IN THE CIRCUIT COURT OF THE SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROW ARD COUNTY, FLORIDA

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS, STATE OF FLORIDA,

Plaintiff,

vs.

NATIONWIDE POOLS, INC., a Florida corporation; NATIONWIDE POOLS OF DADE, INC., a Florida corporation; NATIONWIDE POOLS OF W. PALM BCH, INC., a Florida corporation; NATIONWIDE POOLS, GULF COAST, INC., a Florida corporation, f/k/a STUART POOLS, INC.; KEITH LORING STUART, an individual; LYNN ANTONUCCI STUART, an individual; FELICIA JOSEPHINA MALLIA, an individual, TERRY LYNN EDWARDS, an individual, and THE KINGS HIGHWAY GENERAL CONTRACTING INC., a Florida corporation n/k/a NATIONAL CONSTRUCTION GROUP INC.,

Defendants. __________________________________ /

Case No. 13-CA-014854(12)

AMENDED COMPLAINT

Plaintiff, OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL

AFFAIRS, STATE OF FLORIDA ("Plaintiff' or the "Attorney General"), sues the Defendants,

NATIONWIDE POOLS, INC., a Florida corporation; NATIONWIDE POOLS OF DADE, INC.,

a Florida corporation; NATIONWIDE POOLS OF W. PALM BCH, INC., a Florida corporation;

NATIONWIDE POOLS, GULF COAST, INC., a Florida corporation, f/k/a STUART POOLS,

INC.; KEITH LORING STUART, an individual; LYNN ANTONUCCI STUART, an

individual; FELICIA JOSEPHINA MALLIA, an individual; TERRY LYNN EDWARDS, an

individual, and THE KINGS HIGHWAY GENERAL CONTRACTING INC., a Florida

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corporation n/k/a NATIONAL CONSTRUCTION GROUP INC., and states the following in

support hereof.

JURISDICTION and VENUE

1. This action is brought pursuant to Florida's Deceptive and Unfair Trade Practices

Act, Chapter 501, Part II, Florida Statutes ("FDUTPA").

2. Plaintiff is an enforcing authority of FDUTPA and is authorized by

§ 501.207(l)(a), Fla. Stat., to bring an action to obtain a declaratory judgment that an act or

practice violates FDUTPA. The Attorney General further is authorized by§ 501.207(l)(b), Fla.

Stat., to bring an action to enjoin any person who has violated, is violating, or is otherwise likely

to violate FDUTPA and by § 501.207(3), Fla. Stat., to obtain further equitable relief as

appropriate.

3. This Court has jurisdiction pursuant to Florida Statutes § 26.012 and FDUTP A.

4. Venue is proper in the Seventeenth Judicial Circuit as the statutory violations

alleged herein occurred in Broward County, Florida and affected more than one judicial circuit in

the State of Florida.

5. At all material times hereto, the principal place of business for Defendant

Nationwide Pools, Inc., Nationwide Pools of Dade, Inc. and Nationwide Pools of W. Palm Bch,

Inc. was in Pompano Beach, Broward County, Florida.

6. The principal place of business for Defendant The Kings Highway General

Contracting Inc. n/k/a National Construction Group Inc. is listed with the Florida Secretary of

State as 6574 N. State Road 7 #314, Coconut Creek, FL 33073, which is a post office box at The

UPS Store in Broward County, Florida.

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7. Defendants Keith Loring Stuart and Lynn Antonucci Stuart reside in Broward

County, Florida, are not in the military and are otherwise sui juris.

8. Defendant Felicia Josephina Mallia resides in Palm Beach County, Florida, is not

in the military and is otherwise sui juris.

9. Defendant Terry Lynn Edwards resides in St. Lucie County, Florida, is not in the

military and is otherwise sui juris.

The Parties

Nationwide Pools and National Construction Group

10. Defendant Nationwide Pools, Inc. was organized under the laws of Florida on or

about March 13, 2003 and maintained a principal place of business in Pompano Beach, Broward

County, Florida at all material times hereto.

11. Defendant Nationwide Pools of Dade, Inc. was organized under the laws of

Florida on or about September 2, 2008 and maintained a principal place of business in Pompano

Beach, Broward County, Florida at all material times hereto.

12. Defendant Nationwide Pools of W. Palm Bch, Inc. was organized under the laws

of Florida on or about January 25, 2007 and operated out of Nationwide Pools, Inc.'s corporate

office in Pompano Beach, Broward County, Florida at all material times hereto.

