LOUISVILLE, Ky. (WDRB) -- Cory Dahlkamp recently moved to her new home in Bullitt County. It took months to build the house, and Dahlkamp wanted a space for her family to hang out and enjoy the outdoors.
The house was designed around a pool, she said, so she called Davenport Extreme Pools & Spas.
"Our project was going to be $96,000, I believe," Dahlkamp said. "We did pay her the $46,000 and received nothing."
She said her contract for the pool was filed in 2021, and there still isn't an account of where the money went or what it was spent on.
"We spoke with them on the phone a lot," Dahlkamp said of the period before they paid the $46,000 deposit. "We had a couple references and we even went to their office. It looked like like a reputable business."
Earlier this year, more than 20 families reported the same complaint about Davenport: They paid tens of thousands of dollars to the company for a pool, work was never done and the company quit responding to its customers.
The company since has filed for federal bankruptcy protection in an attempt to reorganize the company, disconnected its publicly available phone number and removed its Facebook page. Multiple lawsuits have been filed against Davenport and owner Tracy Davenport, alleging the company stopped responding after no work was done and attempting to get their deposits back.
Davenport Extreme Pools & Spas (WDRB Photo)
“The fraud here is pretty massive,” said attorney Steve Pence, a former Kentucky lieutenant governor who is representing the families. “Dozens of people have called me about representing them. The scope of this scheme is far broader than you can imagine.”
Since then, owner Tracy Davenport has recently been charged with two counts of theft in Floyd County and theft and fraud in Clark County. And other local police agencies are looking into Davenport's practices.
For the Floyd County case, Jennifer Didat told investigators she was defrauded $35,750 from Davenport after signing a contract in 2021. Jessica Lyczac, from Georgetown, Indiana, said she wrote a check for $96,210, and no work has started.
Larry Wilder, who's representing Davenport in the various lawsuits, disputed the charges and maintained the company's intention to make sure customers get their pools.
"If it was a straight up 'screw the world, take the money and run,' they would have went into bankruptcy court to dissolve versus reorganize," Wilder said. "So, I think that's a message."
Court documents show nearly 60 families signed contracts with Davenport from in 2021 and 2022. The total cost for all of the pools covered in those contracts came to more than $5.4 million. The documents say customers have paid over $3.6 million so far, a figure that includes the amount people paid for their deposits.
Wilder again maintained all the money is accounted for.
"I believe the audit has demonstrated where that money is," Wilder said. "I would suggest — if it was not spent in an appropriate manner — you wouldn't be talking to some lawyer in Jeffersonville for state cases in Indiana. You'd be talking to some smart lawyer in Louisville who would be talking to you about United States Federal District Court."
A document filed in bankruptcy court at the end of March shows the company's plan for reorganization. It lists all the company's assets, like construction equipment and vehicles, with their value, as well as the company's debt.
The Kentucky Attorney General's Office said it's received seven consumer complaints related to the case and is reviewing them to determine next steps.
One lawsuit filed in March on behalf of 14 families says Davenport "diverted the company's funds to make payments on personal loans for multiple vehicles purchased in her own name, including a 2017 Jeep Wrangler and a 2019 Dodge Ram 2500. It alleges Davenport "used customer funds to pay for lavish vacations to Las Vegas, personal cosmetic surgeries, a six figure recreational vehicle and the purchase of an expensive pleasure cruising lake boat."
Corey Dahlkamp has now hired another company who is currently putting in a pool while she continues paying on the pool she also didn't get. (WDRB Photo)
It goes on to say an excavation company was formed in her son's name" that then filed for bankruptcy.
"Davenport diverted customer money to fund the operations and management of other companies, including her son's custom car performance shop, which operated out of the same building as her company," the lawsuit says.
Wilder said the COVID-19 pandemic and supply chain issues are the reason why people don't have their pools yet.
"They're alleging they paid for a pool that hasn't been built," he said. "We know what happened in that timeframe with business."
Wilder said he's trying to get Davenport's criminal cases dismissed.
"This is an individual that is being charged with crimes," he said. "It was a corporation that received the funds. She's not the only stockholder, and when you look at the allegations of the criminal cases ... 66% were not given to her. They were given to a salesperson, an agent in the company, and checks were not made to her and were made to the corporation."
He said there's an "effort that's ongoing that appears to be successful" where people are intervening to finance the balance of the contracts and finish the pools.
Dahlkamp has now hired another company who is currently putting in a pool while she continues paying on the pool she also didn't get.
"I don't know any family that would be willing to give another dime to Davenport Extreme Pools," she said.
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