Kissimmee Mayor Arrested on Grand Theft and Fraud Charges Amid $50,000 Grant Controversy

Photo Osceola County Corrections.

Kissimmee Mayor Jackie Espinosa was arrested Wednesday morning on grand theft and organized fraud charges following a months-long investigation into city pandemic-relief grants awarded to businesses connected to her family.

Florida Attorney General James Uthmeier announced the October 21 arrest, saying state officials would provide additional details at a news conference later in the afternoon.

The arrest follows a controversy involving $50,000 in federal COVID-19 relief funds distributed through Kissimmee’s Boost 2.0 program. Espinosa previously acknowledged an ethics violation related to the grants but maintained that the businesses were entitled to receive the money.

The specific conduct underlying the new felony charges has not yet been publicly detailed. Espinosa’s attorney says she maintains her innocence and disputes that the grant program involved a criminal scheme.

An Arrest Outside Her Home

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Officers stopped Espinosa shortly after 8 a.m. as she drove away from her home, according to WFTV Channel 9, which recorded the arrest. Officers instructed her to exit the vehicle before placing her in handcuffs.

Espinosa was booked into the Osceola County Jail under her legal name, Eva Jacqulyn Espinosa.

Official jail records list two charges: grand theft involving property valued between $20,000 and $100,000, and organized scheme to defraud. Both charges initially showed a $0 bond amount.

Uthmeier announced that he would hold a 2 p.m. news conference at his Orlando office alongside Florida Chief Financial Officer Blaise Ingoglia and Florida Department of Law Enforcement Commissioner Larry Keefe.

The $50,000 Controversy

The controversy began with Kissimmee’s Boost 2.0 program, which distributed federal American Rescue Plan Act funding to local businesses following the COVID-19 pandemic.

Three businesses connected to Espinosa and her family received grants totaling $50,000, prompting questions about whether the mayor had improperly benefited from a city program she participated in establishing.

A special prosecutor reviewing the matter found probable cause to pursue impeachment proceedings. Kissimmee commissioners subsequently split 2-2 on whether to advance the proceedings, short of the three votes necessary to move forward.

A separate Florida Commission on Ethics investigation also examined Espinosa’s business relationships with the city.

In September, Espinosa signed a joint stipulation acknowledging that she violated Florida Statute 112.313(7)(a) by having an employment or contractual relationship with an entity doing business with her government agency.

The agreement recommends a $2,000 civil penalty and a public censure and reprimand, subject to final approval by the commission, which is scheduled to consider the matter October 23. It also establishes that Espinosa did not vote to approve individual grants to her businesses, that the commission’s votes concerning the program occurred before her businesses applied, and that no qualified applicants were denied funding.

The Mayor Disputes Criminal Wrongdoing

During a September interview with News 6, Espinosa defended the grant awards, saying the money had been allocated before she became mayor.

“I’ve stated from the very beginning, there’s no criminality behind this. It is completely administrative,” she said.

Following Wednesday’s arrest, her attorney issued a statement published by WESH 2, maintaining that the grant program was publicly approved and administered by city employees.

The attorney disputed that Espinosa acted with criminal intent and said her legal team would challenge the charges in court.

The September ethics agreement specifically states that Espinosa did not admit to criminal conduct, fraudulent intent, or any criminal offense.

More Answers Expected Wednesday Afternoon

The attorney general’s scheduled 2 p.m. news conference is expected to provide additional information about the investigation and the allegations supporting the two felony charges.

Although the criminal case involves the previously disputed grant program, officials have not yet publicly detailed how investigators believe the alleged theft and fraudulent scheme occurred.

This is a developing story. We will update this report as additional information becomes available.

All parties are presumed innocent until proven guilty in a court of law.

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