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An ex-California official quietly stole over $1.5 million of water in a heist that lasted decades, but mysteries remain

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An ex-California official quietly stole over .5 million of water in a heist that lasted decades, but mysteries remain


A former California official pleaded guilty to conspiring to steal more than $1.5 million of water, but the decadeslong water heist case still has more questions than answers.

Dennis Falaschi served as the general manager of the Panoche Water District in Fresno and Merced Counties, located in central California, from around 1986 to 2017. The public water district bought water from the federal government and collected drainage water from farms, both of which it then legally sold to farmers in the area, according to a statement issued by the US attorney’s office for the Eastern District of California on Tuesday.

But after Falaschi discovered some of the federally owned water was leaking from an old pipe into a separate canal, the pipe was modified so it could be open and closed, allowing water to be taken “on demand,” prosecutors said.

The US attorney said Falaschi was responsible for stealing somewhere between $1.5 million and $3.5 million worth of water. Prosecutors also said that between 2011 and 2016 Falaschi was paid for water that he had sourced legally, but he did not report the income on his tax returns.

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In a plea agreement filed Thursday, Falaschi pleaded guilty to one count of conspiring to take federally owned water and one count of filing a false tax return.

A lawyer for Falaschi did not respond to a request for comment from Business Insider. His sentencing is set for September.

While the plea provides some answers, many questions remain in the case that farmers in the San Joaquin Valley have been watching for years.

When Falaschi was indicted in 2022, prosecutors painted him as the mastermind of a plot that lasted from around 1992 to 2015 in which more than $25,000,000 worth of water was stolen from the federal government, or more than 130,000 acre-feet of water.

The indictment said proceeds from the theft, which should’ve gone to the federal government, instead when to Falaschi and eight co-conspirators in the form of “exorbitant salaries, fringe benefits, and personal expense reimbursements.”

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The Los Angeles Times, which published a deep-dive into the alleged heist in April, reported that while some farmers were angry with Falaschi, others described him as the “Robin Hood of irrigation,” ensuring they could get the water they needed.

Falaschi’s plea agreement claims he’s responsible for stealing only a fraction of the original $25 million prosecutors accused him of taking in the original indictment. The plea agreement also said Falaschi was one of several people involved in the misconduct and that he was unaware of the full extent of the misconduct.

Of the water Falaschi took, the plea agreement said almost all of it was taken to “blend down and reuse drainage water, which helped protect farmland and improve water quality in the San Joaquin River.”

“The improved water quality contributed to the San Joaquin River being removed from the list of impaired waters under California’s Clean Water Act,” the plea agreement said, adding, “There was no evidence that Mr. Falaschi directly benefitted from the misconduct.”

The Times reported the plea raises even more questions about who was stealing the water, who was making money off of it, and why it took the federal government so long to notice.

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The mystery surrounding the case continues as water use in the state coms under increasing scrutiny, with droughts and water shortages forcing California officials to reconsider how water is used and allotted.



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California tech leaders challenge progressive policies as billionaires, businesses flee: report

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California tech leaders challenge progressive policies as billionaires, businesses flee: report


A group of tech industry leaders and self-described “radical centrists” are vowing to push back on left-leaning policies in California that are causing an exodus among wealthy entrepreneurs and businesses from the Golden State.

The New York Post reported that the group held an event attended by about 350 people in Mountain View, California, that featured elected officials, including San Jose Mayor Matt Mahan, San Francisco District Attorney Brooke Jenkins, tech industry leaders and hundreds of attendees who want to challenge the progressive tilt of the state’s policies.

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The meeting comes as several prominent wealthy entrepreneurs have left California to avoid a proposed 5% one-time wealth tax on billionaires who were California residents at the start of this year, with the tax due next year. Meta CEO Mark Zuckerberg, Google co-founders Larry Page and Sergey Brin, Oracle founder Larry Ellison and PayPal co-founder Peter Thiel are among those who have moved assets or relocated from California. 

Business leaders who are spearheading the group urged those in attendance not to give up on California by leaving and instead push back on left-leaning policies by electing more moderate politicians.

CHEVRON WARNS NEWSOM’S ‘ADVERSARIAL’ ENERGY AGENDA WILL CRIPPLE CALIFORNIA ECONOMY, SEND GAS PRICES SOARING

Y Combinator CEO and founder Garry Tan launched “Garry’s List” to educate voters about California politics. (David Paul Morris/Bloomberg via Getty Images)

“Some people have decided to leave our state as some kind of heroic thing. Like, ‘I’m going to Florida,’” Ripple Chairman Chris Larsen said at the event, according to the Post’s report. “That is not brave. That’s surrender. So, let’s get involved. Let’s take back our state.”

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Larsen said the group needs to “fight on par with the unions when they’re proposing stupid job-killing ideas like the San Francisco CEO tax.” 

He also called out Democratic politicians who are competing to become the party’s nominee for California governor, including former Democratic presidential primary candidate Tom Steyer, Rep. Eric Swalwell and former Rep. Katie Porter for supporting the union-backed CEO tax.

