N※N

Newsom, Siebel Newsom Face Scrutiny Over Donor Funds to Wine Business

  //food-wine.news-articles.net/content/2026/02/03 .. -scrutiny-over-donor-funds-to-wine-business.html
  Published in Food and Wine on Tuesday, February 3rd 2026 at 20:50 GMT by New York Post
      Locales: California, UNITED STATES

Sacramento, CA - February 4th, 2026 - California Governor Gavin Newsom and First Partner Jennifer Siebel Newsom are facing renewed scrutiny following revelations that donor funds were directed to their wine business, Plum Loco, between 2018 and 2022. Financial disclosures show payments exceeding $5,000 categorized as "consulting" and "office expenses," prompting accusations of potential misuse of funds and a "pay-to-play" dynamic from Republican lawmakers and government watchdogs.

The disclosures, first reported by The Post, detail expenditures made during Newsom's tenure as both Lieutenant Governor and Governor. While the Newsom administration has defended the transactions as legitimate and properly documented business expenses, critics argue the nature of the "consulting" work remains opaque and raises serious ethical concerns, particularly given the Governor's position of public trust.

Republican Assemblyman Vince Fong was quick to condemn the payments, stating, "This is blatant. They're using donor money to benefit their personal business." This sentiment is echoed by several accountability groups who point to the potential for undue influence. "Even if technically legal, directing donor money towards a personal business venture while holding high office creates the appearance of impropriety," explained Sarah Chen, Executive Director of the California Ethics Coalition. "The public deserves a clearer understanding of what services were rendered to justify these payments."

Plum Loco, located in Mendocino County, is a family-run vineyard and winery established by the Newsoms. The company focuses on small-batch, sustainably produced wines. While operating a business is not inherently problematic for a public official, the source of funding for certain expenses - specifically donor contributions - is raising eyebrows. The core question revolves around whether the consulting and office expenses were genuinely necessary for the business's operation, or if they served as a veiled method to channel donor funds towards a privately owned entity.

The Governor's office, through spokesperson Erin Mellon, maintains the payments were standard business expenses and adhered to all reporting requirements. "These are standard business expenses and they've been fully disclosed and transparently reported," Mellon stated. However, this explanation hasn't satisfied opponents who demand more specific details. Critics are requesting a full accounting of the "consulting" services provided, including the scope of work, deliverables, and the individuals or entities performing the services.

This isn't the first time the Newsoms' business ventures have come under the microscope. Previous reporting detailed scrutiny of other financial arrangements and potential conflicts of interest. This latest development adds fuel to the fire, prompting calls for a more robust independent investigation.

The California Fair Political Practices Commission (FPPC) has acknowledged receiving complaints regarding the Plum Loco payments. While the FPPC confirmed they are reviewing the complaints, they have not yet indicated whether a formal investigation will be launched. The FPPC's decision will likely hinge on whether they can establish sufficient evidence to suggest a violation of state campaign finance laws or conflict of interest regulations.

Legal experts suggest proving intent is key in these types of cases. Establishing that the payments were deliberately made to circumvent campaign finance rules or provide an improper benefit would be necessary for any successful prosecution. However, even without proving illegal activity, the appearance of a conflict of interest can severely damage public trust.

The situation is particularly sensitive as Governor Newsom navigates a complex political landscape, including potential national ambitions. Any perception of impropriety could hinder his future prospects. The coming weeks are expected to be crucial as the FPPC deliberates and further details surrounding the Plum Loco payments are potentially revealed. This case serves as a potent reminder of the importance of transparency and ethical conduct for those in positions of public power and the need for rigorous oversight of campaign finance and potential conflicts of interest.