Florida mayor arrested on theft and fraud charges

DUANEWS | October 21, 2026

The mayor of a Central Florida city was arrested Wednesday morning on charges of grand theft and organized fraud, following an investigation into public funds awarded to businesses connected to her family.

Jackie Espinosa, the mayor of Kissimmee, located south of Orlando, was taken into custody Wednesday, October 21, Florida Attorney General James Uthmeier confirmed.

The arrest comes after months of controversy involving allegations that Espinosa and members of her family received $50,000 through a city grant program originally designed to help small businesses recover from the economic effects of the COVID-19 pandemic.

What Is the Mayor Accused Of?

According to Florida authorities, Espinosa faces one count of grand theft involving between $20,000 and $100,000 and one count of participating in an organized scheme to defraud involving property valued at $50,000 or more.

Investigators allege that the mayor helped establish and expand Kissimmee’s Business Boost 2.0 program, which distributed federal pandemic relief funds to qualifying local businesses.

State officials say Espinosa and immediate family members subsequently applied for grants totaling $50,000 for three businesses they owned or controlled.

According to investigators, the applications were submitted in September 2025, and the money was deposited into accounts associated with the family in November of that year.

Prosecutors allege that Espinosa participated in shaping the program and reducing oversight in ways that benefited her family’s applications.

These claims are allegations and have not been established as facts in court.

Investigators Say the Mayor Was Warned

The investigation also examined what happened after the grant money was distributed.

According to the Florida Attorney General’s Office, Kissimmee’s city attorney notified Espinosa in December 2025 that accepting the funds created a prohibited conflict of interest.

Investigators allege that she was advised to return the money but declined to do so.

The allegations eventually led to ethics proceedings and an effort to remove her from office.

Earlier this year, a special prosecutor concluded that there was sufficient cause to pursue impeachment proceedings over alleged ethics violations.

However, the Kissimmee City Commission voted 2–2 on whether to advance the proceedings, preventing the effort from moving forward.

Arrested Wednesday Morning

Espinosa was arrested Wednesday morning as she was driving away from her home, according to WFTV Channel 9, whose journalists witnessed the arrest.

She was subsequently booked into the Osceola County Jail.

The Florida Department of Law Enforcement and the Florida Department of Financial Services participated in the investigation.

State officials provided additional information about the case Wednesday afternoon, outlining the alleged connection between the city grant program and the payments received by businesses associated with Espinosa’s family.

Mayor Denies Wrongdoing

Espinosa’s attorney, Migdalia Perez, has rejected the allegations and maintains that her client is innocent.

According to a statement provided to ABC News, the defense argues that the grant program was publicly approved and administered by city employees.

The attorney contends that the prosecution must demonstrate criminal intent and that an alleged ethics violation does not automatically constitute a criminal offense.

The defense has indicated that it intends to challenge the charges in court.

Political Controversy in Central Florida

Espinosa became mayor of Kissimmee in November 2024, and her current term is scheduled to continue until 2028.

Her arrest represents a significant development in a controversy that has already attracted attention from city officials, state investigators and the Florida Commission on Ethics.

The case also raises broader questions about government accountability and the distribution of public money intended to support businesses during economic emergencies.

However, the filing of criminal charges does not establish guilt.

Espinosa is presumed innocent unless and until proven guilty in court.

The case remains ongoing, and further developments are expected as it moves through the judicial system.