Condo Manager Arrested in Miami: Florida's Kickback Law Explained

On September 10, 2026, Miami-Dade County prosecutors arrested a Hialeah condo property manager and a construction company owner in a $185,000 kickback scheme that left a 21-building complex with stalled repairs and hundreds of unit owners holding the bill. The case is one of the most significant prosecutions yet under Florida's 2024 anti-kickback law, and it puts every Miami condo owner, buyer, and board member on notice: the Florida condo kickback law is being enforced, and the financial consequences of these schemes reach far beyond the two people who got arrested.

Here is what the law says, what the Venetian Gardens case reveals about how these schemes work, and what owners and buyers should be doing right now.

What Happened at Venetian Gardens

Carlos Jose Mejia, 51, a property manager at Venetian Gardens Country Club of Miami, a 21-building condo complex in Hialeah, was arrested September 10 and charged with 10 counts of violating the Florida Condominium Act and one count of organized scheme to defraud. Richard Thomas Murray, 62, who owned the construction company that held three active contracts at the complex, was charged with one count of organized scheme to defraud over $50,000.

According to investigators, Murray paid Mejia more than $185,000 through checks labeled as "loan agreements." Investigators found no evidence of repayment. The investigation was opened by the Miami-Dade State Attorney's Office following CBS News Miami's 2024 reporting on the building. By the time arrests were made, construction work had halted entirely because the contractor had run out of funds. The building's repairs remain incomplete. Mejia was granted a $40,000 bond at his Miami-Dade court appearance.

The Miami-Dade State Attorney, Katherine Fernandez Rundle, oversaw the prosecution. Both defendants are presumed innocent until proven guilty. The charges described above are allegations. The case is not isolated. Just two weeks earlier, in Operation Sundown, six people were arrested in a separate fraud ring that drained $5.8 million from 60 associations in Miami-Dade, primarily in Hialeah. Investigators in that case said they believed the true losses were "significantly greater" than what was confirmed.

What Florida's Anti-Kickback Law (HB 1021) Actually Says

Florida's condo kickback law, codified at Section 718.111(1)(a) of the Florida Statutes, was signed into law by Governor Ron DeSantis as part of House Bill 1021, which took effect July 1, 2024. It makes it a third-degree felony for any condo officer, director, or manager to knowingly solicit, offer to accept, or accept a kickback.

Florida Statute Section 718.103(20) defines a kickback as "any thing or service of value, for which consideration has not been provided, for any officer's, a director's, or a manager's own benefit or that of his or her immediate family, from any person proposing to provide goods or services to the association." The criminal penalty is up to five years in prison and a fine of up to $5,000. The law also subjects violators to civil penalties through the Division of Florida Condominiums, Timeshares, and Mobile Homes and potential removal from office.

HB 1021 was part of a broader overhaul of Florida condo governance that followed years of advocacy after the 2021 Surfside collapse. For a full breakdown of what the 2024 law changed for Miami condo sellers specifically, see Allioo's Florida Condo Law 2026 guide.

How a Kickback Scheme Drains Your Building's Finances

When a manager steers contracts to a preferred vendor who pays kickbacks, every unit owner in the building pays the price. The financial damage follows a predictable chain that begins long before most owners notice anything is wrong.

The association overpays for work, or pays for work that is never completed, or both. Reserve funds that were supposed to cover structural repairs get diverted or depleted. The building falls behind on maintenance. In the Venetian Gardens case, this chain ended with a construction contractor walking off the job because the funds had already been siphoned away.

When deferred repairs intersect with Florida's post-Surfside inspection requirements, the financial exposure compounds. Buildings that fail milestone inspections are required to begin repairs within a legally mandated timeline. In severe cases, where a Phase 2 engineer determines the structure is unsafe, local authorities can issue evacuation orders, but this outcome requires a separate unsafe-building determination, not just a failed inspection. Owners of units in buildings with unresolved structural issues, inadequate reserves, or stalled repairs are at high risk of being placed on Fannie Mae's restricted financing list, which effectively eliminates conventional mortgage buyers. Industry reports tracking Miami's post-Surfside condo market show that older buildings facing compliance challenges have seen value declines of 20 to 40 percent compared to pre-2024 law baselines (Sociedad Media, 2026).

Special assessments are the end of that chain. Miami condo owners are now receiving special assessments ranging from $10,000 to over $100,000 per unit for mandatory building repairs. When fraud has already depleted reserve funds, those bills arrive with no warning and no cushion. Miami-Dade County relaunched its Condominium Special Assessment Loan Program in June 2026 with $15 million in new funding, offering loans up to $50,000 per unit at 0% interest to qualifying households. The fact that the county is now in its third major funding round for this program reflects the scale of the problem. For a deeper look at how special assessments unfolded at one Miami building, see the $21 million assessment at 1060 Brickell.

