Zerohedge: Newsom's Financial Dealings Under DOJ Scrutiny

Summary

Governor Gavin Newsom and his wife, Jennifer Siebel Newsom, are reportedly under investigation by the Department of Justice for alleged "machine politics" in California. This involves a system where corporate lobbyists and nonprofits facilitate lucrative state contracts. Siebel Newsom's nonprofit allegedly paid her for-profit film company, Girls Club Entertainment LLC, approximately $1.64 million since 2012 for production and licensing rights to her documentaries. Since 2018, her nonprofit has paid a steady annual contracting fee of $150,000. Overall, Siebel Newsom has collected over $3.7 million in personal salary and LLC payouts funded by the nonprofit. Additionally, Newsom, as governor, requested a record $226 million in "behested payments" in one year, with hundreds of thousands of dollars going to a nonprofit founded by his wife, often from corporate giants seeking state contracts or regulatory relief. Questions also surround the Newsoms' purchase of two homes, including a $9.1 million property, with scrutiny over their claimed cash reserves and use of LLCs for transactions. Meanwhile, the article contrasts these financial questions with the perceived failure of a $7.12 billion water bond, Proposition 1, which voters approved for water storage but saw funds diverted to dam demolition instead of new reservoir construction.