Kissimmee Mayor Jackie Espinosa was arrested Wednesday morning on grand theft and fraud charges after an investigation into $50,000 in federal COVID-19 relief grants awarded to businesses tied to her and her family. State officials allege she used her position to influence the grant program’s administration to secure public funds.
Mayor Faces Felony Charges Over Business Grants
Kissimmee Mayor Jackie Espinosa was arrested Wednesday, October 21, 2026, for allegedly defrauding a federal grant program. Florida Attorney General James Uthmeier announced the arrest of Kissimmee Mayor Jackie Espinosa, 58, who was booked into the Osceola County Jail.
This morning, we arrested Kissimmee mayor Jackie Espinosa and are charging her with Grand Theft and Organized Scheme to Defraud. We will be holding a press conference at 2pm at our Orlando office with CFO Ingoglia and FDLE Commissioner Keefe to provide more information.
Espinosa faces two felony counts: a second-degree felony charge of grand theft involving an amount between $20,000 and $100,000, and a first-degree felony charge of organized scheme to defraud involving $50,000 or more.
The case centers on the Business Boost 2.0 (BB2) Grant Program, which used American Rescue Plan Act dollars to provide non-repayable grants from $5,000 to over $20,000 for small businesses impacted by the COVID-19 pandemic. Espinosa advocated for the creation and expansion of the program after taking office in November 2024.
Investigators allege Espinosa and immediate family members applied for a combined $50,000 for three businesses they owned or controlled on the day the program opened in September 2025. State banking records show the grants were approved and deposited into family-connected accounts on November 7, 2025.
State Audit Finds $90,000 in Total Funds
Seven businesses in properties owned or managed by Espinosa’s family received a combined $90,000 in grant assistance, according to Florida Chief Financial Officer Blaise Ingoglia. Ingoglia detailed these findings during an afternoon press conference in Orlando.
Of that total, $50,000 went directly to businesses owned by Espinosa and her family, while $40,000 went to tenants renting commercial properties associated with the family.
- Kissimmee Diner Inc., doing business as Matador Tacos & Tapas, listed as 100% owned by her husband, Jorge Espinosa, which received $15,000.
- The Real Estate Gallery LLC, a business owned by her husband, which received $15,000.
The affidavit states Espinosa proceeded with the funding despite being advised that doing so was improper and created a prohibited conflict of interest. State prosecutors and investigators maintain she used her official position as mayor to improperly influence the awarding of funds.
Defense Contests Criminal Intent
Espinosa entered a plea of not guilty following her arrest. Her defense attorney, Migdalia Perez, argued that investigators were incorrectly criminalizing an administrative matter.
This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money.
Migdalia Perez, Attorney for Jackie Espinosa
Perez asserted there is a fundamental difference between an alleged ethics violation and a criminal offense
, noting that the prosecution must establish criminal intent beyond a reasonable doubt. Espinosa faces up to 30 years in prison if convicted.
Incredible work by everyone involved! Commissioner Keefe will provide an update on the case during the press conference today. https://t.co/HPbUjRlwgc
Attorney General Uthmeier rejected the notion that this was merely an ethics breach. During the press briefing, he stated that Florida taxpayers funded that money to help small businesses recover, not to enrich the mayor who controlled it.
City Appoints Interim Leadership
Vice Mayor Angela Eady will perform mayoral duties at City Commission meetings and ceremonial events while Espinosa remains in office.
City Manager Mike Steigerwald authorized an internal investigation into the Business Boost 2.0 Program.
Following the October 21 arrest of Mayor Espinosa, City Manager Mike Steigerwald authorized an internal investigation of the Business Boost 2.0 Program.
City of Kissimmee, Official Statement
City officials confirmed that daily municipal operations and services for residents continue normally under the direction of the city manager and staff.
Gov. Ron DeSantis has not yet decided whether to suspend Espinosa from office.