BUNNELL, Fla. – A man and woman were arrested on Tuesday following a fraud investigation into their pool construction company, according to the Flagler County Sheriff’s Office.
Deputies said Michael Rusche and Diane Rusche, both 67 and from Palm Coast, were arrested on July 15 and charged with embezzlement after a 15-month investigation into their company, Ohanu Waters Inc., found that it failed to complete several projects.
Recommended Videos
FCSO said between April 2024 and July 2025, detectives investigated 16 reports from victims who stated they hired Ohanu Waters to construct pools, but the business left the work unfinished “with no apparent intention to complete them.”
Deputies also stated that multiple other victims reported the business failed to fully pay subcontractors, resulting in liens being filed against their homes.
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.
According to FCSO, in other cases, construction had not advanced past the installation of the pool shell.
Michael Rusche was charged with two counts of embezzlement/misappropriation of construction funds ($20,000 to $100,000).
Diane Rusche was also charged with two counts of embezzlement/misappropriation of construction funds ($20,000 to $100,000) and one count of grand theft. In addition, detectives also obtained a second arrest warrant for Diane Rusche for grand theft in a separate case.
The company owners were released on bond, according to the sheriff’s office.
“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.”
The sheriff also wants to remind others to always check out contractors they 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 made to them, certifying they have paid their subcontractors and suppliers.
Failure to obtain a lien release could cause people to pay twice for the project.
In addition to the FCSO investigation, the 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.