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Pool Builder Scams – What To Look Out For When Building a Pool

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Pool Builder Scams - What To Look Out For When Building a Pool

A growing number of pool builder scams are popping up from coast to coast. This comes after a recent increase in pool construction over the last two years. More and more consumers are complaining of mismanaged pool installation projects. A list of builders under investigation continues to grow by the day.

Pool Builders Facing Serious Jail Time For Allegedly Defrauding Homeowners

District Attorney Terry Houck is accusing 58-year-old Roger Kornfeind of scamming 76 people in Northampton County out of $1,378,146 in down payments for pools he never installed. Houck alleges Kornfeind had been collecting deposits but failing to install pools and hot tubs he had been contracted for.

Deputy District Attorney Jim Augustine suggested that a growing number of consumers looking to have a pool installed during the pandemic created an easy crime of opportunity.

“I think it certainly helped that Mr. Kornfeind was able to have a steady stream of people looking for swimming pools because public pools were closed. There were limited activities in the public, in the community during the quarantine,” said Augustine.

The allegations are that Kornfeind’s company Hydro Dynamic Pools was undercutting the market with zero intention to complete any of the projects he was selling, telling customers: “‘I don’t care what anyone else is telling you, I’ll get you swimming in 90 days or 60 days,’ and that led to a lot of this,” said Augustine.

A Systemic Problem Of Pool Builder Fraud Is On The Rise

It’s a problem that isn’t isolated to one particular market and has been popping up anywhere and everywhere that there is a white-hot demand for pools. Consumer confidence and low-interest rates on pool financing have caused a spike in consumer interest.

One company Amore Pools out of Indian River County in Florida is facing serious allegations that include 16 crimes. Charges include seven counts of identity fraud, four counts of money laundering, insurance fraud, contracting without a license. In addition, they’re charged with making false statements of compliance and participating in a scheme to defraud.

Owners Chrystal and Brian Washburn of Treasure Coast are accused of taking large deposits to build inground pools, but never completing the projects. One alleged victim, Alice Patterson, claims after paying Amore Pools $21,000 in deposits she was left with a stagnant and dangerous hole in her backyard – and nothing else. She claims the couple was charismatic and had a believable sales pitch which she bought into. However, after months went by with excuse after excuse without any work being performed. Patterson says she discovered a Facebook group where other alleged victims were sharing similar stories.

Officials claim the Washburns were accepting large deposits to begin pool projects. Prosecutors allege the work that was performed hurt the structure of buildings. There are accusations that work also passed property lines, and remained untouched for months at a time.

The now-defunct company faces a litany of charges stemming from over 150 homeowners in six counties. At least a 25% deposit was collected on the majority of them, FDLE agents said; with the overwhelming majority of those projects left uncompleted by Amore’.

Homeowners Getting Taken By Pool Builder Scammers

The pervasive problem of pool builders taking advantage of unwitting customers is an issue that recently arose in South Carolina. There is a long list of unsatisfied customers who want their day in court with Travis Taylor. Officials have since revoked his ability to obtain a permit and construct pools in Aiken County. Court documents go so far as to accuse Taylor of a “scheme to defraud”. Records cite “multiple incidents” where he took deposits for inground pool projects and failed to complete the job.

Taylor is by no means a licensed pool contractor. In the state of South Carolina, he actually doesn’t have to be. Right now the official laws on the books in that state only require a license if you’re going to be building commercial pools in places like hotels and water parks. State legislators tried to change that earlier this year but the bill failed to pass.

Scammers are cashing in on an increased consumer demand for inground pools and defrauding homeowners
Scammers are cashing in on an increased consumer demand for inground pools and defrauding homeowners

Scammers Taking Advantage of Increase in Demand for Swimming Pools

The enthusiasm to capitalize on the momentum of the pool industry has drawn many inexperienced and unscrupulous pool companies who are eager to start installing pools. The state contractors board began fining ex-Cabot firefighter turned pool builder – Austin Logan $400 each day after leaving 14 pool projects abandoned in various stages.

The Cabot fire department to which Logan was employed fired him. Citing conduct that brought into question the integrity of the fire department and mayor’s administration, Logan was terminated.

Jamie Wilhite, an investigator for the Arkansas Contractors Licensing Board, has been investigating Logan. “We’ve had around six pools at $126,000 that nothing has been done and we’ve got a little over half a million dollars of about eight pools that the projects are not finished,” said Wilhite.

Builder Accused of Skipping Town With Money

The situation isn’t much better for homeowners down in Miami who have been dealing with pool builders who have allegedly taken deposits and skipped town altogether.

Angel Lacasse said he contracted with Ricardo Villarroel’s company, Villa Pavers and Pools. Lacasse says he paid a deposit of $21,000 to have a pool built in his backyard. Villarroel has been arrested by authorities and is charged with defrauding homeowners for over a million dollars.

