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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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Suspect in Molotov attack at Sam Altman’s California home set to appear in court

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Suspect in Molotov attack at Sam Altman’s California home set to appear in court


SAN FRANCISCO — The man accused of trying to kill OpenAI CEO Sam Altman by throwing a Molotov cocktail at his San Francisco home is set to make an initial court appearance Tuesday.

Daniel Moreno-Gama, of Spring, Texas, traveled to San Francisco last week and hurled the incendiary device at Altman’s home Friday, setting an exterior gate on fire before fleeing on foot, authorities said. Less than an hour later, Moreno-Gama went to OpenAI’s headquarters about 3 miles (5 kilometers) away and threatened to burn down the building, they said.

No one was injured at Altman’s home or the company’s offices.

Authorities said Moreno-Gama, 20, expressed hatred of artificial intelligence in his writings, describing it as a danger to humanity and warning of “impending extinction,” according to court filings.

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“This was not spontaneous. This was planned, targeted and extremely serious,” FBI San Francisco Acting Special Agent in Charge Matt Cobo said during a news conference Monday.

Moreno-Gama is charged in California state court with two counts of attempted murder and attempted arson, San Francisco District Attorney Brooke Jenkins said. He tried to kill both Altman and a security guard at Altman’s residence, she alleged. Officials have not said whether Altman was home at the time.

Online state court records do not yet show whether Moreno-Gama has an attorney who can speak on his behalf.

Craig Missakian, U.S. Attorney, Northern District of California, middle, speaks during a news conference Monday, April 13, 2026, in San Francisco. Credit: AP/Jeff Chiu

Jenkins said the state charges carry penalties ranging from 19 years to life in prison.

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On Monday morning, FBI agents went to Moreno-Gama’s home in a Houston suburb where they spent several hours before leaving. He has also been charged by federal prosecutors with possession of an unregistered firearm and damage and destruction of property by means of explosives. Those charges carry respective penalties of up to 10 years and 20 years in prison.

“We will treat this as an act of domestic terrorism, and together with our partners, prosecute him to the fullest extent of the law,” U.S. Attorney Craig Missakian said when announcing the federal charges Monday.

The federal court documents do not list an attorney for Moreno-Gama, and he has not yet had his first appearance in federal court.

The document in which Moreno-Gama discussed his opposition to AI also made threats against Altman and executives at other AI companies, officials said.

“If I am going to advocate for others to kill and commit crimes, then I must lead by example and show that I am fully sincere in my message,” Moreno-Gama wrote, according to authorities.

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Advocacy groups that have issued grave warnings about AI’s risks to society condemned the violence.

Anthony Aguirre, president and CEO of the Future of Life Institute, said in a written statement Friday that “violence and intimidation of any kind have no place in the conversation about the future of AI.”

Another group, PauseAI, said in a statement that the suspect had no role in the group but joined its forum on the social media platform Discord about two years ago and posted about 34 messages there, none containing explicit calls to violence but one that was flagged as “ambiguous.”

Discord said Monday that it has banned Moreno-Gama for “off-platform behavior.”



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California dad charged with incest after allegedly assaulting daughter; DA may drop case

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California dad charged with incest after allegedly assaulting daughter; DA may drop case


When Makayla Rene Settles turned 18, she left Raleigh, North Carolina, for a fresh start. She moved to Moorpark, California, to live with her biological father, Stephen Vincent Chavez, with plans to attend college and build a new life. Two days after she arrived, her family says she called terrified and asking for help.

“It was just the fear in her voice, her crying. I didn’t need details. I knew something was wrong, and I said, ‘I’m on the way,’” said Carolina Sandoval, Makayla’s mother.

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Carolina says she rushed to Chavez’s home. When she saw her daughter, she was devastated.

“She’s barely walking,” Carolina said. “My brother picks her up and hugs her.”

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Makayla was taken to a hospital, where a rape kit was performed. According to the family, the results came back positive for Stephen Vincent Chavez’s DNA. He was arrested that same night and charged with incest, taking advantage of a position of trust, and providing alcohol to a minor.

Her cousin, Crystal Sandoval, was in disbelief. She said, “I was screaming, I was crying. I just kept thinking, why would he do that to her? This is something she could not come back from.”

Crystal was right. Five months later, Makayla Rene Settles died by suicide.

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“If I’m being honest, it feels like I handed my daughter to the devil,” said Carolina.

On the night Makayla was taken to the hospital, Sandoval says Chavez sent her a text message. It read, “I’m never drinking liquor again. I don’t want that blackout to happen again.”

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Now, the family says they’ve been dealt another devastating blow. According to Crystal Sandoval, the Ventura County DA’s Office has told them the case may not go to trial because Makayla is no longer alive to testify.

“The DA was essentially saying, ‘We don’t know if we have a case because she’s no longer here,’ and when she told me that, I immediately said, ‘No, we’re not going to let that slide,’” said Crystal.

Determined to get justice, Crystal took to social media. Her videos went viral, drawing widespread outrage and prompting hundreds to promise to show up to Chavez’s next court hearing, scheduled for April 21 at the Ventura County Courthouse.

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“It was like he took her sunshine away and just kind of broke her soul,” Crystal said.

The Ventura County District Attorney’s Office issued the following statement:

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“We have seen the posts online and want to let the public know that our Sexual Assault Unit continues to prosecute the defendant for this extremely serious crime. This case has been filed since July 2025, when the evidence supported the filing of felony charges. As with any case, prosecutors filed charges based on the evidence. The court sets bail. Our office successfully moved to increase bail to $250K in July 2025 when the case was filed. The defendant requested that bail be reduced, but we successfully argued against that. The defendant has since posted $250K bail and is out of custody. With respect to the upcoming hearing, the April 21 date is an early disposition conference. This is a standard pretrial proceeding where the court and parties address the status of the case and set future dates as appropriate.”

Despite that statement, the family says they have already been told a trial is not guaranteed, and they are not backing down. Chavez has pleaded not guilty. His next court hearing is April 21 at 8:30 a.m. in Courtroom 14 at the Ventura County Courthouse.

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California’s leading GOP candidate for governor reacts to Swalwell’s exit from race | CNN Politics

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California’s leading GOP candidate for governor reacts to Swalwell’s exit from race | CNN Politics


California’s leading GOP candidate for governor reacts to Swalwell’s exit from race

Republican Gov. candidate Steve Hilton joins CNN’s Dana Bash after one of his opponents, Rep. Eric Swalwell, exited the California governor’s race amid sexual misconduct allegations. “We desperately need change. And no Democrat can provide that,” Hilton says.



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