13. Defendant Nationwide Pools, Gulf Coast, Inc. was organized under the laws of

Florida on or about November 28, 2000 as "Stuart Pools, Inc." On or about September 14, 2010,

Stuart Pools, Inc. filed an amendment and name change with the Florida Department of State,

amending its name to "Nationwide Pools, Gulf Coast, Inc." Upon information and belief,

Nationwide Pools, Gulf Coast, Inc. maintained a principal place of business in Tampa, Florida

since 201 0, with a mailing address in Pompano Beach, Florida.

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14. At all material times hereto, Defendant Nationwide Pools, Inc. was the umbrella

or parent company of all the Nationwide Pools entities, including Nationwide Pools of Dade,

Inc., Nationwide Pools ofW. Palm Bch, Inc. and Nationwide Pools, Gulf Coast, Inc.

15. Defendants Nationwide Pools, Inc., Nationwide Pools of Dade, Inc., Nationwide

Pools of W. Palm Bch, Inc. and Nationwide Pools, Gulf Coast, Inc. are hereinafter collectively

referred to as "Nationwide Pools."

16. Nationwide Pools participated directly or indirectly through affiliates, agents,

owners, servants, employees, or other representatives, in the unfair and deceptive acts and

practices as set forth herein and/or controlled said acts and practices and/or had the authority to

control them.

17. Nationwide Pools, at all times material hereto, provided goods or services within

the definition of§ 50 1.203(8), Florida Statutes.

18. Nationwide Pools, at all times material hereto, solicited consumers within the

definition of§ 501.203(7), Florida Statutes.

19. Nationwide Pools, at all times material hereto, engaged in a trade or commerce as

defined by§ 501.203(8), Florida Statutes.

20. Defendant The Kings Highway General Contracting Inc. ("Kings Highway") was

organized under the laws of Florida on or about March 2, 2011 as a general contracting, repairs

and remodeling business.

21. On or about April 22, 2013, one month before Nationwide Pools ceased

operations, Kings Highway filed an amendment and name change with the Florida Department

of State, amending its name to "National Construction Group Inc."

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22. Kings Highway also moved its physical business location from Fort Pierce,

Florida, where Defendant Terry Lynn Edwards resides, to Pompano Beach, Florida, less than a

mile away from Nationwide Pools' principal place of business. The Kings Highway General

Contracting Inc. n/k/a National Construction Group Inc. is hereinafter referred to as "National

Construction Group."

23. National Construction Group now offers, advertises, markets and sells new pool

construction and remodeling services in addition to general contractor services.

24. National Construction Group provides goods or services within the definition of

§ 501.203(8), Florida Statutes.

25. National Construction Group solicits consumers within the definition of

§ 50 1.203(7), Florida Statutes.

26. National Construction Group is engaged in a trade or commerce as defined by

§ 501.203(8), Florida Statutes.

Keith Stuart, Lynn Stuart, Felicia Mallia and Terry Edwards

27. At all material times hereto, Defendant Keith Loring Stuart ("Stuart") was the

President ofNationwide Pools.

28. At all material times hereto, Defendant Stuart owned, managed and controlled the

day-to-day operations ofNationwide Pools.

29. At all material times hereto, Defendant Stuart participated in and controlled the

actions and practices of Nationwide Pools, possessed actual and/or constructive knowledge of all

unfair and deceptive acts and practices complained of in this Complaint, and directly participated

in and directed the unfair and deceptive acts and practices complained of herein.

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30. While he was still operating Nationwide Pools and continuing to collect monies

from Nationwide Pools' customers, Defendant Stuart formed National Construction Group with

Defendant Terry Lynn Edwards.

31. Faced with mounting lawsuits and consumer complaints, Defendant Stuart

intentionally bankrupted Nationwide Pools to avoid the reach of creditors and surreptitiously

transferred its remaining assets to National Construction Group, to the detriment of Nationwide

Pools' consumers. 1

32. Defendant Stuart is now actively selling new pools to Florida consumers under

the corporate name ofNational Construction Group.

33. Defendant Stuart is currently a silent partner in and/or owns, manages and/or

controls the day-to-day operations of National Construction Group in partnership with Defendant

Terry Lynn Edwards.

34. Prior to forming National Construction Group with Defendant Stuart, Defendant

Terry Lynn Edwards ("Edwards") was the President of Kings Highway and was a licensed

certified general contractor engaged in the general contractor business.

