Duo Accused of South Beach Condo Kickback Scheme

Property manager and maintenance employee allegedly stole hundreds of thousands from Miami Beach condo building

Published on Feb. 19, 2026

Got story updates? Submit your updates here. ›

The Miami-Dade State Attorney's Office has accused a property manager and a maintenance employee of running a kickback scheme that stole hundreds of thousands of dollars from the Euclid East Condominium in Miami Beach. The two men, Francisco Obispo and Jose Hernandez, allegedly inflated invoices and took the extra money for themselves.

Why it matters

This case highlights the issue of corruption and fraud within condo associations, where residents' money can be siphoned off by unscrupulous managers and employees. It raises concerns about oversight and accountability in the condo industry, and the need for stronger protections for condo owners.

The details

Investigators found that Obispo, the 38-year-old property manager from Miramar, and Hernandez, the 52-year-old maintenance employee from North Bay Village, worked together to steal money from the Euclid East Condominium. They would inflate invoices for things like the building's 40-year recertification, and then pocket the extra funds.

  • The alleged kickback scheme took place over the last couple of years.

The players

Francisco Obispo

A 38-year-old property manager from Miramar who is accused of participating in the kickback scheme.

Jose Hernandez

A 52-year-old maintenance employee from North Bay Village who is accused of participating in the kickback scheme.

Katherine Fernandez Rundle

The Miami-Dade State Attorney who announced the charges against Obispo and Hernandez.

Euclid East Condominium

The Miami Beach condo building that was allegedly targeted by the kickback scheme.

Got photos? Submit your photos here. ›

What they’re saying

“A property manager taking kickbacks ― it's bad for condo owners because it secretly flips a manager's role and his motives and incentives.”

— Katherine Fernandez Rundle, Miami-Dade State Attorney (local10.com)

“Kickbacks usually come from vendors who overcharge to hide the bribe. Owners end up paying more for repairs, maintenance or services than they should be.”

— Katherine Fernandez Rundle, Miami-Dade State Attorney (local10.com)

What’s next

The judge will determine whether to grant bail for Francisco Obispo and Jose Hernandez at their upcoming court hearings.

The takeaway

This case highlights the need for greater oversight and accountability in condo associations to prevent fraud and protect residents' investments. Condo owners should be vigilant about monitoring their building's finances and reporting any suspicious activity.