O’LEARY BLASTS CALIFORNIA WEALTH TAX AS ‘BAD MANAGEMENT,’ CALLS ON RESIDENTS TO ‘HIRE’ NEW LEADERS

Policies such as the San Francisco CEO tax and a proposed wealth tax targeting billionaires have sparked pushback from California centrists. (Justin Sullivan/Getty Images)

He said it’s “really disappointing,” and it reflects the pressure that labor unions have put on the state’s elected officials. Larsen added that while the group isn’t anti-union, it aims to balance labor’s ability to influence elected officials.

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Y Combinator CEO Garry Tan hosted the event after he launched “Garry’s List” last month to serve as a “citizen’s union” to support centrist candidates in California who are supportive of policies to improve the state’s schools and addressing issues related to housing and public safety.

Tan criticized Steyer, saying he’s attempting to “buy the governor’s mansion to raise your taxes,” and praised Mahan as the “next governor of California.”

TOP DEMS SANDERS AND REICH RAMP UP BILLIONAIRE TAX PUSH, SAY WEALTHY HAVE ‘ADDICTION’ TO GREED

The hotly contested Democratic primary to replace Gov. Gavin Newsom will be a flashpoint for the brewing battle between centrists and progressives. (Justin Sullivan/Getty Images)

The Post’s report noted that Garry’s List is focusing on voter education efforts through a blog Tan writes with the assistance of AI. Tan launched the site criticizing anti-growth policies, wealth taxes and a strike by San Francisco teachers.

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Garry’s List is one of several groups that have been formed in an effort to stem the leftward lurch of California’s politics.

A group called Grow California was created by Larsen and Tim Draper, which will spend about $40 million to support “pragmatic” candidates focused on addressing issues like the cost of living.

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Another group called Building a Better California was launched by former Google CEO Eric Schmidt, venture capitalist Michael Moritz and other tech leaders. It has raised over $45 million to help advance initiatives to reform tax policy and spur development.



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Northern California’s House of Clocks has stood the test of time for 55 years

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Northern California’s House of Clocks has stood the test of time for 55 years


While we may lose an hour of sleep this coming weekend, one clock store in California is gearing up for one of its busiest times of the year: daylight savings.

It’s the House of Clocks, the largest clock company in Northern California, which was recently celebrating 55 years of business.

It’s a place frozen in time. Just visit the store’s 240-year-old grandfather clock. It’s got plenty of stories to tell, dating back to 1780.

“This is the oldest piece we have right now,” clocksmith Joey Hohn said.

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The House of Clocks is on the outskirts of Downtown Lodi in San Joaquin County.

“We have new, we have vintage, we have antique,” co-owner Sandy Hohn shared. “Honestly, it feels like not a day goes by that we don’t get a phone call or an email of somebody wanting to sell something for 100 different reasons.”

The clock store has been with the Hohn family for three generations. It’s all thanks to one family heirloom.

“When the first war started, [my grandparents] left everything and had to move,” Joey Hohn explained. “After the Second World War, my grandpa was stationed in Germany. They went back to the house that had been abandoned and the neighbor who they left the property to said, ‘As far as I’m concerned, everything in the house is still yours.’ They went back and got this, so this is my great-great-grandparents’ clock.”

You can find just about anything in the House of Clocks, from old grandfather clocks to clocks that can fit in the palm of your hand.

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What you can’t find anywhere else is the Hohns’ love for Lodi.

“We’ve made so many friends over the years out of customers,” Sandy Hohn said. “Friends that are just wonderful, that love collecting, and we keep them repaired for their families, which is awesome. They have sentimental value that’s passed down.”

That same love for the city and their community runs in the family.

“We had a customer that wanted to repaint their dial,” Joey Hohn explained. “We told them no because it was her father’s who had passed away. Every time he went to wind the clock, he placed his thumb in the same spot. When we told her that smudge there on the dial was her father, she said, ‘Back away, don’t you dare.’ It was just a good memory we have.”

While you can’t turn back time, what we can do is keep memories alive and treasure the present moment.

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“There’s so many personalities,” Sandy Hohn said. “We just try to find a good home for them.”



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Signs of spring blooming at Antelope Valley California Poppy Reserve after wet, warm winter

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Signs of spring blooming at Antelope Valley California Poppy Reserve after wet, warm winter


It’s beginning to look a lot like spring!

The warm and wet weather this winter has led to the start of a dazzling super bloom at the Antelope Valley California Poppy Reserve.

“We had an unseasonably warm winter as well, so there’s actually a lot of growth,” said Callista Turney with California State Parks. “We’re having early wildflowers that are already at the park. So if you look at the poppy live cam, it shows a lot of orange already.”

The rain has helped the early blooms, but it’s actually the heat that accelerated the growth of the flowers.

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“It will actually speed up the growth of the plants, so some of them were already blooming and that’s going to cause those blossoms to accelerate faster towards seed production. And the blossoms that are in the process of being formed, those are going to open up soon as well.”

We also sometimes see great super blooms in Death Valley National Park, Anza-Borrego Desert State Park, Joshua Tree and the Mojave National Preserve.

“It’s definitely a rare occurrence because we don’t always have the right conditions. It’s gotta be the weather, the wind, the rain, all coming together,” said Katie Tilford, Director of Development and Communications with the Theodore Payne Foundation.

If it continues to stay unseasonably warm, we’ll see a shorter bloom. The key to a longer season is milder weather.


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