35. Defendant Edwards is currently listed with the Florida Secretary of State as

President ofNational Construction Group.

36. Defendant Edwards directly and intentionally participated in and assisted

Defendant Stuart with bankrupting Nationwide Pools and transferring its assets to National

Construction Group, to the detriment ofNationwide Pools' consumers.

37. At all material times hereto, Defendant Lynn Antonucci Stuart ("Lynn Stuart")

was the Vice President, Secretary and Treasurer ofNationwide Pools, Inc. and Nationwide Pools

1 As of September 19, 20 13, Defendants have not formally filed for bankruptcy.

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of W. Palm Bch, Inc. Defendant Lynn Stuart was also the Director of Nationwide Pools of

Dade, Inc.

38. At all material times hereto, Defendant Lynn Stuart functioned as the Office

Manager for Nationwide Pools, including managing all office, administrative and clerical

functions ofNationwide Pools.

39. At all material times hereto, Defendant Lynn Stuart directly participated in the

unfair and deceptive acts and practices complained of herein and/or controlled or had the ability

to control the actions and practices ofNationwide Pools.

40. Defendant Lynn Stuart had, or should have had, knowledge and awareness of the

unfair and deceptive acts being perpetrated upon Nationwide Pools' consumers.

41. Defendant Lynn Stuart participated in and assisted with the formation ofNational

Construction Group and the transfer of assets to National Construction Group, to the detriment of

Nationwide Pools' consumers.

42. Upon information and belief, Defendant Lynn Stuart is currently an employee

and/or the office manager of National Construction Group.

43. At all material times hereto, Defendant Felicia Josephina Mallia ("Mallia") was

the Finance and Operations Manager for Nationwide Pools.

44. Defendant Mallia was directly responsible for offering, generating, coordinating

and processing third-party and in-house financing applications and agreements; providing "pre­

approval" letters to consumers who sought third-party financing as described in more detail

below; and obtaining monies from consumers for deposits, progress payments, credit card

surcharges, late fees and upgrades.

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45. Defendant Mallia directly participated in the unfair and deceptive acts and

practices complained of herein, including but not limited to deceptive acts pertaining to pool

financing, providing pre-approvals for third-party financing, and soliciting monies from

consumers despite her knowledge ofNationwide Pools' inability to complete pool installations.

46. Upon information and belief, Defendant Mallia participated in and assisted with

the formation ofNational Construction Group, to the detriment ofNationwide Pools' consumers.

47. Upon information and belief, Defendant Mallia is currently an employee and/or a

manager ofNational Construction Group.

DECEPTIVE ACTS AND PRACTICES

48. At all material times hereto, Defendant Nationwide Pools was a licensed pool

builder and remodeler and advertised itself as specializing in the custom construction and

remodeling of pools, spas and rock waterfalls.

49. Defendant Nationwide Pools, through its agents and affiliates and the direct

actions of Defendants Stuart, Lynn Stuart and Mallia, engaged in a deliberate and systematic

pattern of misleading and deceiving Florida consumers at every stage of the pool construction

and sales process.

50. Defendant Nationwide Pools, through its agents and affiliates and the direct

actions of Defendants Stuart, Lynn Stuart, Mallia and Edwards, engaged in a deliberate and

systematic scheme to defraud consumers by bankrupting Nationwide Pools and fraudulently

transferring its assets to National Construction Group.

Sales and Advertising

51. Prior to ceasing operations in May 2013, Nationwide Pools falsely, unfairly and

deceptively advertised and offered an "on-time guaranty" in order to mislead Florida consumers

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into hiring Nationwide Pools over other pool companies. Defendant Nationwide Pools failed to

honor this guaranty and regularly took several weeks and months longer than promised to

complete construction.

52. Nationwide Pools falsely, unfairly and deceptively advertised manufacturer

rebates that did not exist. For example, Nationwide Pools offered a $2,500 Jandy® rebate that

appeared to be direct from Jandy®, but was in fact created, designed and offered by Nationwide

Pools. False serial numbers and "limited quantities" were advertised by Nationwide Pools on

these rebates in order to create a false sense of urgency and mislead consumers into hurrying into

pool purchase decisions. Nationwide Pools, through Defendant Stuart and other salespersons,

would then mark up the price of the pools and/or otherwise include the cost of the "rebate" in the

total price charged to consumers so that, in fact, no rebate or discount was actually obtained.

