Miami Beach Condo Property Owner and Maintenance Worker Accused of Kickback Scheme

Investigators say the men diverted hundreds of thousands of dollars meant for urgent building renovations.

Published on Feb. 20, 2026

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Two men, the property manager Francisco Obispo and maintenance worker Jose Hernandez Aguiar, have been arrested and accused of engaging in a kickback scheme to defraud owners of a Miami Beach condo building. Prosecutors say the men diverted around $370,000 that was meant for the building's 40-year recertification and urgent renovations, with Obispo allegedly receiving approximately $95,000 in the process.

Why it matters

This case highlights the importance of financial oversight and transparency in condo associations, where mismanagement and fraud can have serious consequences for residents. The alleged actions of the two men not only deprived the building of much-needed repairs, but also raise concerns about the integrity of the condo board and its ability to protect the interests of unit owners.

The details

Investigators say Obispo, the condo's property manager, hired Hernandez's company, JLB Repair LLC, to handle the building's recertification. Hernandez was previously employed by the former property management company as the building's general maintenance worker, but was then placed on the building's direct payroll when Obispo took over. A board member discovered discrepancies in the accounting and financial records, and it was also discovered that neither Hernandez nor his company is registered as licensed contractors. Investigators say each time Hernandez received payment for work on the building, Obispo received money shortly afterward.

  • In 2024, Hernandez was placed on the building's direct payroll when Obispo took over as property manager.
  • In 2026, a board member discovered discrepancies in the accounting and financial records and reported the issues to investigators.

The players

Francisco Obispo

The 37-year-old property manager of the Euclid East Condos in Miami Beach, who is accused of engaging in a kickback scheme with a maintenance worker.

Jose Hernandez Aguiar

The maintenance worker at the Euclid East Condos, who is accused of participating in a kickback scheme with the property manager.

Euclid East Condos

The Miami Beach condo building where the alleged kickback scheme took place.

JLB Repair LLC

The maintenance company owned by Jose Hernandez Aguiar, which was hired to handle the building's recertification.

Condo Board Member

A board member who discovered discrepancies in the condo's financial records and reported the issues to investigators, leading to the arrests of Obispo and Hernandez.

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What’s next

The suspects are expected to appear in bond court on Wednesday, where a judge will decide whether to grant them bail.

The takeaway

This case underscores the need for condo associations to have robust financial controls and oversight mechanisms in place to prevent fraud and ensure that funds are used for their intended purposes, such as necessary building repairs and maintenance.