PALM COAST, Fla. — The Flagler County Sheriff’s Office has arrested Michael and Diane Rusche, owners of Ohanu Waters Inc., following a 15-month investigation into allegations of fraud and embezzlement related to unfinished pool construction projects.
The investigation, conducted by the FCSO General Assignment Unit, revealed that between April 2024 and July 2025, 16 victims reported hiring Ohanu Waters to construct pools that were left incomplete. Victims claimed they paid up to 90% of the construction costs, but the work was not finished, and subcontractors were not fully paid, leading to liens on their homes, a sheriff’s office news release states.
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“When you promise to do something for your customers, take their money, and then leave them hanging, that’s not only bad business but that’s fraud,” said Sheriff Rick Staly.
Detectives found that many victims were missing pool equipment, had unfinished tiling, or lacked final inspections, the report states.
In some cases, construction had not progressed beyond the installation of the pool shell. Arrest warrants were issued on Tuesday for Michael Rusche, 67, and Diane Rusche, 67, both of Palm Coast, for multiple counts of embezzlement and grand theft, according to the report.
They were apprehended by the FCSO Fugitive Unit and deputies and were later released on bond.
The Better Business Bureau investigated Ohanu Waters in March 2024 due to numerous consumer complaints, ultimately issuing the company an ‘F’ rating for a pattern of complaints and failure to respond, the report states.
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