53. Nationwide Pools falsely, unfairly and deceptively advertised that it used only

"in-house employees" for its pool construction as compared to other companies that used

subcontractors. This representation was false, deceptive and misleading in that Nationwide

Pools used subcontractors for a majority of the pool construction process, but failed to provide

statutorily-required notices regarding lien laws that could subject its consumers to paying twice.

The company required and/or requested its subcontractors to wear Nationwide Pools shirts in

order to further mislead consumers into believing that in-house employees were constructing

their pools.

54. This misrepresentation, along with other acts of deception described below,

directly harmed consumers as evidenced by the multitude of liens that have been placed on

consumers' properties due to Nationwide Pools' failure to pay subcontractors for their work.

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55. Nationwide Pools falsely, unfairly and deceptively advertised certain "warranties"

that were either completely false or misleading or failed to contain pertinent disclosures. For

example, Nationwide Pools offered certain manufacturer "lifetime warranties" from Jandy®

that, upon information and belief, simply did not exist.

56. Nationwide Pools also offered "lifetime" and other warranties that it had no

intention of honoring. When customers had service and repair issues, Defendant Nationwide

Pools charged those customers for "deductibles" and "service calls" that were not disclosed

when the pools were purchased or at any other time. In fact, Defendant Nationwide Pools

charged consumers $75 or more for service calls on Jandy® equipment when Nationwide Pools

was being paid for those service calls by Jandy®. Thus, Nationwide Pools double-charged for

the same service, to the detriment of its customers.

57. Nationwide Pools also unfairly charged its customers "deductibles" in the amount

of $1,500 or more, in order for those consumers to receive the very service and warranty work

that Nationwide Pools had advertised to them as a selling point. These deductibles were not

disclosed to consumers when they purchased new pools from Nationwide.

58. Nationwide Pools falsely, unfairly and deceptively advertised, as evidence of its

"quality construction," certain superior technical specifications such as 8" thick walls and steel

placed at every 9", that were wholly false and were not in fact used in the actual construction. In

order to conceal its deceptions, Nationwide Pools intentionally withheld the second page of the

engineering plans (which contained the true specifications) from consumers.

59. All of the above false and misleading advertisements, promotions, guaranties,

warranties and misrepresentations, among many others, were intentionally designed to mislead

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consumers into hiring Nationwide Pools and did in fact mislead Florida consumers to their

detriment.

Financing

60. Nationwide Pools offered third-party and in-house financing to consumers.

61. Nationwide Pools was not licensed as a home improvement finance seller

pursuant to Chapter 520, Part IV, of the Florida Statutes.

62. Nationwide Pools, by and through Defendants Stuart and Mallia, unfairly and

deceptively "pre-approved" consumers for financing, regardless of their mcome,

creditworthiness or ability to obtain actual financing, in order to mislead those consumers into

signing pool contracts and giving Nationwide Pools large deposits. Nationwide Pools informed

these consumers of their "pre-approvals" both orally and in writing, without having obtained

actual pre-approvals from third-party lenders. These pre-approvals were baseless, falsified and

designed solely to lure consumers into believing they could afford the full price of the pools

being offered and into paying large up-front deposits.

63. Numerous consumers were eventually denied financing by third-party lenders, or

were not approved for the full amount of financing sought. In those cases, Nationwide Pools

refused to rescind the consumers' contracts or refund their deposits, even when the consumers

had specifically negotiated financing contingencies in their contracts. Consumers were routinely

threatened by Defendants Stuart and Mallia and forced to use their own funds to pay for the

remaining balances or lose the entire amount of their deposits.

64. Nationwide Pools, by and through Defendant Stuart, paid Defendant Mallia a

$100 cash commission for every pool contract she converted into a cash deal through these

tactics or otherwise.

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65. Nationwide Pools, by and through Defendants Stuart and Mallia, routinely and

deliberately misrepresented the terms ofthird-party financing arrangements to consumers.

66. Defendant Stuart personally financed consumers' pools by soliciting and

obtaining mortgages on their homes and requiring them to sign promissory notes for the total

outstanding balance.

Credit Card Surcharges

67. Nationwide Pools advertised that it accepted all major credit cards as a form of

payment.

68. This representation was deceptive and misleading, as Nationwide Pools failed to

inform customers that it would charge a three-percent surcharge for the use of a credit card until

the very end of the sale.

69. Nationwide Pools did in fact charge customers a three-percent credit card

surcharge and included such surcharge on its credit authorization forms, in violation of Florida

Statute§ 501.0117.

