Kissimmee mayor arrested over $50,000 in COVID-19 business relief grants

Kissimmee Mayor Jackie Espinosa was arrested on grand theft and organized fraud charges after prosecutors said businesses tied to her and her family received $50,000 from a city COVID-19 relief program she championed.

Kissimmee Mayor Eva Jacquelyn "Jackie" Espinosa, 58, was arrested Wednesday on charges of grand theft, a second-degree felony, and organized scheme to defraud, a first-degree felony, Florida Attorney General James Uthmeier's office said. She faces up to 30 years in prison if convicted as charged.

According to the arrest warrant, Espinosa improperly obtained $50,000 through the city's Business Boost 2.0 grant program, a federally funded initiative launched in September 2025 to help small businesses recover from the effects of COVID-19.

Three family businesses applied on day one

Kissimmee City Hall in downtown Kissimmee (file photo)

Prosecutors say that on the day the program opened, applications were filed for three businesses owned or controlled by Espinosa or her immediate family: a dance production studio, a diner and a real estate company. The grants were approved, and $50,000 was deposited into family-linked accounts on Nov. 7, about 19.6% of the $255,000 awarded in the first batch.

Florida Chief Financial Officer Blaise Ingoglia, whose office audited COVID-19 grant programs, said seven businesses in properties owned or managed by the family received a combined $90,000, including $40,000 that went to four tenant businesses. "This is the local government equivalent of insider congressional stock trading," Ingoglia said.

Kissimmee's city attorney had emailed the mayor asking her to return the money, calling its acceptance a prohibited conflict of interest. Espinosa allegedly replied that she would fight any complaint. "The evidence makes very clear that there was intent to engage in this conflict of interest," Uthmeier said.

Mayor maintains her innocence

Espinosa's attorney, Migdalia Perez, said the case involves a publicly approved grant program administered by city staff, "not a secret scheme to steal taxpayer money." "There is a fundamental difference between an alleged ethics violation and a criminal offense," Perez said.

Espinosa was booked into the Osceola County Jail. A not guilty plea was entered at her court appearance Thursday, and bond was set at $70,000.

The city said its charter does not address the arrest of a sitting mayor, so Espinosa remains in office unless she is suspended, removed or resigns. Vice Mayor Angela Eady will carry out mayoral duties at commission meetings and ceremonial events in her absence, and City Manager Mike Steigerwald has ordered an internal review of the grant program.

Kissimmee mayor arrested over $50,000 in COVID-19 business relief grants