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By Samuel López | USA Herald - In a stunning twist that has California political circles buzzing, billionaire businessman and former Diamond Resorts International CEO Stephen Cloobeck is under arrest on a serious felony charge — attempting to prevent or dissuade a victim or witness from testifying.

Los Angeles County Sheriff’s deputies took Cloobeck into custody Tuesday morning in West Hollywood. He was handcuffed, processed, and released hours later after posting a $300,000 bond. The exact case tied to the charges remains unclear, but the timing has raised eyebrows across the political landscape.

This bombshell comes mere weeks after Cloobeck publicly severed ties with his one-time close friend and political ally, disgraced former Congressman Eric Swalwell. Cloobeck, a major Democratic donor, had been bankrolling Swalwell’s now-suspended campaign for California Governor — until explosive sexual assault allegations against Swalwell surfaced earlier this year.

Cloobeck didn’t just walk away. He reportedly kicked Swalwell out of his lavish California mansion, demanded the return of more than $1 million in support he provided, and made his break with the embattled politician loud and clear. The two had been longtime friends, with Swalwell even staying at Cloobeck’s L.A.-area home before the scandal erupted.

Cloobeck later told TMZ he confronted Swalwell directly, received an apology, and showed him the door.Now the tables have turned in dramatic fashion. Cloobeck himself jumped into the high-stakes race to succeed Gavin Newsom as California Governor before dropping out in November 2025 and throwing his weight behind Swalwell. That alliance now lies in ruins — replaced by felony charges and a very public reckoning.

Cloobeck’s attorney, Elias Dabaie, pushed back hard, telling TMZ: “These charges are false and we look forward to our day in court.”

The arrest has ignited fresh questions about power, loyalty, and accountability in California’s chaotic political arena. From massive campaign donations to luxury real estate and now criminal allegations, the Cloobeck-Swalwell saga reads like a modern-day political thriller — one with real victims, real money, and real consequences for everyday Californians watching their state’s leadership implode.

This isn’t just another Hollywood-adjacent arrest. It’s a stark reminder of how quickly fortunes and friendships fracture under the weight of scandal — and how the public is left demanding answers when the powerful turn on each other.

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