2nd Water District Official Fined in Conflict-of-Interest Lawsuit

The Santa Margarita Water District’s chief engineer became the second official punished over conflict-of-interest allegations when he agreed Friday to pay a $10,000 fine to settle a civil lawsuit filed by the Orange County district attorney’s office.

William B. Dye, 58, the district’s head engineer for 15 years, agreed to pay the fine and settle the complaint in which he was charged with six civil violations of the state’s Political Reform Act.

The complaint alleges that between 1990 and 1992, Dye failed to disclose about $5,000 in gifts he received from two companies that did the bulk of the engineering work at the district. In addition, he recommended contracts to those companies, in violation of state law that prohibits such action on behalf of donors who have given more than $250 in the previous 12 months.

“Mr. Dye paid a fine that was twice the amount of gifts he received,” said Marc Kelly, the deputy district attorney who is handling the Santa Margarita Water District cases.

“There was no evidence of criminal intent. Mr. Dye was not living the high life, riding in limos or going on trips. But he still got quite a lot of meals and we felt it was appropriate to file the civil lawsuit against him,” Kelly said.

The lawsuit and fine against Dye mirror similar action taken Wednesday against Don B. Schone, the district’s former chairman. Schone agreed to pay a $10,000 fine after prosecutors filed a civil lawsuit charging him with infractions similar to those Dye was accused of.