Nearly $2.3 Million Allegedly Stolen From Florida Associations So Far In 2024
In this latest issue of the Miami Condo Market Intelligence Report™, we examine alleged financial crimes at Florida condo and homeowners associations.
Volume 2024, Issue 36 (Subscribe here)
This week’s Miami Condo Market Intelligence Report™ newsletter examines alleged financial crimes by board members and employees of Florida condo and homeowners associations in 2024.
The catalyst for our focus was this week’s arrest of a condo president in the Miami suburb of Aventura for an alleged $1.5 million theft.
Gregori Arzumanov - the quantum physicist-trained president of the Turnberry On The Green condo tower in Northeast Miami-Dade County - was arrested on Oct. 1, 2024, on a number of felony charges, including racketeering, grand theft and money laundering, according to a Miami-Dade County arrest warrant.
Police alleged in the arrest warrant that Arzumanov and his companies maneuvered to gain control of the condo association by becoming the board president, property manager and chief building engineer in order to use the community’s estimated $3.3 million operating budget to “enrich” himself and his family.
As part of the arrest warrant, police alleged Arzumanov stole a one-bedroom condo with 870 square feet on the 18th floor of the 28-story highrise located across the street from the posh Aventura Mall, according to a report.
Based on current resale prices, the unit in question - which had a value of nearly $232,000 at the time of the alleged theft in 2020 - has a current estimated market value of nearly $385,000.
The unit is currently leased out for $1,800 per month, according to the arrest warrant.
To get a better handle on how common financial crimes are at Florida’s nearly 28,250 condo associations with more than 1.2 million units, we researched press reports for arrests tied to Florida condo and homeowners associations.
Our research shows that eight people have been arrested in Florida this year for allegedly stealing nearly $2.3 million - including the Turnberry On The Green case - from condo and homeowners associations, according to press reports.
The Turnberry On The Green case was the largest case this year followed by an alleged $437,000 theft at the Ashford Park Homeowners Association in Seminole County and a $216,000 theft at the Regatta Beach Club condo association in Pinellas County, according to press reports.
It is worth noting, a husband and wife from American Property Management Services was indicted by a federal grand jury on 17 counts in March 2024 related to a lawsuit brought by 35 associations in Collier and Lee counties that used the couple’s property management company, according to the Naples Daily News.
The lawsuit against American Property Management Services alleged the husband-and-wife team stole more than $10 million from the various associations located in Southwest Florida between 2018 and 2021, according to WinkNews.com.
In the wake of the the Surfside condo collapse, the state legislature has made condo crimes a priority in the revised Florida Condo Law.
The revised law is aimed at promoting transparency and stomping out corruption at condo associations in Florida, according to a recent report.
Board members, property managers and management companies, alike, now face a wide range of sanctions ranging from criminal charges to fines, license revocation to removal from office for offenses such as accepting or soliciting kickbacks, not disclosing conflicts of interest and refusing to share information with unit owners.
The new laws are part of the 2024 revisions adopted by the Florida Legislature in March, signed by Florida Gov. Ron DeSantis (R) in June and went into effect in July 2024.
As part of the changes, Florida is hiring the “equivalent” of 65 fulltime regulators to “implement” the numerous changes, according to a recent report.
The state has allocated more than $7.4 million to jumpstart the enforcement effort that will be overseen by the Division of Florida Condominiums, Timeshares and Mobile Homes.
Besides the nearly $3.2 million budgeted for hiring the new regulators, the Division has also been directed to use some of the money to review its condo association application process, method for maintaining records and website functionality.
In the aftermath of the June 24, 2021, collapse of the Champlain Towers South in the town of Surfside on the barrier island of Miami-Dade County, everyone from residents to building inspectors, politicians to bankers understand better than ever the importance of ensuring that no Florida condo building ever collapses again.
Nearly 100 people died and a $1 billion settlement was reached with the families of the victims.
A federal investigation is currently underway but the preliminary reports suggest a flawed design coupled with a lack of upkeep by the condominium’s association contributed to the disaster.
The Florida Legislature has taken a number of steps - prompted by insurance companies threatening to withdraw coverage in the state - to ensure that nothing like this ever happens again.
Up until now, the state’s measures were being implemented slowly but that all changes in 2025 when many of the measures take effect.
Beginning in January, condo associations in Florida will be required to start collecting money from unit owners to place into reserve accounts that will be used exclusively to fix, maintain and improve the structural integrity of residential buildings that are at least three-stories tall.
People are dubbing this moment as the 2025 Florida Condo Association Financial Cliff as it is expected to result in significantly higher costs for unit owners. News reports are already chronicling condo owners selling their units at deep discounts ahead of the 2025 deadline.
It is against this backdrop that we explored the claims by some industry watchers that Florida condo associations are “criminal enterprises.”
Our first story this week focuses on the arrest of the condo president for using his power to allegedly steal from the unit owners of the Turnberry On The Green tower.
In the second story, we did a case study of how a condo president was able to allegedly steal a condo unit with no one knowing.
For the third story, we highlight the fact that Florida is 90 days away from the start of the 2025 Condo Association Financial Cliff.
It is a lot of information but we are confident our reports will assist you to better understand current market conditions in South Florida.
It is worth noting that we are sharing a portion of our research for free with subscribers to our newsletter and readers of CondoVultures.com.
If you want access to all of our published information and charts, we would encourage you to join the newly launched Miami Condo Market Investing Club™.
The objective of the Club is to create a community that shares realtime, actionable information on the latest real estate trends, opportunities and service providers in South Florida.
The Club is ideally suited for Do-It-Yourself (DIY) condo buyers who can rely on our latest statistics, expert opinions and access to consulting services.
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As a reminder, we are always available for consulting, expert witness work and buyside brokerage services just as we have been since 2006.
If you are seeking information on condo resales in South Florida, please visit CondoVulturesRealty.com or call the office at 305.865.5859.
— Peter Zalewski, Founder of the Miami Condo Market Investing Club™
Story 1
Condo Crime: Board President Busted For Allegedly Stealing $1.5 Million From Association
Is the arrest of board member Gregori Arzumanov of the Turnberry On The Green tower in Aventura a harbinger of things to come under the revised Florida Condo Law?
Story 2
Case Study: How A Florida Condo President Allegedly Stole A $232,000 Unit
The arrest of board member Gregori Arzumanov of the Turnberry On The Green tower in Aventura provides a step-by-step description of how, police alleged, a condo unit was stolen from the association.
Story 3
Florida 90 Days Out From 2025 Condo Association Financial Cliff
In anticipation of the looming deadline, expert Peter Zalewski of the Miami Condo Market Investing Club™ will host a 75-minute online meeting on Wednesday, Oct. 9, 2024.
This information is believed to be accurate and complete but cannot be guaranteed or warranted.
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