KISSIMMEE, Fla. — Kissimmee Mayor Jackie Espinosa was arrested Wednesday after state officials said she schemed to steer pandemic recovery grants intended for small businesses to companies tied to her and her family.
State alleges conflicts, reduced oversight and self-dealing
Florida Attorney General James Uthmeier announced the arrest, saying Espinosa is charged with grand theft and participating in an organized scheme to defraud tied to the city’s Business Boost 2.0 grant program. The program was created to assist local small businesses recovering from the COVID-19 pandemic.
“This was a program to try to help small businesses get back on their feet after the COVID pandemic. It was not designed to help government officials enrich themselves,”
Uthmeier’s office said Espinosa backed and voted for the business-assistance fund on the same day the program opened for applications in September 2025. Investigators allege she then submitted three applications seeking a combined $50,000 on behalf of herself and family members.
Florida Chief Financial Officer Blaise Ingoglia said his auditors found irregularities during a routine review of local governments’ COVID relief spending. Ingoglia said seven businesses operating at properties owned or managed by Espinosa received a total of $90,000 in grant awards — with $50,000 going to businesses tied directly to Espinosa and $40,000 to tenant businesses.
Charges and potential penalties
The warrant against Espinosa lists two counts: a second-degree felony count of grand theft involving between $20,000 and $100,000, and a first-degree felony count of participating in an organized scheme to defraud that involves $50,000 or more. Officials said those charges carry significant potential prison exposure; Ingoglia noted a conviction could result in up to 30 years behind bars.
State authorities also contend Espinosa sought to change oversight rules for the Business Boost 2.0 program in ways that would have made it easier for herself and relatives to receive funds. The Attorney General framed the case as an alleged betrayal of a relief program meant to aid struggling small businesses.
What investigators found
According to the state’s account, auditors and investigators identified application activity and patterns that prompted a closer look and ultimately a criminal referral. Key facts publicized by state officials include:
- $90,000 in total grants received by seven businesses linked to properties Espinosa owns or manages.
- $50,000 in awards tied directly to Espinosa’s businesses.
- Three applications submitted by Espinosa seeking a combined $50,000 for herself and family members.
- Efforts alleged to reduce program oversight before or as funds were disbursed.
| Category | Amount |
|---|---|
| Grants to Espinosa-tied businesses | $50,000 |
| Grants to tenant businesses at her properties | $40,000 |
| Total distributed to seven businesses | $90,000 |
The Attorney General’s statement did not include detail about whether any funds have been recovered or whether additional arrests or charges are expected.
Local reaction and next steps
The allegations raise questions about governance and oversight in smaller cities that disbursed federal and state pandemic relief. The Business Boost 2.0 program was explicitly set up to support businesses still recovering from COVID-related losses; Uthmeier’s office said it is taking action where officials allegedly abused those programs for personal gain.
City officials have not publicly released a detailed response to the arrest announcement as of Wednesday afternoon. Court filings, audit reports and any statements from Espinosa or her legal counsel will be key to tracing the factual record and the mayor’s defense strategy.
For residents and small-business owners in Kissimmee, the case underscores the stakes of pandemic-era relief programs and the importance of transparency when local leaders have influence over grant design and approval.
State investigators have paused short of outlining a broader conspiracy beyond the facts summarized in the arrest notice. The coming days will likely bring arraignment filings and, possibly, further disclosures from auditors and prosecutors about how applications were processed and awarded.
As the legal process unfolds, the allegations alone present a fraught moment for Kissimmee city government, prompting scrutiny of a program intended to aid recovery but now at the center of a criminal probe.
