Kissimmee Mayor Jackie Espinosa was arrested Wednesday on charges of grand theft and organized scheme to defraud, Florida Attorney General James Uthmeier announced. She is accused of allegedly steering COVID-19 relief grant money to businesses tied to her family. Espinosa has not been convicted, and her attorney says she is innocent.
The Florida Department of Law Enforcement made the arrest, according to Central Florida Public Media. WFTV reported Espinosa was stopped shortly after 8 a.m. as she drove away from her home. She was then booked into the Osceola County Jail.
At a press conference Wednesday afternoon, Uthmeier said the case centers on the city’s Business Boost 2.0 program, which was meant to help small businesses recover from the pandemic. “It was not designed to help government officials enrich themselves,” he said.
Investigators allege Espinosa applied for the grants on behalf of her family’s businesses. State Chief Financial Officer Blaise Ingoglia said an audit found seven businesses in properties owned or managed by her family received a combined $90,000. Of that, $50,000 went to her family’s businesses, and $40,000 went to tenants.
Ingoglia said Espinosa faces up to 30 years in prison if convicted. Grand theft of $20,000 to $100,000 is a second-degree felony, and organized scheme to defraud of $50,000 or more is a first-degree felony.
Espinosa’s attorney, Migdalia Perez, said the mayor is innocent and that the case does not involve criminal conduct. “The prosecution must establish that the mayor acted with criminal intent,” Perez said, per WKMG.
In September, the Florida Commission on Ethics censured Espinosa and recommended a $2,000 fine over the use of the $50,000 in city relief funds. Earlier, a special prosecutor found probable cause to pursue impeachment, but Kissimmee city commissioners deadlocked 2 to 2 on whether to proceed to trial.
Espinosa remains in office for now. Vice Mayor Angela Eady will fill in for her at City Commission meetings and ceremonial events. A city spokeswoman said city services and day-to-day operations will continue under City Manager Mike Steigerwald, who has authorized an internal investigation into how Business Boost 2.0 was designed and administered.
Spectrum News 13 reported that Espinosa is being held without bond.
