A West Basin Municipal Water District director, along with a married couple with ties to the director, have been charged with an embezzlement scheme to help the director pay approximately $20,000 in personal expenses, the Los Angeles County District Attorney’s Office has announced.
The defendants were identified as Ronald Craig Smith, 55; who serves as treasurer of the water district; Robert Earl Katherman Jr., 68; and his wife, Marilyn Katherman, 65. Robert Katherman is a lobbyist and former aide to L.A. City Councilman Curren Price, 9th District, according to media reports.
The Kathermans are scheduled to be arraigned on Aug. 27. Smith pleaded not guilty last week and is scheduled to return to court on Aug. 12 to set a date for a preliminary hearing.
Smith is charged with seven felony counts, including two counts of misappropriation of public funds, four counts of perjury and one count of conflict of interest. The Kathermans are charged with two counts each of misappropriation of public funds.
Prosecutors said that the embezzlement scheme occurred after Smith got the West Basin Municipal Water District board to make multiple contributions to help sponsor the Adopt A Storm Drain Foundation, a nonprofit educational foundation to promote water conservation run by the Kathermans.
The contributions occurred over a three-year period, beginning in August 2010. During the same period, Smith also contributed money from his district outreach fund that did not need board approval, prosecutors said.
Shortly after receiving the West Basin donations, prosecutors allege the Kathermans began writing checks from foundation accounts to schools and organizations that had no connection to the foundation. The checks allegedly covered school and college tuition, and paid for tennis and dance lessons, for Smith’s children. Adopt A Storm Drain checks also allegedly paid for repairs to Smith’s boat and his rent.
Smith also allegedly wrote checks from his West Basin discretionary account to pay school expenses for his children. Approximately $20,000 was stolen, prosecutors allege.
If convicted, Smith faces up to nine years in state prison. The Kathermans each face up to four years in state prison if convicted as charged.




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