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Feds say he masterminded an epic California water heist. Some farmers say he's their Robin Hood

Jessica Garrison, Los Angeles Times on

Published in News & Features

LOS BANOS, Calif. — Robert Zavala was fresh out of the Marines and looking to escape dead-end work at a poultry plant in the early 1990s when his old baseball coach — now the head of a local water district — swooped to the rescue with a job offer.

Zavala was grateful for the job, which eventually paid more than $150,000 a year and included perks such as free housing and a new truck. Grateful enough, he later testified in state court, that when he learned the public agency he worked for was stealing water from the federal government he kept his mouth shut. For years.

And then one day in 2016, FBI agents showed up at his house.

“They told me they were investigating my boss for water theft, and they wanted to know if I wanted to go to federal prison with him,” Zavala said in his testimony.

Zavala became one of many employees the FBI would interview about goings-on in the Panoche Water District, a public agency formed in 1951 that supplies irrigation for 38,000 acres of farmland in Fresno and Merced counties on the parched western side of the San Joaquin Valley.

The stories were “unimaginable,” one Panoche official later testified in the same civil case. Public funds were allegedly used to pay for housing and pickup trucks for employees, along with slot machines, illicit home remodels, tickets to Katy Perry concerts, even an employee’s court-ordered restitution for an assault charge, according to testimony in the civil case, court filings in a state criminal case and a related state audit.

 

Not to mention the alleged theft of 130,000 acre feet of water — enough to supply a small city for several years.

Federal prosecutors would eventually bring felony charges against Zavala’s old boss, the former general manager of the Panoche Water District, accusing him of one of the most audacious and long-running water heists in California history.

In a state with prolonged bouts of drought and unquenching thirst, stolen water is an indelible part of California lore. But this was not Los Angeles’ brazen gambit to take water from the Owens Valley. Or San Francisco’s ploy to flood part of Yosemite National Park for a reservoir. The water grab described in a federal indictment allegedly happened cat burglar-style, siphoned through a secret pipe, often after hours, to avoid detection.

Prosecutors have accused Dennis Falaschi, 77, a gregarious local irrigation official, of masterminding the theft of more than $25 million worth of water out of a federal canal over the course of two decades and selling it to farmers and other local water districts. According to the allegations, proceeds that should have gone to the federal government instead were used to benefit Falaschi, his water district and a small group of co-conspirators, much of it funneled into exorbitant salaries and lavish fringe benefits.

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