L.A. Councilman's Former Aide Charged in Alleged Embezzlement Scheme

A Los Angeles city councilman’s former aide appeared in court today in connection with charges that he and his wife were involved in an elaborate scheme in which funds from a nonprofit were used to pay personal expenses for a member of the West Basin Municipal Water District’s board of directors.

Robert Earl Katherman Jr., a 68-year-old former aide to Councilman Curren Price Jr., is charged along with his wife, Marilyn Katherman, 65, with two felony counts of misappropriation of public funds. The two are set to be arraigned Aug. 27 in a Torrance courtroom.

“I accepted his resignation yesterday,” Price said of Katherman. “He certainly has been a valued employee. I don’t have all the details surrounding his legal issues.”

The councilman said Katherman mentioned that there were “some legal issues pending,” but he “didn’t go into details when he resigned.”

Connie Llanos, Price’s spokeswoman, described Katherman as a “hard-working employee for 13 months.”

Katherman also serves as a director for the Water Replenishment District of Southern California, a groundwater management district. He represents cities on the Peninsula, Redondo Beach, Hermosa Beach, Manhattan Beach and Torrance.

Also charged along with the couple is Ronald Craig Smith, 55, who is on the West Basin Municipal Water District’s board of directors.

Smith -- who is described on the district’s website as the board treasurer -- pleaded not guilty last week to four felony counts of four counts of perjury by declaration, two felony counts of misappropriation of public funds and one felony count of conflict of interest.

Prosecutors said that the alleged embezzlement scheme occurred after Smith got the water district’s board to make multiple contributions to help sponsor the Adopt A Storm Drain Foundation, a nonprofit educational foundation to promote water conservation that is run by the Kathermans. Smith also allegedly contributed money from his district outreach fund that did not require board approval, according to prosecutors.

Prosecutors allege that the Kathermans began writing checks from foundation accounts to schools and organizations without any connection to the foundation shortly after receiving the donations from the West Basin Municipal Water District.

The criminal complaint alleges that Smith failed to disclose that he had been given money from the foundation to pay for college and high school expenses for his children, along with his rent and repairs to his boat.

Prosecutors also allege that Smith wrote checks from his West Basin discretionary account to pay various school expenses for his children.

Prosecutors allege that about $20,000 was stolen in all.

In a statement released last week, the water district noted that Smith -- who was elected to the board of directors in 2006 and represents a district that includes the cities of Carson, Palos Verdes, Rancho Palos Verdes, Rolling Hills Estates and portions of San Pedro -- remains on the board and can only be removed if convicted of a felony.

“West Basin was disappointed by this news and it’s unfortunate for all concerned,” said Donald L. Dear, the board’s president.

If convicted, Smith faces a maximum of nine years in state prison, according to the District Attorney’s Office. The Kathermans each face up to four years in state prison if convicted as charged, according to prosecutors.

--City News Service