Former general manager of the Panoche Water District, Dennis Falaschi, has been indicted by a federal grand jury for allegedly orchestrating a massive water theft scheme that spanned over two decades. Prosecutors claim that Falaschi siphoned an estimated $25 million worth of water from a federal aqueduct and sold it to farmers and regional water districts, making a personal profit from the precious resource.
According to the indictment, Falaschi, who is also facing felony charges for misspending public funds, directed his workers to exploit a leak in the Delta-Mendota Canal in 1992. He allegedly instructed them to divert federal water into his district’s system, often under the cover of darkness, using an old turnout. The stolen water was then sold to farmers or returned to the canal in exchange for federal credits. To conceal the theft, Falaschi had his employees falsely classify the water as reclaimed runoff from local farms.
The alleged water theft amounts to approximately 130,000 acre-feet of water, enough to supply a small city for several years. The indictment further revealed that Falaschi made nearly $900,000 in salary and unreported income in 2016 alone. State and federal agencies, including the FBI and the federal Bureau of Reclamation, have declined to comment on the case.
While some farmers view Falaschi as a hydrologic Robin Hood who helped struggling farms during droughts, others question why it took state and federal water officials over two decades to notice the theft. The case highlights the ongoing issue of stolen water in California, where water scarcity and droughts have become a part of the state’s lore.
1 Response
Readers may find it useful to learn more about the Panoche Water District case and the issue of water theft in general. The documentary film “Water & Power: A California Heist” provides an in-depth exploration of the water crisis in California and the various ways in which water theft occurs. It sheds light on the political, environmental, and social implications of water scarcity and the impact it has on communities. The film offers a comprehensive understanding of the complexities surrounding water management and the need for sustainable