NV water fraud known by officials, feds say

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RENO - Federal prosecutors say the project manager at the Truckee-Carson Irrigation District conceded he knew that water deliveries to Fallon farmers were being falsified.

In documents filed in federal court in Reno, authorities say David Overvold acknowledged the practice was going on and that he didn't stop it. But he maintained he never ordered any employees to "write-off" water.

Overvold, the district's lawyer Lyman McConnell and two TCID employees were named in a 10-count indictment handed up in December 2008 by a federal grand jury in Reno.

Federal prosecutors accuse them of carrying out an alleged scheme from 2000-05 to alter water delivery data to earn "efficiency credits" that would entitle the district to more water.

Trial is set for February 2010.