Wednesday, October 21, 2026

KISSIMMEE, Fla. — Kissimmee Mayor Jackie Espinosa was arrested Wednesday morning and charged with grand theft and organized scheme to defraud following an investigation into $50,000 in city grant funds awarded to businesses connected to her and her family.

Florida Attorney General James Uthmeier announced the arrest, saying the charges stem from Espinosa’s involvement in the City of Kissimmee’s Business Boost 2.0 program, which was funded through federal American Rescue Plan Act dollars intended to help small businesses recover from the economic effects of the COVID-19 pandemic.

Espinosa, whose legal name is Eva Jacquelyn 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.

The arrest follows months of controversy surrounding the distribution of city grant funds, previous ethics complaints, and an unsuccessful effort to remove Espinosa from office.

According to a 26-page arrest affidavit released by the Florida Department of Law Enforcement, investigators allege Espinosa used her position as mayor to help establish and modify the grant program before businesses owned or controlled by her family received financial assistance.

Espinosa, who became mayor in November 2024, has maintained that the businesses were eligible to apply for the funding and has denied wrongdoing.

Investigation Details How Three Businesses Received $50,000

Investigators say Espinosa advocated for the creation and expansion of Business Boost 2.0, a city initiative designed to provide one-time financial assistance to qualifying small businesses operating within Kissimmee.

When applications opened in September 2025, three businesses connected to Espinosa and her family applied for grants totaling $50,000.

According to the arrest affidavit, the businesses received the following amounts:

  • Adanse LLC: $20,000

  • Kissimmee Diner Inc., operating as Matador Tacos & Tapas: $15,000

  • The Real Estate Gallery LLC: $15,000

The applications were approved on November 4, 2025, and investigators say bank records confirmed the funds were deposited into accounts associated with the businesses on November 7.

The grants were part of the first $255,000 distributed through the Business Boost 2.0 program.

City Employee Raised Conflict-of-Interest Concerns Before Grants Were Approved

The arrest affidavit also describes questions raised internally by city employees before the grants were approved.

According to investigators, city employee Yolanda Claudio noticed the applications involving Espinosa’s businesses in September 2025 and requested guidance from Economic Development Director David Rodriguez.

Claudio questioned whether multiple businesses associated with the same owner could receive funding and whether the mayor’s participation created a potential conflict of interest.

Investigators say Rodriguez addressed the question involving multiple businesses but did not obtain a legal determination regarding the potential conflict.

Rodriguez later told investigators he approved the applications because the program’s written guidelines did not specifically prohibit Espinosa from applying.

Former City Attorney Olga Sanchez de Fuentes told investigators that her office had not been consulted about the applications or the program’s eligibility requirements.

On December 5, 2025, approximately one month after the payments were made, Sanchez de Fuentes advised Espinosa that accepting the grants created a prohibited conflict of interest and recommended that the money be returned.

According to investigators, Espinosa declined to return the funds.

City Manager Michael Steigerwald also recommended that Espinosa repay the money and publicly address the matter, according to the affidavit.

Investigators allege that Espinosa’s actions surrounding the program were intended to make it easier for her family’s businesses to obtain city funding.

Attorney General, State Officials Address Arrest

During a Wednesday afternoon news conference in Orlando, Attorney General Uthmeier was joined by Florida Chief Financial Officer Blaise Ingoglia and Florida Department of Law Enforcement Commissioner Larry Keefe to discuss the investigation.

“Public officials do not get to write the rules and then write themselves a check,” Uthmeier said.

The attorney general alleged that Espinosa helped advance the grant program and subsequently received taxpayer-funded assistance for family businesses despite conflict-of-interest concerns.

Ingoglia said the investigation reflected the state’s efforts to identify potential misuse of public funds.

FDLE Commissioner Keefe credited investigators and financial auditors for their work on the case.

The investigation was conducted jointly by FDLE and the Florida Department of Financial Services Criminal Investigations Division.

The case will be prosecuted by the Florida Office of Statewide Prosecution’s Public Integrity Unit, with Special Counsel Richard Mantei assigned to the matter.

Espinosa Pleads Not Guilty, Attorney Disputes Criminal Allegations

Following Wednesday’s arrest, Espinosa entered a written plea of not guilty to both felony charges.

Her attorney, Migdalia Perez, filed the plea, waived arraignment and requested evidence from prosecutors.

Perez maintains that the mayor did not commit a crime and argues that the state’s allegations improperly treat a potential ethics violation as evidence of criminal conduct.

“This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money,” Perez said in a statement reported by ABC News.

Perez also emphasized that prosecutors must establish criminal intent beyond a reasonable doubt and said the defense intends to vigorously challenge the charges in court.

Previous Ethics Investigation and Impeachment Effort

Wednesday’s arrest follows a series of investigations and political disputes surrounding the city’s grant program.

Earlier this year, the Florida Commission on Ethics found probable cause to believe Espinosa had violated state ethics requirements related to the grants.

A separate investigation by Special Prosecutor Mayanne Downs recommended that the city refer the matter to FDLE and initiate impeachment proceedings.

In August, Espinosa survived an impeachment effort when the Kissimmee City Commission deadlocked in a 2-2 vote.

State investigators also examined an additional $40,000 in grants awarded to businesses renting commercial properties associated with Espinosa and her family. Those payments brought the broader amount of grants under scrutiny to approximately $90,000, although the criminal charges announced Wednesday center on the $50,000 awarded directly to family-connected businesses.

City Announces Review of Grant Program as Questions Remain About Mayor’s Future

Following the arrest, the City of Kissimmee announced an investigation into how Business Boost 2.0 was developed, administered and overseen, including whether adequate safeguards existed to prevent potential conflicts of interest.

The arrest also raises questions about Espinosa’s continued service as mayor.

Florida law provides a process through which Gov. Ron DeSantis may suspend certain elected officials facing criminal charges. As of Wednesday evening, no gubernatorial suspension order had been confirmed in the reporting reviewed.

The city has indicated that Vice Mayor Angela Eady would assume mayoral responsibilities under its succession process. Earlier Wednesday, Espinosa remained in office, and that process had not yet been invoked.

Espinosa was booked into the Osceola County Jail on Wednesday and was expected to make her first appearance before a judge Thursday.

If convicted as charged, she could face a maximum prison sentence of 30 years, according to state officials.

The criminal allegations remain unproven, and Espinosa is presumed innocent unless and until proven guilty in court.

The arrest represents a significant development in an ongoing investigation that has drawn attention from state officials, city leaders and Kissimmee residents.

Positively Osceola will continue following the case, including upcoming court proceedings, the city’s internal investigation and any action affecting the leadership of the City of Kissimmee.