What started as routine condo business in Miami Beach has turned into a criminal case involving hundreds of thousands of dollars, a condo manager, and a maintenance worker, according to prosecutors.
The Miami-Dade State Attorney's Office says the property manager of Euclid East Condominium and a maintenance worker were arrested Tuesday in what they describe as an alleged kickback scheme that funneled building funds to a company tied to one of the suspects. Prosecutors charged 38-year-old Francisco Obispo with 18 counts of receiving a kickback and one count of organized scheme to defraud. The maintenance worker, 52-year-old Jose Luis Hernandez-Aguiar, faces a charge of organized scheme to defraud. The case centers on Euclid East, a six-story condo at 1545 Euclid Avenue in the Flamingo-Lummus neighborhood.
What Prosecutors Say Happened
According to the arrest warrant, the whole thing began to unravel in June 2025 when a board member spotted irregularities in the association's books. Investigators then traced roughly $370,000 in payments made between May 2024 and May 2025 to a vendor owned by Hernandez.
One check for $25,000 was listed as payment for "40-year recertification permit processing," and another payment for $24,500 was labeled "40-year electrical permits." Investigators say that when they checked, they found no record of permits being pulled by Hernandez or his company. Prosecutors also allege that some of the money paid out by the condo association flowed back to Obispo and companies linked to him, creating a trail of transactions that led to the criminal charges, according to NBC6.
Why the 40-Year Recertification Is a Big Deal
Euclid East was due for its milestone 40-year recertification, a process that requires licensed engineers or architects to inspect a building's structural and electrical systems. Since the Surfside collapse, that once-routine chore has been under far tighter scrutiny at both the state and county level.
Miami-Dade's recertification system and the statewide "milestone inspection" rules adopted after Surfside are designed to push older condo buildings to get permits, complete major repairs, and prove they are safe. The result is a high-pressure environment where associations often face urgent deadlines and large repair bills, which can create fertile ground for questionable contracting and billing practices if oversight slips, according to the American Bar Association.
How Investigators Say the Money Moved
The arrest warrant outlines 18 transactions in which the condo association allegedly paid more than $260,000 to the vendor over the course of a year, while Obispo received over $95,000 from the same network of companies.
In one example cited by prosecutors, Euclid East paid $4,550 for "water intrusion" and balcony repairs. Two days later, according to investigators, the vendor cut a check for $1,800 to a company tied to Obispo. Prosecutors also point to a June 2025 email in which Obispo allegedly wrote that Hernandez was not a licensed contractor but was "highly experienced in the construction field," as reported by NBC6.
Legal Stakes for the Defendants
The organized scheme to defraud charge is brought under Florida's organized fraud statute, Fla. Stat. §817.034, which targets systematic efforts to obtain money or property by deception. Depending on the total value the state alleges was obtained, it can be filed as a first-, second-, or third-degree felony, with potential prison time and fines spelled out in state law. Both men are presumed innocent unless and until proven guilty, and the State Attorney's Office is expected to present the case in court as the investigation moves forward, according to the Florida Statutes.