70. It also used the surcharge as a negotiation tactic, in some cases "waiving" the

surcharge as a "discount." This "discount" was illusory and misleading, as Nationwide Pools

could not legally charge a fee for the use of a credit card.

Unfair Charges

71. According to its contracts with consumers, which it titled "Swimming Pool

Purchase Orders," Nationwide Pools charged consumers the balance of monies owed according

to a pre-determined "draw" or "progress payment" schedule; for example, 30% on day of

excavation, 35% on day of gunite (concrete), 30% day on of tiling, and 5% prior to interior

finish.

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72. Notwithstanding the terms of its contracts, Defendant Nationwide Pools unfairly

and deceptively caused consumers to pay additional monies for unnecessary "upgrades" by

entering into "contract addendums."

73. Nationwide Pools routinely discovered "unforeseen conditions" during the

construction process, which it claimed required consumers to pay additional monies to remedy.

Nationwide Pools would refuse to continue construction unless and until such additional charges

were paid.

74. Nationwide Pools consistently demanded progress payments that were not yet

owed, prior to completing all prior stages of construction, and in certain instances it unilaterally

changed the terms of the progress payments to obtain more monies up front, contrary to the

terms of consumers' pool contracts.

Material Misrepresentations and Omissions Regarding Subcontractors

75. Despite falsely advertising that it employed all pool construction workers "in-

house," Nationwide Pools used subcontractors for almost every phase of the construction

process.

76. Further, Chapter 713 of the Florida Statutes provides very specific procedures for

persons who furnish labor, services or materials for the purpose of improving real property.

77. Section 713.015, Florida Statutes, entitled "Mandatory provisions for direct

contracts," requires that any direct contract greater than $2,500 between an owner and a

contractor, related to improvements to real property, must contain a notice provision printed in

no less than 12-point, capitalized, boldfaced type on the front page of the contract or on a

separate page, signed by the owner and dated.

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78. Nationwide Pools unfairly and deceptively failed to include this mandatory notice

on its contracts, or otherwise provide consumers with any notice whatsoever about Florida's

construction lien laws, to the detriment ofthese consumers.

79. Moreover, Florida Statute § 713.06(2)(a) requires that, in order to perfect a lien

against real property, alllienors including materialmen and subcontractors must serve a notice on

the owner "setting forth the lienor's name and address, a description sufficient for identification

of the real property, and the nature of the services or materials furnished or to be furnished."

This is known as a "Notice to Owner."

80. When consumers inquired about Notices to Owner they received from

subcontractors, Nationwide Pools routinely advised them to ignore those notices as mere

"formalities."

81. This practice is unfair and deceptive conduct, as Notices to Owner are in place to

protect consumers and to inform them that failing to obtain releases may subject them to paying

twice for services rendered, and/or result in liens being placed against their properties for a

contractor's failure to pay its subcontractors.

82. Further, Nationwide Pools failed to obtain or assist with obtaining releases of lien

from its subcontractors and provide them to consumers, despite having received payment for the

subcontractors' services from the consumers in advance of services being rendered.

83. Section 713.345, Florida Statutes, requires that all persons who receive payment

for improving real property "must apply such portion of any payment to the payment of all

amounts then due and owing for services and labor which were performed on, or materials which

were furnished for, such improvement prior to receipt of the payment."

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84. As of this date, Nationwide Pools has failed to pay numerous subcontractors for

work performed, and those subcontractors have placed, and continue to place, liens on

consumers' homes.

85. The unfair and deceptive actions and omissions ofNationwide Pools in 1) failing

to disclose its use of subcontractors, 2) failing to include the mandatory construction lien law

language in its contracts, 3) misleading consumers, causing them to ignore statutory Notices to

Owner, 4) failing to obtain or assist with obtaining releases of lien for its customers, and 5)

failing to pay its subcontractors, has led numerous Florida consumers to pay twice for work

performed and/or encounter liens being placed on their properties.

86. Those consumers have not only paid twice for the same work (to Nationwide

Pools and, subsequently, directly to the subcontractors), or have in fact had their properties

liened, but those consumers have been left with unfinished, incomplete and unswimmable pools

that will now require additional monies to be paid to new contractors to complete the work.

Nationwide Pools' Wind-Down Misconduct and Fraudulent Transfer of Assets to National Construction Group

87. Nationwide Pools closed on May 24, 2013. On or around May 29, 2013, the

company officially informed its employees and the public that it was ceasing operations, leaving

dozens of consumers with unfinished pools and worthless payments made to a bankrupt entity.