Miami's HOA Fraud Pattern and What It Means for the Market

The Venetian Gardens arrest and Operation Sundown are not outliers. They reflect a documented pattern of fraud that law enforcement has found targeting older, volunteer-run boards. Operation Sundown investigators noted that many victim board members were "elderly, primarily Spanish-speaking volunteers" who had no idea funds were being stolen.

In a condo market that already carries 19 months of inventory, meaning it is firmly a buyer's market as of Q1 2026, fraud disclosures compound existing pressure on older buildings. Buyers who discover a building's management history includes fraud, stalled construction, or depleted reserves typically walk. That narrows the buyer pool and depresses pricing for every other unit owner in the complex.

For condo boards, the lesson is that fiduciary duty is not a formality. Under Florida law, condo board members generally owe a fiduciary duty to the association. Boards that become aware of potential fraud should consult a licensed Florida attorney about their obligations and options. For a full breakdown of what those duties cover and how boards are elected and removed, see What Does the Condo Board of Directors Do in Florida.

What Condo Owners and Buyers Should Do Now

The Venetian Gardens case is a due-diligence checklist in real time. Here is what owners and buyers should be verifying.

For current owners:

• Request and review the last 12 months of association meeting minutes. Vendor contract awards, change orders, and special assessments should all appear in these minutes. Unexplained or under-documented expenditures are a red flag.
• Ask your board for the most recent reserve fund balance and compare it to the Structural Integrity Reserve Study your association was required to complete by the end of 2025. If your building has not completed a Structural Integrity Reserve Study, that is a separate compliance problem that needs immediate attention.
• Verify that your building has completed its required milestone inspection if it is three stories or taller and 30 years or older. Inspect the Phase 1 report for any flagged items and ask the board for documentation of remediation.
• If you suspect financial mismanagement or kickbacks, reports can be filed with the Miami-Dade State Attorney's Office or the Florida Division of Condominiums, Timeshares, and Mobile Homes.

For buyers:

• Request the association's most recent financial statements and the reserve fund balance before making an offer. Under Florida Statute §718.503, resale condo buyers have 3 days (excluding weekends and legal holidays) to cancel a signed contract. Sellers are required to provide association documents at or before contract execution. The interaction between document delivery timing and cancellation rights can be nuanced, so consult a licensed Florida real estate attorney for specifics.
• Ask about any pending or recently completed vendor contracts, especially for major repairs. If construction work is stalled or a contractor has been terminated, ask why.
• Check whether the building is on Fannie Mae's restricted list before relying on conventional financing. A building with recent fraud disclosures, inadequate reserves, or unresolved structural issues is likely to fail lender review.

FAQ: Florida Condo Kickback Law

What is a kickback under Florida condo law?
Under Florida Statute Section 718.103(20), a kickback is any thing or service of value received by a condo officer, director, or manager from someone proposing to provide goods or services to the association, where no fair consideration was paid in return. Cash payments and gifts clearly fall under this definition. Whether payments disguised as loans constitute a kickback will depend on the specific facts and circumstances of each case.

Is accepting a kickback a crime in Florida?
Yes. Since July 1, 2024, under HB 1021 and Section 718.111(1)(a), accepting, soliciting, or offering a kickback as a condo officer, director, or manager is a third-degree felony in Florida. The penalty is up to five years in prison and up to a $5,000 fine.

What should I do if I suspect my condo manager is taking kickbacks?
You can file a complaint with the Florida Division of Condominiums, Timeshares, and Mobile Homes, or contact the Miami-Dade State Attorney's Office directly. You can also request a special meeting of the board to demand a financial review or hire an independent CPA to audit the association's books. Board members who suspect fraud should consult a licensed Florida attorney about their obligations and options.

How do kickback schemes affect my condo's value?
Kickback schemes deplete reserve funds and defer building maintenance, which can trigger failed milestone inspections, special assessments, and lender blacklisting. Industry reports tracking Miami's post-Surfside condo market show that older buildings with compliance problems and inadequate reserves have seen value declines of 20 to 40 percent compared to pre-2024 law baselines.

Can a buyer get financing on a condo building with a fraud history?
It depends on the current state of the building's finances and compliance record. Lenders assess reserve adequacy, pending litigation, and structural compliance. A building that has experienced fraud-related depletion of reserves, has stalled repairs, or carries pending special assessments may not qualify for conventional Fannie Mae financing, which limits buyers to cash or portfolio loans.

Florida real estate laws are subject to change. This article reflects laws as of September 2026. This content is for informational purposes only and does not constitute legal, financial, or real estate advice. Consult a licensed Florida real estate attorney for guidance specific to your situation.

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Anthony Johnson is a Miami Real Estate Agent, licensed for over 10 years and specializing in Downtown Miami and South Beach condos. He is the founder of Allioo, a platform enhancing the experience for Miami condo sellers and landlords, and of Allioo Studio, which builds real estate tools and website templates for real estate agents.