Valley water district official dismissed from embezzlement case. Two others to stand trial
A Fresno County judge dismissed all charges Feb. 21 against one of the defendants accused of embezzling from the Panoche Water District — and threw out several other charges against two former employees.
Judge Kristi Culver Kapetan did not find sufficient evidence to put Atomic Falaschi on trial.
Falaschi was the manager of the San Joaquin River Improvement Project. He’s also the son of Dennis Falaschi, the former general manager of the Panoche Water District. Both are Dos Palos residents.
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.
Atomic Falaschi, his father and Julie Cascia, the Panoche Water District’s former office manager, were accused of misusing nearly $100,000 in public funds after an investigation by the Attorney General’s office in 2018.
Additionally, Dennis Falaschi was charged with disposal of hazardous material and Cascia charged with transportation of hazardous materials.
During their preliminary hearing Friday, Kapetan dismissed the transportation of hazardous material charge against Cascia as well as a conspiracy charge and embezzlement charge. Cascia will still go to trial for three other embezzlement charges, Kapetan ruled.
The case agasint Dennis Falaschi also moves forward, minus four of the eight counts he was charged with.
After the hearing, Dennis Falaschi gave his son a hug. The younger Falaschi was ecstatic the charges were dropped against him. He said the ordeal has been costly, and difficult for he and his family.
“It is really hard when you lose your job in a small town like Dos Palos,” Falaschi said. “Especially when you have something like this hanging over your head.”
Atomic Falaschi was accused of diverting 1,500 pistachio trees, purchased by the district, to his property. His attorney Michael Aed said the state Attorney General’s Office failed to prove anything illegal had occurred.
State officials began looking at the water district several years ago after investigators found evidence that 86 drums of hazardous waste had been buried illegally on the district’s property. The discovery, prompted state regulators to also begin looking at the water district’s finances.
What they found was a practice of using district issued credit cards to buy personal items. Among the purchases made by Dennis Falaschi were two slot machines costing $2,805 and $2,701. Cascia purchased $4,109 worth of kitchen appliances for her home in Merced County.
The district was also accused of issuing personal loans to employees at zero interest.
Defense attorneys, Marc Days, Peter M. Jones, Nicholas Reyes, argued that their clients paid back everything they bought with their district credit cards and everything was transparent.
Days also said the board at the time didn’t have a problem with the practice.
“Regular audits were sent to the state controller’s office each year and no one said there was a problem, ever,” Days said. “Where is the evidence there was no authorization.”
AG prosecutor Matt Taylor said just because you repay the district for personal items you bought with a water district credit card doesn’t make it right.
“Restitution is not an excuse for larceny,” Taylor said.
This story was originally published February 21, 2020 at 5:09 PM.
