According to investigators, the case centers on the Euclid East Condos in Miami Beach, where property manager Francisco Obispo and maintenance worker Jose Hernandez Aguiar are accused of orchestrating a kickback scheme tied to the building’s required 40-year recertification (1), a process meant to ensure structural safety.
Alleged kickback scheme tied to condo safety funds
Authorities allege that the homeowners association paid roughly $370,000 to Hernandez’s company, JLB Repair LLC, for work connected to the recertification. Investigators say Hernandez was not a licensed contractor, and that after payments were issued, money allegedly flowed back to Obispo. Prosecutors claim Obispo received about $95,000 through multiple transactions.
“A property manager taking kickbacks ― it’s bad for condo owners because it secretly flips a manager’s role and his motives and incentives," Miami-Dade State Attorney Katherine Fernandez Rundle told Local 10 News in Miami (2).
The alleged scheme came to light after a board member noticed discrepancies in financial records and reported concerns to investigators. That board member was later removed after Obispo reportedly told others he posed a safety risk, according to investigators.
Both men have been arrested and face charges including an organized scheme to defraud, with Obispo also accused of receiving kickbacks.
Why condo fraud can hit owners hard
For condo owners, stories like this land close to home because they rely heavily on property managers, boards and vendors to manage large sums of money. That money can include everything from maintenance budgets to special assessments.
In condo-heavy Florida, the stakes are especially high. Following stricter building safety laws enacted after high-profile structural failures, many condo associations are facing steep costs for inspections, repairs and reserve funding. Monthly fees and special assessments have climbed sharply in some communities.
When funds are misused, the consequences can ripple through the building. Residents may face delayed repairs, emergency assessments, legal fees or higher insurance costs. In worst-case scenarios, critical safety work can be postponed, increasing risks and financial exposure.