Luis Alvarez Daboin of Conquer Pools, and Villa Pavers and Pools salespersons Michael Borrego and Laura Ballester Alpizar in addition to Villarroel himself, are now facing additional racketeering charges associated with the investigation. Over 100 homeowners across the state of Florida are claimed to be affected in this case.

Subcontractor Allegedly Operating Another Businesses License

The problem is symptomatic of the frenetic pace of which pools are being built across the country. Quite often state licensing departments simply can’t keep up with the volume of complaints they are receiving from homeowners. The amount of open investigations into allegations of fraud and negligence has been increasing exponentially in sync with the increase in consumer interest.

*A&S Pools and Pavers is a pool builder who allegedly provided misleading information to the North Carolina Licensing Board for General Contractors. They’ve been accused of dropping the ball and allowing A&S to operate. The company claims that it is licensed on its website but investigators couldn’t find any license that is attached to the owner or the business. A search of permits uncovered a completely different company name listed on them.

*(not affiliated with Anthony & Sylvan Pools)

A company called Gabbidon Construction or Gabbidon Builders, both owned by Leonard Gabbidon was listed on 10 of the pool permits. The North Carolina Licensing Board filed a complaint stating Gabbidon failed to disclose a bankruptcy in 2020 and instead claim he misled them on his application.

Meanwhile, A&S customer Janet Hadjar’s backyard still looks like an abandoned construction zone. After paying owner Mario Salmeron $33,000, Hadjar claims construction came to a halt when A&S complained of delays and began making excuses. Hadjar says she has no idea who Leonard Gabbidon is and wants answers on why Salmeron was allowed to use Gabbidon’s license. “I am a little surprised that it has gone this far,” said Hadjar. “So when I found out he was using another contractor’s license, I was shocked.”

Pool builder scams are on the rise and the number of abandoned pool construction projects is increasing
Pool builder scams are on the rise and the number of abandoned pool construction projects is increasing

What to Look Out For When Building a Swimming Pool

Ryan Baird, owner of Beyond Blue Pools said consumers should be on the lookout for “can’t miss deals” that are too good to be true. “Homeowners need to get quotes from at least a dozen pool builders and evaluate prices,” said Baird.

“Watch out if the builder is coming in ten to twenty thousand dollars under the lowest bid you are getting,” said Southern Poolscapes co-owner Aaron Rogers, “If they don’t know how to price a pool to begin with, that is definitely a big red flag.”

Emile Stinchcombe, owner of Aquaguard Pools said, “We’ve definitely seen more of this since the pandemic started. Homeowners need to really research and do their homework before hiring just anyone to work in their backyard. The consequences can be absolutely devastating.”

“Some of the things you want to look for are open litigations. Complaints on review sites or on social media are also an indication that things may be going south,” said Stinchcombe.

Jason DeBosky a Virginia-based inground pool builder and owner of Crystal Blue Aquatics said, “There are numerous things consumers can do to make sure the process goes smoothly. Research pool builder reviews. Also ask to go on a “pool tour” of past completed jobs and ask for references from past customers. Any pool company worth their salt will jump at the chance to provide solid references.”

“How you pay your contractor is extremely important,” said Brandt Gibert, owner of Windgate Custom Pools a pool construction company in New Orleans. “Avoid paying a huge down payment upfront. That gives the pool contractor incentive to continue to drive the construction process forward. Make sure payments are chained to major milestones of work being performed. Work with a lender that puts cash in your hands. Don’t sign off on work that hasn’t been completed to your satisfaction.”

4.7/5 - (55 votes)

Editor in Chief of Pool Magazine - Joe Trusty is also CEO of PoolMarketing.com, the leading digital agency for the pool industry. An internet entrepreneur, software developer, author, and marketing professional with a long history in the pool industry. Joe oversees the writing and creative staff at Pool Magazine. To contact Joe Trusty email [email protected] or call (916) 467-9118 during normal business hours. For submissions, please send your message to [email protected]

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Landslide Damages Homes, Destroys Swimming Pool in California

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Landslide Destroys Home, Damages Swimming Pool in California

A landslide wreaked havoc in Sherman Oaks early Wednesday morning, causing millions in damage and virtually destroying one homeowner’s swimming pool. The catastrophe unfolded at around 3 a.m. following reports from residents in the 3700 block of North Ventura Canyon Avenue, who noticed downed power lines and a large tree fallen into a backyard, as detailed in a press release by the Los Angeles Fire Department.

Upon arrival, firefighters encountered a significant portion of the hillside had shifted downward, endangering at least three homes and inflicting heavy damage on another under construction. Video footage captured by OnScene.TV revealed a gaping crack splitting through the backyard of one residence, with a section of the home visibly tilting to one side.

While no injuries were reported, several individuals were evacuated from at least one home, with firefighters resorting to pumping water out of a swimming pool to alleviate additional strain on the hillside. Unfortunately, part of the pool and home ultimately collapsed down a 30-foot cliff destroying another residence that was still under construction.

