Questions are resurfacing regarding U.S. Health and Human Services Secretary Xavier Becerra's knowledge of a corruption scandal involving the theft of $225,000 from his former campaign account. The issue has been brought to the forefront by Becerra's opponent in the California gubernatorial race, Steve Hilton, who has called for a review of Becerra's role by the U.S. Attorney General.
The federal investigation, initiated during the Biden administration, was not initially aimed at Becerra. However, it placed him in proximity to illicit financial activities. While Becerra was being appointed to his federal position, his chief of staff, Sean McCluskie, sought a higher salary than the federal government could offer. To address this, individuals involved in the scheme allegedly arranged for McCluskie to receive funds from Becerra's dormant state campaign account.
The scheme began to unravel when federal agents investigated the flow of money, which reportedly moved through a consulting firm associated with the former chief of staff to California Governor Gavin Newsom, Dana Williamson, and subsequently to McCluskie's wife for supposed consulting services. McCluskie, Williamson, and a Sacramento lobbyist named Greg Campbell were indicted and have since pleaded guilty to felony charges. McCluskie pleaded guilty to conspiracy to commit bank and wire fraud and faces a potential prison sentence of up to 30 years.
The Department of Justice, during the Biden administration, reportedly treated Becerra as a victim in the case, asserting that the scheme was conceived without his knowledge and that he would have opposed the payments had he been aware. Becerra has described the charges as a "gut punch."
As Becerra campaigns for governor of California, he faces a dilemma, needing to either claim ignorance or incompetence regarding the activities surrounding his campaign funds. He has publicly stated he was unaware of his chief of staff's scheme. The alternative argument of incompetence would suggest he was unable to oversee his key staff member, a position that critics argue would be detrimental to his candidacy for a leading governmental role.
Reports indicate that Becerra has largely avoided significant backlash on this issue from the California press thus far. While some Democrats raised the scandal during the primary, it was reportedly too late to impact Becerra's frontrunner status. Becerra's campaign has not yet responded to requests for comment regarding these allegations.