The FBI used a Democrat insider as an informant to infiltrate Governor Gavin Newsom's inner circle before the corruption probe expanded into the governor and his wife Jennifer Newsom.
Newsom's former chief of staff, Dana Williamson, was indicted on federal wire fraud charges last year.
Newsom is now under investigation, along with his wife Jennifer Newsom, after the corruption probe expanded.
Federal agents have contacted people and organizations close to the Newsoms, and some have been subpoenaed for records.
According to reports, there are several investigations related to Newsom and they are focused on Jennifer Newsom's taxes, as well as his chief of staff's actions.
The investigations did not originate from the main DOJ in Washington D.C., but are instead being led out of Sacramento, involving whistleblowers.
Democrat insider Alexis Podesta, 45, secretly recorded conversations during the criminal probe into Dana Williamson, 53, who pleaded guilty to federal fraud and tax charges in May.
The disclosure explains why Sacramento political insiders and lobbyists received FBI letters last fall informing them that their phone calls had been intercepted during the investigation.
Williamson's lawyer, McGregor Scott, confirmed that Alexis Podesta was wearing a wire during the investigation.
The revelation comes as Newsom and his wife, as well as members of the governor's inner circle, are under federal investigation.