88. However, the individual Defendants knew that Nationwide Pools was going

bankrupt and they were in the process of opening National Construction Group at least six weeks

prior to that date.

89. In fact, the individual Defendants, by and through Defendant Edwards, formally

registered National Construction Group with the State of Florida on April22, 2013, more than a

month before closing Nationwide Pools.

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90. On May 8, 2013, less than three weeks after forming National Construction Group

with Defendant Stuart, Defendant Edwards applied to sit for his pool contractor licensing exam.

91. As early as May 14, 2013, Nationwide Pools began requesting that its monthly

pool service/cleaning customers send their monthly payments to National Construction Group.

92. Throughout April and May 2013, Nationwide Pools, by and through Defendants

Stuart and Edwards, transferred large sums of monies collected from Nationwide Pools'

consumers to National Construction Group.

93. Among other transfers, Nationwide Pools wrote checks to Kings Highway (n/kla

National Construction Group) in April and May 2013 totaling $42,562.00. Upon information

and belief, Nationwide Pools also transferred additional monies to National Construction Group

in the form of cash and/or checks to employees.

94. Further, Nationwide Pools, by and through Defendants Stuart and Edwards,

transferred physical assets from Nationwide Pools to National Construction Group in the form of

pool equipment, office equipment and furniture, pickup trucks and commercial trucks and

trailers.

95. As a specific example, throughout April 2013, Nationwide Pools ordered and

stockpiled large quantities of pool equipment using funds obtained from consumers' deposits and

progress payments. However, Nationwide Pools did not utilize the equipment to complete

unfinished pools; rather, Defendant Edwards and two of his agents removed the stockpiled pool

equipment out the back door of Nationwide Pools' warehouse and transferred it to National

Construction Group. Defendant Stuart was aware that Edwards was removing the equipment and

had in fact given him a key to Nationwide Pools' office.

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96. Yet, despite these transfers and efforts to open the new company throughout April

and May 2013, Nationwide Pools unfairly and deceptively continued to take deposits from new

customers and demanded progress payments from existing customers, with false promises that

work would commence immediately or in the "next few days." In some cases, Nationwide Pools

demanded progress payments before such time as the consumer would be contractually obligated

to pay them. When customers who paid those monies complained about construction delays,

Nationwide Pools engaged in a series of lies and misrepresentations about "supply shortages"

and '·damaged items" in order to string them along.

97. Further compounding the injuries to Florida consumers during its last few weeks

of operation, Nationwide Pools purposely obtained new permits and commenced the excavation

of consumers' backyards in order to deceive those consumers into making large excavation

payments (3 0% of the total contract price), without any intention of initiating or completing the

next phases of construction. After providing thousands of dollars out-of-pocket to Nationwide

Pools, those consumers were left with nothing more than large holes in their yards, potentially

causing dangerous conditions.

98. For those consumers whose pools were already under construction, Nationwide

Pools manipulated and deceived them into making "brick and tile" (another 30% of the total

contract price) and other subsequent progress payments without any intention of completing

those phases.

99. Nationwide Pools, by and through its agents and specifically Defendants Stuart

and Mallia, contacted as many consumers as possible in the last few weeks of its operations and

demanded a variety of additional payments, all while engaging in a series of lies and

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manipulations regarding the status of the company and the status of the consumers' individual

projects, materials and supplies.

100. Further, despite its financial decline of which its officers and managers were

completely aware, and despite the formation of the new company, Nationwide Pools continued

to sell new pools with no intention of ever completing them. Nationwide Pools sold these pools

at a deep discount in order to increase volume and squeeze as much money as possible from

Florida consumers in the form of up-front deposits and commencement payments.

101. In the five weeks after forming National Construction Group, Nationwide Pools

earned income of at least $361,910.60, as evidenced by deposits to its bank accounts. Between

April1 and May 30,2013, Nationwide Pools earned income of at least $691,586.58.

102. Without regard for their existing customers, Defendants began marketing,

advertising and selling new pools under the name of National Construction Group immediately

after closing Nationwide Pools, and without a proper license.

103. In the very same week that Nationwide Pools closed its doors, its employees

began answering the phones under the name National Construction Group and directing monthly

pool service consumers to send their payments to the new company.

104. Defendant Edwards formally obtained his certified pool/spa contractor's license

on July 24, 2013, which license is registered to him individually and "d/b/a National

Construction Group."

