FLAGLER COUNTY, Fla. – The Flagler County Sheriff’s Office announced on Friday the arrest of two pool contractors accused of misappropriating construction funds.

Michael Rusche and Diane Rusche, both 67, from Palm Coast, own Ohanu Waters Inc., a business that had been under investigation for fraud by the sheriff’s office for 15 months prior to their arrest.

From April 2024 to July 2024, investigators received 16 reports alleging that Ohanu Waters Inc., hired for pool construction, had abandoned the work with no plan to finish it, according to the sheriff’s office news release.

Multiple other victims reported the business failed to fully pay subcontractors, which resulted 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. In other cases, construction had not advanced past the installation of the pool shell.

Flagler County Sheriff’s Office news release (excerpt)

Detectives obtained and executed arrest warrants for Michael Rusche and Diane Rusche on Tuesday, the release states.

They each face two counts of embezzlement – misappropriation of construction funds ($20,000 to $100,000), with Diane Rusche facing an additional charge of grand theft, according to the release.

Michael Rusche and Diane Rusche were later released on a $20,000 and $30,000 bond, respectively, the sheriff’s office said.