Kissimmee Mayor Jackie Espinosa Arrested on Theft and Fraud Charges Over $50,000 in Family Business Grants

Kissimmee Mayor Jackie Espinosa Arrested on Theft and Fraud Charges Over $50,000 in Business Grants

Florida investigators allege the mayor helped shape a pandemic recovery program before obtaining grants for family businesses. Espinosa has pleaded not guilty, and her attorney says the state is attempting to turn an ethics dispute into a criminal case.

KISSIMMEE, Fla. — Kissimmee Mayor Jackie Espinosa was arrested Wednesday, October 21, on felony theft and fraud charges stemming from allegations that she improperly obtained $50,000 in city administered business grants for companies connected to herself and her family.

Florida Attorney General James Uthmeier announced the arrest alongside Chief Financial Officer Blaise Ingoglia and Florida Department of Law Enforcement Commissioner Larry Keefe. Investigators allege Espinosa used her official position to influence the Business Boost 2.0 program before applying for assistance through three family-connected businesses.

Espinosa faces one count of grand theft involving $20,000 to $100,000, a second degree felony, and one count of organized scheme to defraud involving $50,000 or more, a first degree felony. Ingoglia said she could face up to 30 years in prison. That represents potential punishment, not a sentence or an established outcome. Her attorney, Migdalia Perez, filed a written not guilty plea Wednesday. Espinosa denies acting with criminal intent and is presumed innocent unless proven guilty.

State Alleges Mayor Helped Shape Program Before Applying

Business Boost 2.0 used federal American Rescue Plan Act funding to provide assistance to eligible small businesses recovering from the COVID-19 pandemic. Prosecutors allege Espinosa advocated for and voted on the program’s creation and expansion, then sought funding for businesses she and immediate family members owned or controlled.

According to the state’s account, the family submitted applications when the program opened in September 2025. Investigators allege Espinosa sought to simplify the process and reduce oversight in ways that enabled the businesses to obtain money to which they were not entitled. The case therefore extends beyond whether the businesses received assistance. Prosecutors contend the mayor’s involvement in shaping the program, her financial interests and her subsequent conduct demonstrate an intentional scheme. The defense disputes that characterization.

Three Businesses Received a Combined $50,000

According to WFTV’s reporting on the arrest affidavit, Adanse LLC received $20,000; Kissimmee Diner Inc., which operates as Matador Tacos & Tapas, received $15,000; and The Real Estate Gallery LLC received $15,000. Investigators said the applications were approved November 4, 2025, and the money was deposited November 7. The state alleges those payments benefited businesses connected to the mayor and her family.

At the news conference, Ingoglia also said another $40,000 went to tenant businesses operating in properties owned or managed by the Espinosa family. He described seven businesses at family connected properties receiving a combined $90,000.

Those figures require a distinction: the $50,000 represents grants to the family connected businesses at the center of the prosecution’s allegations. The additional $40,000 went to tenants. The state’s description of that broader financial connection does not establish that Espinosa personally received or stole the entire $90,000.

City Employees Raised Questions About Conflicts

The arrest affidavit, as described by local reporting, identifies concerns raised inside City Hall before the grants were approved. City employee Yolanda Claudio reportedly stopped reviewing the applications and asked Economic Development Director David Rodriguez to obtain guidance from the city attorney about a potential conflict.

Rodriguez told investigators he approved the applications because the program’s guidelines did not specifically exclude the mayor’s businesses. According to the affidavit, he did not consult the city attorney about the issue. Investigators further allege the city attorney notified Espinosa on December 5, 2025, that accepting the grants created a prohibited conflict of interest and advised her to return the money. The state contends she declined to do so. That alleged refusal forms part of the prosecution’s account; it has not been established through a criminal trial.

Defense Says Publicly Administered Grants Were Not a Theft Scheme

Perez rejected the state’s characterization of the payments and emphasized that city employees administered the program.

“This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money.”

The defense argues that an alleged ethics violation is distinct from a criminal offense and that prosecutors must prove criminal intent and every element of the charges beyond a reasonable doubt. The program’s written guidelines did not expressly prohibit elected officials from applying at the time, according to prior reporting. That fact does not independently resolve whether Espinosa complied with other applicable obligations, but it is important context for the dispute over eligibility and intent.

Arrest Follows Earlier Ethics and Impeachment Scrutiny

The grant awards had already generated months of scrutiny. A special prosecutor’s July report found probable cause to pursue impeachment proceedings involving grants awarded to businesses connected to Espinosa and her family.

In August, the City Commission split 2-2 on advancing the proceedings, falling short of the required vote. That municipal process was separate from the criminal investigation and did not determine guilt on the charges announced Wednesday. The criminal case was jointly investigated by FDLE and the Department of Financial Services’ Criminal Investigations Division.

City Announces Internal Review

Following the arrest, Kissimmee announced that Angela Eady would perform mayoral duties at commission meetings and ceremonial events during Espinosa’s absence. City officials said an arrest alone does not automatically vacate the mayor’s seat. City Manager Mike Steigerwald also authorized an internal investigation into Business Boost 2.0. The review will examine how the program was designed, administered and supervised, including whether grant procedures were followed and whether existing safeguards were adequate.

The criminal proceedings will address a separate question: whether prosecutors can prove that Espinosa knowingly committed theft and fraud. Her defense maintains that the publicly administered grant awards did not constitute a criminal scheme.

Sources & Further Reading 

• WFTV — Arrest, charges, not-guilty plea and grant recipients WFTV
• WFTV — Prosecutors’ account of the applications, payments and conflict warning WFTV
• Spectrum News 13 — News conference, tenant grants and earlier impeachment proceedings mynews13.com
• NBC 6 South Florida — Charges and officials’ statements about potential punishment nbcmiami.com
• The Washington Post — Defense response and grant eligibility context washingtonpost.com
• LiveNOW from FOX — News conference video supplied for this report