FLAGLER COUNTY, Fla. — Two business owners were arrested for allegedly ripping off customers, according to the Flagler County Sheriff’s Office.
Michael and Diane Rusche, owners of Ohanu Waters Inc., were arrested following a 15-month investigation by the sheriff’s office into allegations of fraud related to unfinished pool constructions.
The investigation, which spanned from April 2024 to July 2025, uncovered 16 reports from victims who claimed that Ohanu Waters left pool projects unfinished and failed to pay subcontractors, resulting in liens against their homes.
“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 Flagler County Sheriff Rick Staly.
Detectives found that victims had paid up to 90% of construction costs but were left with missing pool equipment, unfinished tiling, or incomplete inspections.
In some cases, construction had not progressed beyond the pool shell installation.
Arrest warrants were issued for Michael Rusche for two counts of embezzlement, and for Diane Rusche for two counts of embezzlement and one count of grand theft.
Diane Rusche also faced an additional grand theft charge in another case.
Deputies arrested the Rusches on Tuesday.
The Better Business Bureau investigated Ohanu Waters in March 2024 due to consumer complaints, issuing the company an “F” rating for a pattern of complaints and failure to respond.
Sheriff Staly advised consumers to thoroughly vet contractors through the Florida Department of Business and Professional Regulation and the Better Business Bureau, and to obtain lien releases to avoid paying twice for projects.
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