Tieleman Movable Floors

Responding to the crisis, the Los Angeles Department of Building and Safety initially deemed one home unsafe, red-tagging the structure. However, their assessment later extended to two homes deemed unsafe and a third severely damaged, marked with a yellow tag. Ongoing drone surveys by firefighters aim to assess the extent of the damage and potential risks.

At present, the exact cause of the landslide remains undetermined, according to LAFD spokesperson Nicholas Prange. Requests for comment from the Los Angeles Department of Building and Safety went unanswered.

Authorities seized the opportunity to remind residents of the necessity for year-round emergency preparedness, emphasizing the looming threats posed by wildfires and heavy rainstorms capable of triggering landslides.

The unfortunate incident follows March’s heavy precipitation in Southern California, with Sherman Oaks experiencing 1.95 inches of rainfall over March 6th and 7th, as reported by the National Weather Service.

4.9/5 - (12 votes)

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BofA Downgrades Latham Group Citing Weak Pool Construction Market

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BofA Downgrades Latham Group Citing Weak Pool Construction Market

Latham Group (NASDAQ: SWIM), a prominent player in residential swimming pool construction, faced a setback as Bank of America downgraded its stock due to concerns over sluggish new pool construction and increased decrementals.

With the downgrade, SWIM’s stock plummeted by 23.78% during pre-market trading on Wednesday, settling at $2.50, marking an 11% dip below its 200-day simple moving average.

Bank of America revised its recommendation on Latham Group stock to Underperform, slashing the price target from $4.50 to $2.60.

In its 2024 guidance announcement, SWIM projected revenues between $490M and $520M, falling short of the consensus estimate of $533.09M. Similarly, adjusted EBITDA guidance ranged from $60M to $70M, representing an 8% to 35% decrease compared to previous expectations.

The downgrade stems from a sluggish start to 2024, subdued projections for new pool construction, operational challenges leading to deleverage, and constrained free cash flow.

Management anticipates a 15% year-over-year decline in new pool construction for 2024.

These developments contrast with the optimistic sentiment among some sell-side analysts, who maintain a Buy rating on SWIM with an average price target of $3.54.

Scott Rajeski, President and CEO, stated, “Latham navigated a very difficult market environment in 2023. We successfully implemented cost reduction programs and lean manufacturing initiatives that structurally reduced our cost basis, while maintaining our investments in future growth. These cost reduction programs improved margins as the year progressed and we expect they will enable us to considerably expand margins and overall profitability once volumes recover. At the same time, we increased productivity and efficiency for our dealers, developed new fiberglass pool models, and invested in digital tools that have enhanced the consumer’s pool buying experience. As a result of these actions, Latham is positioned for meaningful market share gains as overall industry conditions improve.”

5/5 - (7 votes)

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Fluidra Launches €20 Million Venture Capital Fund – Fluidra Ventures

The company will invest €20 million in tech-based startups that offer emerging solutions that can enhance the pool and wellness sector.

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Fluidra Ventures

Fluidra, a global leader in connected equipment and solutions for the pool and wellness sector, is launching Fluidra Ventures, a €20 million corporate venture capital fund (CVC) investment to lead innovation in the sector.

The CVC will invest in each startup with the potential to revolutionize the industry on a global scale through their solutions, with a special focus on the United States and Europe. The goal of this first three-year phase is to build a solid portfolio of startups through investing in innovative companies.

The CVC will target startup initiatives that enhance efficiency, connectivity, sustainability and safety in the swimming pool and wellness business, leveraging IoT, computer vision and robotic solutions. It is looking for startups that add value to the pool and wellness sector with innovative business models, fostering direct customer interaction through sales, subscriptions and other channels. The CVC has already invested in Coral Smart Pool, a technology company aiming to transform the pool experience through Artificial Intelligence (AI) with an initial focus on pool safety.  

Fluidra Ventures will also invest in companies that innovate in engineering and science to advance materials and products that deal with swimming pool manufacturing, efficiency and maintenance.

Four segments and eight strategic guidelines

The fund is focused on four different segments — Commercial, Residential, Wellness and Mass Market—and has an investment thesis that covers eight strategic guidelines, from connected pools, resource optimization, digital platforms, innovative materials, security systems, personalized experiences, robotics and innovative consumable products.

Fluidra Ventures is fueled by Fluidra Lab, Fluidra’s open innovation division, and any startups that want to submit their proposals can send their investment pitch decks to [email protected]. Offering more than just investments, Fluidra aims to leverage this initiative to become the top strategic collaborator for the most innovative startups with the tremendous benefits that being an industry leader brings, such as: resources, scale successful business models, expertise, experience, and sales options.

“This initiative joins several others that we have at Fluidra to promote innovation in our industry. This is why here at Fluidra Ventures we’re excited about the transformative potential that this venture will have for the pool and wellness industry, driving forward innovation, sustainability and technological advancement”, said Eloi Planes, Fluidra’s Executive Chairman.

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