Two high-ranking men in California politics were arraigned on felony conspiracy charges in federal court on Friday.

There are five co-conspirators in the bombshell case of political corruption and fraud.

Gov. Gavin Newsom's former chief of staff, Dana Williamson, was the first to be charged on Wednesday, indicted on 23 fraud-related charges.

Sean McCluskie and Greg Campbell both entered not guilty pleas Friday in court, though they are expected to change their pleas to guilty at their upcoming court hearings over the next three weeks.

Plea agreements are already on file for both men.

The fraud case alleges the five co-conspirators defrauded the federal government and took hundreds of thousands of dollars in campaign money to line their own pockets.

After the court hearing on Friday, McCluskie and his attorney declined to give a comment to reporters.

Campbell's attorney, Todd Pickles, however, provided a statement and took no questions.

"Mr. Campbell takes full accountability for his actions and is cooperating fully with the legal process," Pickles said in part.

The alleged kingpin, and the only person not cooperating according to prosecutors, is Williamson.

Williamson allegedly subscribed to false tax returns, claiming more than $1 million in business deductions that prosecutors said were for personal and nondeductible expenditures, like private jet travel, hotel stays, home furnishings and designer handbags.

She is also accused of illegally obtaining COVID-era PPP loans and helping funnel Xavier Becerra's campaign money to McCluskie.

McCluskie is the former chief of staff for Becerra.

Becerra previously served as both California Attorney General and the United States Health and Human Services Secretary. He is currently running for California governor.

Federal court documents allege that, unknown to Becerra, McCluskie stole $225,000 worth of Becerra's dormant campaign funds for his personal use.

Williamson is alleged to have helped facilitate it alongside Campbell, a high-profile political consultant. Court documents allege Campbell coordinated the theft through his companies and helped cover it up.

 "Mr. Campbell will, at the appropriate time, further discuss the charges, which do not include Mr. Campbell engaging in the advocacy or lobbying on behalf of any client, receiving any loans to Mr. Campbell or any company owned by Mr. Campbell, or Mr. Campbell profiting from the charged conduct," said Pickles on behalf of his client.

Both men are expected to plead guilty and potentially testify against Williamson for a lesser punishment for their alleged crimes if her case goes to trial.

"I continue to think the case is extraordinary," said Michael Wise, a Sacramento defense attorney unrelated to this case. "It's the misuse of donated funds for people who believed in the candidate, Mr. Becerra. So I think it's really important for the community that the case has been brought."

The drama in the courtroom could involve top brass in California politics if Williamson faces a jury trial.

"Is there a scenario where you could see Gov. Gavin Newsom and Xavier Becerra be subpoenaed to testify in a trial?" I asked Wise.

"Absolutely, absolutely. Especially Mr. Becerra and potentially the Governor. He would have no right to refuse, as far as I can tell, because it's a federal jurisdiction and he is a state employee," said Wise.

The federal court documents allege Becerra did not know anything about the scheme and nothing at this time suggests Newsom had any knowledge either of Williamson's wrongdoing.

The Governor's office placed Williamson on leave in November 2024, when they first learned she was under criminal investigation.

McCluskie will be back in court on Nov. 20 for a change of plea hearing.

Campbell's change of plea hearing is set for Dec. 4.