Water official, his associates charged with embezzlement (updated)

A former aide to Los Angeles City Councilman Curren Price was charged in an embezzlement scheme Tuesday for allegedly using $20,000 in public funds to finance the education and athletic programs of a West Basin Municipal Water District official's children, according to a statement from the Los Angeles County District Attorney's Office.

Robert Katherman resigned from the city council office Monday, a spokeswoman confirmed. 

"Rob Katherman worked hard for this office over the last 13 months, however, his resignation is in the best interest of my district and my constituents," Price said in a statement. "The trust we are given by our community as public officials is a privilege that I have taken very seriously in my more than 20 years as an elected official and will continue to do so."

Katherman and his wife, Marilyn Katherman, are each charged with two counts of misappropriating public funds, according to a statement from DA's Office. They are scheduled to be arraigned on Aug. 27. 

Ronald Smith, who served as the water district's treasurer, allegedly got his board to make contributions to the Adopt A Storm Drain Foundation, which is run by the Kathermans, according to a statement from the DA's Office. Smith also allegedly contributed money from a fund he controlled that didn't need board approval.

In return, the Kathermans allegedly paid to cover school, college tuition, tennis and dance lessons for Smith's children, as well as paying his rent and for repairs to his boat, according to a statement from the DA's Office. Smith also allegedly paid school expenses for his kids from a water district discretionary account.

Smith was charged with seven felony counts, including two for misappropriation of public funds, four counts of perjury and one of conflict of interest, according to a statement from the DA's Office. He pleaded not guilty and will be back in court on Aug. 12 for a preliminary hearing.

He remains on the West Basin Municipal Water District.

"West Basin was disappointed by this news and it’s unfortunate for all concerned," said Donald L. Dear, president of the West Basin board. "We want our customers to know that despite this situation, West Basin will continue its hard work and commitment to maintain our water industry leadership in water recycling, conservation and water reliability."

As for Katherman, he is a member of the Water Replenishment District of Southern California. He was also a longtime City Hall lobbyist until Price hired him to advise on planning and economic issues. A call to the Katherman Company was not immediately returned. 

Smith faces nine years in prison while the Katherman each face four years, according to a statement from the DA's Office.

This story has been updated.

Correction: An earlier version of this article incorrectly identified Katherman as president of the Water Replenishment District.