The political world was rocked this week by the dramatic and public unraveling of Eric Swalwell’s career, as billionaire Stephen Cloobeck—once a close friend and major benefactor—cut all ties with the embattled former Congressman amid mounting allegations of sexual assault. The fallout has been swift and unforgiving, with the story highlighting not just the personal consequences for politicians accused of misconduct, but also the role of powerful allies and the ever-present scrutiny of public life.
Swalwell, who had been a frontrunner in the race to become California’s next governor, found himself at the center of a storm after four women came forward with allegations of sexual assault, including a former aide who accused him of rape at a charity gala in April 2024. As reported by TMZ, The Post, and NBC Los Angeles, the accusations quickly gained traction, prompting bipartisan calls for his resignation and bringing his campaign to an abrupt halt.
At the heart of the controversy was Stephen Cloobeck, the billionaire businessman who had long supported Swalwell, both financially and personally. Cloobeck had donated a staggering $1 million to Swalwell’s campaign and even opened the doors of his $26 million Beverly Hills mansion to the politician as the allegations surfaced. But as the scandal grew, so did Cloobeck’s disillusionment.
According to The Post, Cloobeck confronted Swalwell at his mansion in early April 2026, delivering a message that was as blunt as it was final: “I just told him: ‘you busted the trust,’ I’m shocked, I’m disturbed and get the f--k out of here. Then I walked away and that was it.” The confrontation, witnessed by Cloobeck’s counsel, marked the end of a nine-year friendship.
For Cloobeck, the decision was rooted in principle. “You know, I live in the world of integrity, morals, ethics. I want what’s best for California and I am disturbed, and I cannot support Eric Swalwell anymore,” he told NBC Los Angeles. The billionaire, who had once endorsed Swalwell after ending his own gubernatorial campaign, was unequivocal in his condemnation. “I am no longer associated with a man that takes advantage of women. I support women’s rights.”
Cloobeck’s reaction was not just personal—it was also public and financial. He announced that he would provide “zero financial help” to Swalwell moving forward, a decision confirmed after his lawyer, who had initially defended Swalwell on CNN, withdrew support as well. Cloobeck also denied that he or any of his business entities had ever issued non-disclosure agreements (NDAs) to silence Swalwell’s accusers, a point of contention raised by those who said NDAs had prevented them from coming forward sooner. “There were no NDAs by any of my entities for any of these women,” Cloobeck told The Post.
Swalwell, for his part, maintained his innocence, releasing a video from inside Cloobeck’s mansion in which he furiously denied the rape and sexual assault claims. In his public statement announcing the suspension of his campaign, he said, “To my family, staff, friends, and supporters, I am deeply sorry for mistakes in judgment I’ve made in my past.” He added that the “battle to clear my name is my fight, not my campaign’s.”
Despite these denials, the pressure on Swalwell only intensified. On Monday, April 14, 2026, he announced his resignation from Congress, just days after suspending his gubernatorial campaign. The Manhattan District Attorney’s Office has since opened a sexual assault investigation, signaling that the legal ramifications of the allegations are only beginning.
Cloobeck’s decision to cut ties was not made lightly. As he explained to TMZ, he initially invited Swalwell to stay with him out of concern for the congressman’s mental health, fearing that the intense scrutiny and negative attention might lead to self-harm. “I was very concerned for his mental health, and I made sure he was OK. He is not here. He has left. I have no idea where he went,” Cloobeck said in his interview with NBC Los Angeles. But as the situation escalated, Cloobeck felt compelled to act decisively, prioritizing his own values of integrity and accountability.
Throughout their friendship, Cloobeck described Swalwell as a “gentleman” who would send pastries and cookies as a gesture of thanks after staying at the mansion. Yet Cloobeck emphasized, “As a businessman, I do not ‘bust the trust’ and always have integrity... which is not the case with Swalwell.” The sense of betrayal was palpable. Cloobeck told TMZ he was “devastated, disgusted, disappointed and shocked” by the allegations, adding that if he had ever seen signs of such behavior, he would have distanced himself from Swalwell long ago.
The allegations against Swalwell first gained national attention following a report in the San Francisco Chronicle, which detailed the claims of a former aide who said she was sexually assaulted twice while too intoxicated to consent. CNN later reported that four women had accused Swalwell of sexual misconduct, though major news outlets, including NBC News, noted they had not independently corroborated the claims. Regardless, the accusations set off a chain reaction that quickly ended Swalwell’s political ambitions—at least for now.
The case has sparked renewed debate about the use of NDAs in political circles, the responsibilities of donors and allies, and the broader issue of accountability for those in positions of power. Cloobeck’s public break with Swalwell underscores just how quickly fortunes can change when allegations of misconduct surface—and how even the most powerful allies may not stand by when trust is broken.
As the investigation proceeds, the story of Eric Swalwell and Stephen Cloobeck serves as a stark reminder of the high stakes in American politics, where integrity, transparency, and public trust remain paramount—and where the consequences for violating those principles can be swift and severe.