Victims of alleged pool scam begin to see results after months-long investigation

Victims of alleged pool scam begin to see results

After more than a year of waiting, victims of a Flagler County pool company accused of defrauding customers are finally seeing progress, though many say the fight isn’t over.

PALM COAST, Fla. - After more than a year of waiting, victims of a Flagler County pool company accused of defrauding customers are finally seeing progress, though many say the fight isn’t over.

What we know:

Michael and Diane Rusche, owners of the now-bankrupt Ohanu Waters pool company in Flagler County, were arrested this week after a 15-month investigation revealed they allegedly defrauded at least 16 customers. 

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Authorities say clients paid tens of thousands of dollars — roughly 80% of total project costs — only to be left with incomplete or abandoned pools. Some customers also had liens filed against their homes by unpaid subcontractors.

What we don't know:

Investigators say they may never fully uncover where the funds went or whether other subcontractors or customers were impacted. The scope of the alleged financial mismanagement remains unclear due to the company's bankruptcy and lack of full accounting records.

The backstory:

The investigation began after a series of complaints from homeowners who claimed their pool projects had stalled with little explanation. Detectives who visited the homes found unfinished work, missing materials, and instances where subcontractors had not been paid despite homeowners fulfilling their financial obligations.

What they're saying:

Complaints began accumulating more than a year ago, with the sheriff’s office opening its investigation in early 2024. The arrests came 15 months later, offering some closure for frustrated customers.

At least 16 of Ohanu’s customers paid the company "approximately 80% of the total cost of the pools and were left unfinished," according to documents.

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"This guy, we were getting so many cases and complaints on him, that it was clear he was defrauding these victims and taking their money and had no intent to actually build," said Flagler County Sheriff Rick Staly.