Kissimmee Mayor Jackie Espinosa was arrested Wednesday on charges of grand theft and organized scheme to defraud over allegations that she used a city-funded COVID-19 relief program to benefit businesses owned by her family. She remains mayor because the city has not suspended her from office.
Espinosa, 58, was arrested after a joint investigation by the Florida Department of Financial Services (DFS) and the Florida Department of Law Enforcement into the city’s Business Boost 2.0 grant program, according to officials.
State investigators allege that Espinosa used her position to influence the distribution of grant money and that 3 businesses owned or controlled by her or immediate family members received a combined $50,000. The businesses included a dance studio, a diner and a real estate company, according to the arrest warrant.
An audit also found that 4 other businesses operating in properties owned or managed by members of Espinosa’s family received another $40,000, bringing the total grant money identified by investigators to $90,000 across 7 businesses, according to the DFS.
Authorities allege Espinosa helped create and expand the grant program before applying for funds for family businesses. Attorney General James Uthmeier said she was warned that accepting the money could create a conflict of interest but did not return it.
Espinosa faces a second-degree felony charge of grand theft involving $20,000 or more but less than $100,000, as well as a first-degree felony charge of organized scheme to defraud involving $50,000 or more.
Her attorney, Migdalia Perez, said Espinosa maintains her innocence and plans to challenge the charges.
“This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money,” Perez said. She argued that an alleged ethics violation does not automatically constitute a crime and that prosecutors must prove criminal intent.
Espinosa has served as Kissimmee’s mayor since November 2024, and her term is scheduled to end in 2028. Under the city’s charter, the vice mayor can step in if the mayor is suspended, but that process had not been invoked as of Wednesday afternoon, according to WFTV.
The investigation began after a routine audit of local governments’ use of COVID-19 relief funds. The Florida Department of Financial Services and the Florida Department of Law Enforcement conducted the investigation, with the state attorney general’s office filing the criminal charges.
If convicted as charged, Espinosa could face up to 30 years in prison, according to officials.