SACRAMENTO – The Contractors State License Board (CSLB) and Sacramento County District
Attorney’s Office investigation of Aquarius/Imperial Pools of Sacramento (License #267176) has
resulted in the arrest today of Gregory Wolfe and his wife Teresa Wolfe. The two face 11 felony
charges of mishandling company finances, defrauding consumers and subcontractors and willfully filing
false income tax returns. Both are in Sacramento County Jail, each with $120,000 bail.
Aquarius Pools abruptly halted operations in August 2006, leaving more than 60 families from
Marysville to Elk Grove with partially completed swimming pools. CSLB received initial
complaints/inquires from homeowners and subcontractors who filed more than 60 mechanics liens
against the homeowners for unpaid work.
The Wolfes were managing the company and its day-to-day operations when it became
financially insolvent and shut its doors. Owners Kevin Towle and Richard Carnation were in the
process of selling the company to Greg Wolfe. Mr. Wolfe was listed as Responsible Managing Officer
(RMO), Chief Executive Officer (CEO) and President on the Aquarius license. The company filed for
bankruptcy in late 2007.
The Wolfes are charged with using the company’s assets for personal gain. A forensic
accountant conducted an analysis of various bank accounts and determined that between January
2004 and August 2006, the couple diverted Aquarius Pools assets through fraudulent payroll and
business expenses, purchases of personal items, vacations, vehicles and personal expenses.
Amongst the items the Wolfes purchased were a timeshare in Cancun, Mexico, multiple vacations and
Sacramento Kings season tickets. The accountant also found that they used Aquarius money to pay
various credit card bills, to put three children on Aquarius’ payroll, to pay rent and/or security deposits
for two sons, to make payments on one son’s vehicle, and for home improvement items, including new
garage cabinets.
The analysis also showed that some of the money diverted by the Wolfes was from customers
who were left without completed jobs.
