempt by a Newsom spokesperson to link the federal case to the combative relationship between President Trump and the California governor. It’s true Trump has been targeting his “enemies.” But this three-year FBI probe began under the Biden administration.
Becerra issued a statement saying that the “formal accusations of impropriety by a long-serving trusted advisor are a gut punch.” He also said he had been cooperating with the U.S. Justice Department‘s investigation.
The federal indictment alleges that McCluskie and Williamson misled Becerra about how monthly withdrawals from his political account were to be used.
The account stash of nearly $2 million was raised for a 2022 attorney general reelection campaign that never occurred because by then Becerra was health secretary. But the money could be used in some future state race, such as for governor.
Political operatives I talked with were stunned that $225,000 could be siphoned out of a politician’s campaign account without him noticing.
“Did the account have no one watching it except the consultants who were pilfering from it?” asked veteran Democratic consultant Garry South. “Those of us who have run campaigns are scratching our heads. I can’t imagine how this would happen.”
I asked the Becerra campaign.
A spokesperson replied that the health secretary had authorized payments for “campaign management” after being misled by trusted advisors.
Also, the spokesperson added, Becerra was counseled by a Health and Human Services attorney to distance himself from any “campaign or political activity” prohibited by the federal Hatch Act and ethics rules. So he delegated responsibility for managing the account to advisors.
And he got snookered and ripped off.
Will it tarnish Becerra’s image and hurt his campaign for governor? We don’t know yet. But probably not that much, if any. His only sin, after all, was trusting the wrong people and following an attorney’s advice.
Even big scandals don’t seem to damage politicians in this era — Trump being the unfathomable best example.
It could crimp Becerra’s fundraising if potential donors wonder where their money is actually going and whether anyone credible will be watching it.
The gubernatorial race is still wide open without a real front-runner. No candidate is captivating the voters.
A late October poll by the UC Berkeley Institute of Governmental Studies showed paltry numbers for all candidates. Former Orange County Rep. Katie Porter led Democrats with 11% support among registered voters. Becerra was second with 8%. A whopping 44% of those surveyed were undecided.
Riverside County Sheriff Chad Blanco, a Republican, was first overall with 13%. But no Republican need apply for this job. California hasn’t elected a GOP candidate to a statewide office since 2006.
Becerra has as good a shot at winning as any current candidate. He was the leading Democrat among Latinos at 12%.
But he’ll need a better answer for why he allowed $225,000 in donated political contributions to be grabbed and illegally spent by people he trusted.
What else you should be reading
The must-read: Front-runner or flash in the pan? Sizing up Newsom, 2028
CA vs. Trump: At Brazilian climate summit, Newsom positions California as a stand-in for the U.S.
The L.A. Times Special: Indictment of ex-Newsom aide hints at feds’ probe into state’s earlier investigation of video game giant
Until next week,
George Skelton
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Ideas expressed in the piece
The scandal involving former aides and Becerra’s campaign account presents a vulnerability that his gubernatorial rivals will likely exploit as attack fodder to question his stewardship of public funds[3].
Becerra has managed to avoid the intense media scrutiny that has focused on Governor Newsom, making the scandal a potential tipping point in how voters perceive the candidate[3].
Political operatives have expressed astonishment that $225,000 could be diverted from a campaign account without detection, raising questions about campaign fund management oversight[3].
Becerra was misled by trusted advisors about how his campaign account withdrawals would be used, and he delegated responsibility for managing the account after being counseled by an HHS attorney to distance himself from political activity due to Hatch Act and ethics restrictions[3].
While the scandal could potentially damage fundraising efforts by causing donors to question whether their contributions will be properly protected, its impact on Becerra’s gubernatorial prospects may ultimately be limited[3].
Even significant scandals have shown minimal effect on politicians’ electoral viability in the current political era[3].
Despite the fraud case, Becerra remains competitive in a wide-open gubernatorial race with as strong a chance as other candidates, though he needs a more convincing explanation for how $225,000 in donated contributions were misappropriated[3].
Different views on the topic
Becerra’s campaign emphasizes his 35 years of public service in California, highlighting a decades-long record of accomplishments as a foundation for his gubernatorial candidacy[1].
Throughout his congressional career, he successfully advocated for the Affordable Care Act, which extended health coverage to millions of Californians[2].
As Health and Human Services secretary, Becerra achieved a significant policy victory by negotiating lower prescription drug prices for the first time in American history, affecting medications such as blood thinners and diabetes drugs[1][2].
His tenure as California attorney general demonstrated his willingness to challenge federal authority, including 123 lawsuits against the Trump administration with most resulting in victories for California families[2].
At a recent health care forum, Becerra positioned himself as the “health care governor” candidate with direct experience managing a massive federal agency and responding to public health emergencies[2].
His campaign argues that voters should evaluate candidates based on their ability to deliver results and tackle difficult challenges, particularly in addressing health care affordability and resisting Trump administration cuts to safety net programs[1][2].
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