The president of a luxury condo association in Aventura has been arrested for allegedly embezzling over $1.5 million from the association over a period of several years, authorities said.
Gregori Arzumanov, the president of the Turnberry On the Green Condominiums, a luxury high-rise overlooking the exclusive Turnberry Isle Country Club and across the street from Aventura Mall, was arrested Tuesday, records showed.
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Miami-Dade jail records showed the 62-year-old Arzumanov was booked Tuesday morning on charges including racketeering, organized fraud, money laundering, grand theft, and fraudulent use of a credit card.
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According to the association's website, Arzumanov has lived at Turnberry on the Green since 2004 and was elected board president in 2008.
Video posted on X Tuesday appeared to show Arzumanov being led out of the condo building's lobby in handcuffs.
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NBC6 reached out to an attorney who represented Arzumanov in a civil case but the attorney said he isn't representing him in this case.
At a news conference Tuesday afternoon, Miami-Dade State Attorney Katherine Fernandez Rundle said Arzumanov embezzled over $1.5 million from the association dating back to February 2017.
"Although everything appears wonderful at the Turnberry on the Green Condominiums, it turns out there was trouble in paradise," Fernandez Rundle said.
According to an arrest warrant, the 28-story, 378-unit condo building's association had an annual budget of over $3 million that was paid by monthly fees from homeowners.
Arzumanov had stepped down as association president in January 2022 and was hired "at his insisting" to be the building's chief engineer, with an $80,000 yearly salary, the warrant said.
Investigators found Arzumanov has a degree in quantum physics but no engineering background and no state-issued licensing for engineering, the warrant said.
Arzumanov resumed the position of association president in December 2022, but by taking over multiple top-level positions including property manager and chief engineer he had consolidated power, the warrant said.
"This combination of positions allowed the defendant to select contractors, make purchases, and seek reimbursement for non¬association expenses with no oversight or checks and balances," the warrant said. "The defendant strategically over time placed himself in these upper management positions as a means to avoid oversight and maintain unfiltered access to the association’s finances.
The warrant also said Arzumanov used "aggressive tactics" to place residents and employees in fear.
"These aggressive tactics which included, excessive fines, termination of employment, and lawsuits were all designed to keep everyone 'in line' and limit any challenges to his schemes," the warrant said. "These aggressive fear tactics paired with the remaining board members obvious abandonment of their fiduciary duties, allowed the defendant to operate his schemes and embezzle the [association] funds unabated."
Arzumanov was able to embezzle association funds through various entities along with credit card fraud, the warrant said.
One of those entities was a security business he formed in 2017, which he allegedly told board members was a not-for-profit company owned by the association and would save them money, the warrant said.
Arzumanov paid the thousands of dollars for the company's licensing and insurance liability with funds from the association, then terminated the association's security contract with another company and switched to his own company, increasing the monthly charges by over $5,700, the warrant said.
In 2018, the first full year under his security company, the association paid the company $384,000, well over the annual budget of $335,000 and an increase of $99,000 over the previous company, the warrant said.
The security company employed between 6 and 8 employees but didn't have enough employees to provide two employees per shift 24 hours a day, so he would hire building residents and others to cover shifts, the warrant said.
Fernandez Rundle said Arzumanov profited over $1 million through the security company alone.
Arzumanov also arranged to have the association pay another business he was the CEO of a $10,000 quarterly consulting fee beginning in September 2018, the warrant said.
He stopped that in 2019 but switched to another scheme in which he billed the association $10,000 each quarter for "aquatic facilities services," which resulted in his company being paid $40,000 by the association, the warrant said.
Arzumanov's company didn't perform "aquatic facilities services" and a separate company was paid for pool maintenance, the warrant said.
In another scheme linked to money laundering, Arzumanov had rent payments being made out to his deceased mother, despite no building units being in her name, Fernandez Rundle said.
Arzumanov also allegedly spent association funds on items for himself, including everything from trips to a buffet to artwork he placed in his condo unit and in the building valued at around $30,000, Fernandez Rundle said.
Fernandez Rundle said he was able to pull off the schemes because many residents were absentee owners.
"There are some that use the association as a cash cow, they use it to steal, to benefit themselves, Fernandez Rundle said. "That's why we want everyone to be very alert be careful what you sign, ask questions."
Aventura Police Chief Michael Bentolila said the crimes were brought to light by multiple residents. He apologized that the four-year investigation took so long.
"This was an intricate fraud case where he took over not just the building but all, everything going on around the building, every asset used in and around the building, it was a complete takeover, I've never seen anything like this in my entire career," Bentolila said.
He also said Arzumanov was likely not the only arrest that would be made in the case, and had a message for anyone who may have collaborated with him.
"You have a window of opportunity to reach out to our detectives or the state attorney's office to work with us," Bentolila said. "But that is a very small window, if you don't take it we will be at your front door and we will be arresting you as well."
