Local
Misuse — or misunderstanding? Valley water execs deny stealing more than $100K
Attorneys representing three former Panoche Water District officials accused of misusing more than $100,000 in public funds say the case against their clients doesn’t add up to wrongdoing.
The Attorney General’s office, after a year-long investigation, charged former general manager Dennis Falaschi, former office manager Julie Cascia and Atomic Falaschi, manager of the San Joaquin River Improvement Project and Dennis’ son.
The defendants face several charges, including embezzlement by public officials and conspiracy.
Additionally, Dennis Falaschi is charged with disposal of hazardous material and Cascia is charged with transportation of hazardous materials.
State investigators found evidence of 86 drums of hazardous waste that had been buried illegally on the district’s property. The discovery, prompted state regulators to also begin looking at the water district’s finances.
The Panoche Water District is a public agency that delivers water to landowners for irrigation, municipal and industrial uses in western Merced and Fresno counties.
All three defendants were in Fresno County Superior Court on Friday for their preliminary hearing. Judge Kristi Culver Kapetan will decide if there is enough evidence to move the case to the trial phase.
Prosecutor Matthew Taylor alleges district officials and employees blatantly used a water district credit card for their own personal uses, including the purchase of two machines costing $2,805 and $2,701 for Dennis Falaschi, kitchen appliances for Cascia and 1,500 pistachio trees for Atomic Falaschi’s property.
There are also allegations the water district paid for car repairs and employees performed landscaping duties at Falaschi’s home. One employee was given a $20,000 loan from the district. To help him pay it back, the district increased his salary to the same amount as the loan payment.
Peter M. Jones, who represents Dennis Falaschi, said the Attorney General’s investigation and the State Controller’s audit fell short. He said the district may have used the agency’s credit card to buy personal items, but it was recorded as such and paid back.
“Everything was transparent,” Jones said.
During his cross examination of investigator Charles Stone, defense attorney Marc Days asked him if he had reviewed the water district’s general ledger, showing the district’s expenditures, and he said he did not.
Jones said investigators failed to take into account records that show where district employees spent money on personal items — and then reimbursed the district.
The preliminary hearing resumes on Monday .
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