Billionaire Withdraws Endorsement and Funding From Embattled Congressman

California billionaire Stephen Cloobeck cites sexual assault allegations against Eric Swalwell as reason for ending support

Apr. 17, 2026 at 5:05pm

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A dimly lit, cinematic painting of an empty office chair in a shadowy room, with warm diagonal sunlight casting dramatic shadows, conveying a sense of loss and uncertainty.The withdrawal of financial and political support from a prominent backer casts a long shadow over the future of a disgraced politician.Manhattan Today

California billionaire Stephen Cloobeck has publicly withdrawn his endorsement and financial support for former Rep. Eric Swalwell, just hours after Swalwell suspended his gubernatorial campaign. Cloobeck cited the growing number of sexual assault allegations against Swalwell as the reason for his decision, and said he will be changing his party affiliation to Libertarian Republican as a result.

Why it matters

Swalwell's loss of Cloobeck's high-profile endorsement and funding is a significant blow to the former congressman's political future, especially as he faces mounting legal troubles related to the sexual assault allegations. This development also highlights the growing rift between some Democratic donors and the party establishment over issues of trust and accountability.

The details

Cloobeck, the founder of Diamond Resorts, told a Fox News reporter outside his Beverly Hills mansion that after receiving calls this week about the 'cesspool' of the Democratic Party and the 'serious sexual allegations' against Swalwell, he decided to withdraw his prior support. Cloobeck said he is now changing his party affiliation to become a Libertarian Republican, stating that the Democrats 'used to be' what the Libertarian party now represents.

  • On April 16, 2026, Cloobeck publicly withdrew his endorsement and financial support for Swalwell.
  • Earlier that same day, Swalwell had suspended his gubernatorial campaign.

The players

Stephen Cloobeck

A California billionaire and the founder of Diamond Resorts, who previously endorsed and financially supported former Rep. Eric Swalwell.

Eric Swalwell

A former Democratic congressman from California who recently suspended his gubernatorial campaign and is facing multiple sexual assault allegations.

Alvin Bragg

The U.S. District Attorney for Manhattan, New York, who has opened an investigation into the sexual assault allegations against Swalwell.

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What they’re saying

“I'm going to change me ***party affiliation, because I cannot stand this Democratic Party at all. I am done. Finito.”

— Stephen Cloobeck, Billionaire and Diamond Resorts founder

“He was blown away and said, 'I had no idea.'”

— Stephen Cloobeck, Billionaire and Diamond Resorts founder

What’s next

The U.S. District Attorney's office in Manhattan has encouraged any additional victims or witnesses to come forward and contact the Special Victims Division at 212-335-9373 as the investigation into the sexual assault allegations against Swalwell continues.

The takeaway

This case highlights the growing scrutiny and accountability that some high-profile politicians are facing, even from within their own party's donor base, when serious allegations of misconduct come to light. It also underscores the potential political fallout for those who are unwilling or unable to uphold the trust placed in them by their constituents and supporters.