Miami Beach condo property manager and maintenance worker arrested in alleged kickback and fraud scheme

Arrests tied to South Beach condominium finances

Miami-Dade prosecutors announced the arrests of two men accused of orchestrating a kickback-driven fraud scheme involving a Miami Beach condominium association and funds set aside for building-related work. Authorities identified the defendants as Francisco Obispo, 38, of Miramar, described as the property manager for the Euclid East Condominium, and Jose Hernandez (also reported as Jose Hernandez-Aguiar), 52, of North Bay Village, described as a maintenance employee tied to a maintenance company.

The condominium is located at 1545 Euclid Ave. on South Beach. Prosecutors described the alleged conduct as a “pay-to-play” arrangement that resulted in condominium money being improperly diverted through overbilling and kickbacks. Both men were booked on felony charges, including an organized scheme to defraud. Obispo also faces a charge related to receiving a kickback.

What investigators say triggered the case

Investigators said the suspected irregularities surfaced when association records showed payments and checks connected to major building work, including items described as related to the building’s 40-year recertification process. Prosecutors said some checks were for amounts that appeared substantially higher than expected for the stated purposes, and investigators concluded that the difference was taken “off the top” as part of the alleged scheme.

Authorities stated that the condominium association paid significant sums for maintenance work to a company linked to Hernandez while money flowed back to Obispo, which prosecutors say is consistent with a kickback structure in which inflated vendor charges conceal the return payment.

Timeline and amounts described by authorities

Investigators said the conduct occurred over roughly a yearlong period beginning in May 2024 and continuing into 2025. In public remarks, prosecutors stated that the alleged fraud involved hundreds of thousands of dollars. Law enforcement also described payments totaling $370,000 made for maintenance work tied to Hernandez’s company during the timeframe under review.

• Defendant 1: Francisco Obispo, 38, property manager (Miramar).

• Defendant 2: Jose Hernandez / Jose Hernandez-Aguiar, 52, maintenance employee (North Bay Village).

• Location: Euclid East Condominium, 1545 Euclid Ave., Miami Beach.

• Investigative focus: payments associated with building work and recertification-related spending.

Why recertification-related spending is a recurring pressure point

South Florida condominium associations often manage large, time-sensitive expenses tied to aging-building inspection and recertification obligations. These costs can involve engineering assessments, permits, and contractor work that move substantial sums through association accounts. Prosecutors described this environment as vulnerable to wrongdoing when oversight is weak, because inflated invoices can be difficult for unit owners to detect without detailed documentation and independent verification.

Both defendants are presumed innocent unless and until proven guilty in court.

Custody status

At the time of the announcement, Obispo was held on a $105,000 bond and Hernandez on a $15,000 bond, according to booking information shared by authorities.