Putting a pool in your backyard is a major decision — costing upwards of $100,000, according to HomeGuide — that inevitably involves disruption.
But for Tampa Bay-area clients of Olympus Pools, the cost and disruption were far more than they bargained for.
As WFLA News Channel 8 reports, hundreds were left with nothing but holes in their backyards and bank accounts, their money swindled by Olympus Pools’ former owner James Staten.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
In May, he was sentenced to 20 years of prison followed by 30 years of probation — found guilty of 35 felony counts, including multiple counts of grand theft and contractor fraud.
“The sentence in this case is based on the fact that, out of all the testimony, you willfully ruined people’s lives,” Judge Mary Handsel said during the sentencing.
A pool contractor pays the price for fraud
At the hearing, the prosecutor read victim impact statements to convey just how much damage Staten caused beyond unfinished pools, including this one:
“James Staten stole nearly $25,000 from us, leaving us with an unfinished pool and a shattered sense of security. Because of his actions we were forced to dip into our 401k to complete the work, setting back not just our retirement but also our daughter’s college fund.”
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
In addition to his prison sentence, Staten must pay more than $1 million in restitution to be distributed to victims. He’s also barred from owning a business or having any credit cards while he’s on probation.
At one time, Staten’s business — Lutz, Florida-based Olympus Pools — claimed to be the largest pool builder in the state.
But Staten shut down the company in July 2021 amid a slew of complaints and what Staten called “constant negative media coverage.”
Florida’s Department of Business and Professional Regulation fined Staten $1.4 million and forced him to surrender his contracting licence. Later that same year, he and his wife filed for Chapter 11 bankruptcy.
According to prosecutors, Staten collected money from clients despite knowing their pools were unlikely to be built. He used $1.3 million of his clients’ money to fund his lifestyle.
“He was stealing money from a lot of us,” former Olympus client Toni Rosier told WFLA.
In addition to receiving their fraction of the restitution funding, some former clients may qualify to receive a portion of their money back through the Florida Homeowners’ Construction Recovery Fund.
However, the amount payable is capped and is unlikely to reimburse many clients for the full amount they lost.
So, what steps can you take to prevent this from happening to you?
Be aware of the signs of potential fraud
Watch out for contractors who solicit door-to-door because they “are in the area” or “have materials left over from a previous job,” the Federal Trade Commission (FTC) warns.
Get multiple quotes for your project and don’t rush into a decision. Before making a final decision, verify the contractor’s references — and call them. Many people ask for references from previous clients and then fail to call them. Also check Better Business Bureau reports.
Confirm that your contractor is licensed and insured. You can check the license with local or state regulators and ask the contractor for proof of insurance. Also look for a contractor who’s a member of the Pool & Hot Tub Alliance (PHTA) and ask if they provide a warranty or guarantee.
Be vigilant of contractors who pressure you to commit, only accept cash, demand full payment upfront or want you to borrow from a lender they recommend. Also beware if they ask you to get the permits.
Get estimates and contracts in writing. The contract should include a timeline, a detailed cost breakdown, procedures for managing changes to the project and steps for resolving disputes. If things go wrong, keep detailed written records of conversations and events.
Set up a payment plan contingent on work milestones being completed and don’t pay in full upfront. Monitor expenses throughout the project to make sure they align with the estimate and ask for a receipt as proof of full payment once the contract is completed and paid for.
Once the project starts, watch out for subcontractors who contact you directly for payment, have frequent or excessive unexpected expenses and materials that are lower quality than what was agreed to in the estimate. Lack of activity at the job site is another red flag.
It may seem time-consuming to assess potential contractors and keep on top of their work, but this extra work could end up saving a lot of heartache — and your savings.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