105. Defendants immediately began using the new license to sell pools for National

Construction Group, essentially continuing Nationwide Pools' pool construction business under

anew name.

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1 06. As of the present date, Defendants are marketing and selling pool construction

and remodeling services to Florida consumers-including consumers who were already

victimized by Nationwide Pools- under the name ofNational Construction Group.

107. Defendants, through National Construction Group, are continuing to employ the

same unfair and deceptive trade practices as they previously did under the name of Nationwide

Pools, including using the same proposal forms, the same fictional warranties and rebates, the

same employees and the same salespeople.

108. Defendants are marketing, advertising and selling new pools through National

Construction Group without having completed construction work for dozens of paid Nationwide

Pools' consumers and without having refunded their monies.

1 09. Defendants have engaged in the above acts, knowing that their former customers

have lost thousands of dollars to Nationwide Pools, have had to pay subcontractors for the same

invoices that were already paid to Nationwide Pools, and have had liens placed on their homes

due to Nationwide Pools' failure to pay those subcontractors.

110. Defendants' actions are unfair and deceptive and have caused significant harm to

consumers in the State of Florida.

111. Defendants Stuart, Lynn Stuart and Mallia participated directly and indirectly

through their affiliates, agents, servants, employees, or other representatives, in the unfair and

deceptive acts and practices of Nationwide Pools as set forth above, controlled said acts and

practices, and/or had the authority to control them.

112. Defendants Stuart, Lynn Stuart and l'v1allia had actual knowledge or constructive

knowledge fairly implied on the basis of objective circumstances that said acts and omissions,

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and the acts and omissions of the employees, affiliates, agents, managers and/or representatives

ofNationwide Pools, were unfair or deceptive and/or prohibited by law.

113. Defendants Nationwide Pools, Stuart, Lynn Stuart and Mallia intentionally

participated in a scheme to defraud consumers of money by means of material unfair and

deceptive misrepresentations.

114. Such misrepresentations were m fact relied upon by reasonable persons and

consumers of Nationwide Pools, who suffered monetary damages as a result of such

misrepresentations.

115. Defendants Stuart, Lynn Stuart, Mallia and Edwards participated directly and

indirectly through their affiliates, agents, servants, employees, or other representatives, in the

unfair and deceptive acts and practices of National Construction Group as set forth above,

controlled said acts and practices, and/or had the authority to control them

116. Defendants Stuart, Lynn Stuart, Mallia and Edwards participated directly and

indirectly through their affiliates, agents, servants, employees, or other representatives, in the

fraudulent transfer of assets to National Construction Group as set forth above, controlled said

actions, and/or had the authority to control them.

COUNT I VIOLATIONS OF FLORIDA'S DECEPTIVE AND UNFAIR TRADE PRACTICES ACT

117. Plaintiff adopts, incorporates herein and re-alleges paragraphs 1 through 116 as if

fully set forth hereinafter.

118. Florida Statutes § 50 1.203(3) establishes that a violation of FDUTPA may be

based upon any of the following: (a) any rules promulgated pursuant to the Federal Trade

Commission Act; (b) the standards of unfairness and deception set forth and interpreted by the

Federal Trade Commission or the federal courts; or (c) any law, statute, rule, regulation, or

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ordinance which proscribes unfair methods of competition, or unfair, deceptive, or

unconscionable acts or practices.

119. Defendants Nationwide Pools, Stuart, Lynn Stuart and Mallia charged consumers

a credit card surcharge as defined by, and in violation of, § 501.0117, Florida Statutes.

120. The violations by Defendants of § 501.0117 constitute per se violations of

FDUTPA.

121. Defendants Nationwide Pools and Stuart failed to include mandatory construction

lien law notices in contracts with consumers as provided by, and in violation of, § 713.015,

Florida Statutes.

122. The violations by Defendants Nationwide Pools and Stuart of§ 713.015 constitute

per se violations ofFDUTPA.

123. Section 501.204(1), Fla. Stat., establishes that unfair or deceptive acts or practices

in the conduct of any trade or commerce are unlawful.

124. As described above, Defendants Nationwide Pools, Stuart, Lynn Stuart, Mallia,

Edwards and National Construction Group have engaged in deceptive and unfair acts and

practices likely to deceive a consumer acting reasonably in violation of the provisions of Chapter

501, Part II ofthe Florida Statutes.

125. As a result of Defendants' unfair and deceptive trade practices, Defendants have

caused damage to consumers in the State of Florida.

