Dennis Falaschi, the ex-general manager of the Panoche Water District, pleads guilty to participating in a scheme to steal water from the Delta-Mendota Canal, implicating other employees and officials. The case sheds light on ongoing challenges in California’s water conservation efforts.
Former Water Official Pleads Guilty to Water Theft Scheme
FRESNO, May 28, 2024 – Dennis Falaschi, 78, the former general manager of the Panoche Water District, pleaded guilty in federal court to conspiring to steal water and filing a false tax return. The plea concludes a case that initially alleged a $25 million theft over two decades, reduced to $3.5 million in the final charges.
Falaschi and his co-conspirators used a secret pipe to siphon water from the Delta-Mendota Canal, an essential part of California’s Central Valley Project. This water was sold to farmers and other districts in the parched western San Joaquin Valley. Despite federal accusations, the plea agreement implied that Falaschi was not the mastermind and initiated only part of the water heist.
The long-running scheme began before 2000 when a leaking standpipe was discovered by a farmer, who instructed Falaschi not to report it. District employees later modified the pipe to control water flow undetected. The plea deal also hints that unauthorized water diversions continued beyond Falaschi’s tenure, implicating other district employees and officials.
Falaschi’s sentencing is scheduled for September, with a maximum potential prison term of eight years. The Panoche Water District has already reimbursed $7.5 million to the federal Bureau of Reclamation. The case’s complexity and broader implications for California’s water conservation efforts remain ongoing.
Jessica Garrison, Los Angeles Times
