2 Florida pool contractors arrested after allegedly failing to complete work, defrauding 16 customers

BUNNELL, Fla. - Two Florida pool contractors have been arrested after they allegedly failed to complete work and defrauded multiple customers. 

Detectives said they investigated 16 reports from victims who stated they hired Ohanu Waters to construct pools, but the business left them unfinished with no apparent intention to complete them.

15-month investigation, 16 reports of fraud

What we know:

Following an extensive 15-month investigation into numerous reports of fraud by Ohanu Waters Inc., the Flagler County Sheriff’s Office (FCSO) has arrested Michael Rusche and Diane Rusche, the owners of Ohanu Waters.

Between April 2024 and July 2025, FCSO detectives said they investigated 16 reports from victims who stated they hired the company to construct pools. However, the company left the pools unfinished with no apparent intention of completing them. Officials said multiple other victims reported the business failed to fully pay subcontractors, which resulted in liens being filed against their homes.

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During the investigation, detectives found that, in many cases, victims had paid up to 90% of the construction costs, but were missing pool equipment, had unfinished tiling or did not have final inspections. In other cases, construction had not advanced past the installation of the pool shell.

In addition to the FCSO investigation, the Better Business Bureau (BBB) investigated Ohanu Waters business practices in March 2024 due to multiple consumer complaints. The BBB issued Ohanu Waters an "F" rating due to a pattern of complaints and failure to respond to complaints.

Michael and Diane Rusche were both arrested and taken to the Sheriff Perry Hall Inmate Detention Facility, but they were later released on bond. (Credit: Flagler County Sheriff's Office)

On July 15, officials obtained arrest warrants for both 67-year-old Michael Rusche and 67-year-old Diane Rusche, from Palm Coast. The pair both face charges related to two counts of embezzlement – misappropriation of construction funds ($20,000 to $100,000). In addition, Diane Rusche faces grand theft charges.

Both Michael and Diane Rusche were arrested on their active warrants and transported to the Sheriff Perry Hall Inmate Detention Facility.

They were later released on a $20,000 bond and a $30,000 bond, respectively.

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‘Bad business’

What they're saying:

"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," Sheriff Rick Staly said. "This was a very involved case. I commend our detectives for their hard work building the case against these two fraudsters. Remember to always check out contractors you plan to hire with the Florida Department of Business and Professional Regulation, the Better Business Bureau and online reviews, and always have them sign a lien release for any payments you make to them certifying they have paid their subcontractors and suppliers. Failure to obtain a lien release could cause you to pay twice for the project."