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COUNT II VIOLATION OF FLORIDA'S UNIFORM FRAUDULENT TRANSFER ACT

(FRAUDULENT TRANSFER)

126. Plaintiff adopts, incorporates herein and re-alleges paragraphs 1 through 116 as if

fully set forth hereinafter.

127. This is a claim to avoid and recover fraudulent transfers pursuant to Florida

Statutes § 726.1 05(1 )(a)-(b) and § 726.1 06(1) against Defendant National Construction Group.

128. Defendant National Construction Group received the above-described transfers of

assets from Defendant Nationwide Pools (the "Transfers").

129. At the time of the Transfers, Defendant Nationwide Pools was violating FDUTPA

through a series of unfair and deceptive trade practices.

130. Defendant Nationwide Pools, by and through Defendants Stuart and Edwards,

transferred its assets to an insider at National Construction Group, namely, Defendant Stuart.

Defendant Stuart has possession and/or control of the transferred assets through his position as

silent owner and/or manager ofNational Construction Group.

131. Defendants Nationwide Pools, Stuart and Edwards purposefully concealed and/or

attempted to conceal the Transfers from their creditors and Plaintiff.

132. Defendant Nationwide Pools transferred all or substantially all of its assets to

National Construction Group. Prior to the Transfers, Defendant Nationwide Pools had been both

sued and threatened with suit by numerous creditors.

133. Defendant Nationwide Pools had the actual intent to delay, hinder, and/or defraud

its creditors, including but not limited to its consumers, subcontractors, vendors, suppliers and

Plaintiff.

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134. Defendant Nationwide Pools was insolvent at the time of the fraudulent transfers

and/or became insolvent shortly after the Transfers were made.

135. Defendant National Construction Group was aware of Nationwide Pools'

insolvency and received the assets without good faith and/or without providing consideration or

any reasonably equivalent value.

136. As a direct and proximate result of the fraudulent transfers of assets to Defendant

National Construction Group, the remaining assets ofNationwide Pools are insufficient to pay its

liabilities.

137. Accordingly, the Transfers to National Construction Group are voidable pursuant

to Chapter 726, Florida Statutes.

WHEREFORE, the Attorney General requests that this Honorable Court enter Judgment

against the Defendants, jointly and severally, to:

A. DECLARE that the foregoing acts and practices are unfair, deceptive and/or

unconscionable in violation of FDUTP A.

B. Permanently ENJOIN Defendants Nationwide Pools, Stuart, Lynn Stuart, Mallia,

Edwards and National Construction Group, their officers, affiliates, agents, servants, employees,

attorneys and those persons in active concert or participation with them who receive actual notice

of this injunction from engaging in, rendering, or otherwise providing pool construction or

remodeling services to Florida consumers.

C. AWARD such equitable or other relief as is just and appropriate pursuant to

§ 501.207, Florida Statutes, including, but not limited to, disgorgement of ill gotten gains and

repatriation of assets necessary to satisfy any judgment.

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D. AWARD full restitution to all consumers who are shown to have been injured,

pursuant to§ 501.207, Florida Statutes.

E. ASSESS civil penalties in the amount of Ten Thousand Dollars ($1 0,000.00) as

prescribed by § 501.2075, Fla. Stat. or Fifteen Thousand Dollars ($15,000.00) for victimized

consumers provided by § 501.2077, Fla. Stat. for each act or practice found to be in violation of

Chapter 501, Part II, of the Florida Statutes.

F. A WARD attorneys' fees and costs pursuant to § 501.2075, Fla. Stat. or as

otherwise authorized by law.

G. SET ASIDE the Transfers to National Construction Group;

H. ENTER a money judgment against National Construction Group for the amount

of monies received, together with interest thereon from the date ofthe Transfers; and

I. GRANT such other relief as this Honorable Court deems just and proper.

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Dated this/0 day of October, 2013

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Respectfully Submitted,

PAMELA JO BONDI Attorney General of the State of Florida

~arah Shull# Assistant Attorney General Florida Bar No. 888451 Sarah.Shullman(q},myf1oridalegal.com Ronald Honick Assistant Attorney General Florida Bar No. 91157 Ronald.HonichU)myfloriqgL~gal.com

Office of the Attorney General Consumer Protection Division 1515 N. Flagler Drive Suite 900 West Palm Beach, Florida 33401 Telephone: (561) 837-5000 Facsimile: (561) 837-5109