KISSIMMEE, Fla. — Kissimmee Mayor Jackie Espinosa has been arrested on felony charges after state investigators accused her of using her position to improperly obtain money through a city program designed to help businesses recover from the COVID-19 pandemic.
Florida Attorney General James Uthmeier announced Wednesday that Espinosa faces charges of grand theft and organized scheme to defraud.
WATCH BELOW: Florida AG holds news conference on arrest
During an afternoon news conference in Orlando, Uthmeier said the case involves Kissimmee's Business Boost 2.0 program. According to Uthmeier, Espinosa supported and voted to approve the program before later submitting applications seeking assistance for businesses tied to herself and family members.
"This was a program to try to help small businesses get back up on their feet after the COVID pandemic," Uthmeier said. "It was not designed to help government officials enrich themselves."
State officials say $90,000 went to businesses tied to Espinosa
Florida Chief Financial Officer Blaise Ingoglia said his office discovered what he described as irregularities while auditing COVID-19-related grant programs administered by several local governments.
According to Ingoglia, seven businesses at properties owned or managed by Espinosa's family received a combined $90,000 through Kissimmee's Business Boost 2.0 program. He said $50,000 went to Espinosa's family businesses, while another $40,000 went to tenants.
Ingoglia said investigators determined that Espinosa submitted grant applications on behalf of her family's businesses.
Uthmeier alleged that Espinosa also participated in policy decisions that made it easier to apply for and receive money through the program. He said charging documents and bank records would provide further details about the allegations.
Investigators eventually referred the matter to the Florida Department of Law Enforcement, the Florida Commission on Ethics and a special prosecutor, according to Ingoglia.
Officials say concerns were raised about applications
Ingoglia said investigators found that people within Espinosa's office had warned her against applying for the grant money.
"We started realizing that there were people within her own office that said this is not a good idea, you should not do it," Ingoglia said.
He also said Espinosa was among the first to submit applications when the grant application period opened.
FDLE Commissioner Larry Keefe said his agency worked with investigators from the CFO's office to develop the case before presenting its findings to prosecutors.
Espinosa's attorney says she is innocent
During Wednesday's news conference, a reporter cited a statement from Espinosa's attorney maintaining her innocence and arguing that there is a fundamental difference between an alleged ethics violation and a criminal offense.
Uthmeier responded that prosecutors believe the evidence supports criminal charges, pointing to applications he said Espinosa signed, money she allegedly received and decisions she allegedly made involving the program.
The allegations will now be litigated in court. An arrest and criminal charges do not establish guilt, and Espinosa is presumed innocent unless proven guilty.
Uthmeier said he had not spoken with Florida Gov. Ron DeSantis since Espinosa's arrest when asked whether the governor could take action concerning her position as mayor.
State officials also said they plan to investigate how information about the impending arrest became public before it took place. Uthmeier said advance disclosure of an arrest can create safety risks for law enforcement and potentially cause problems involving evidence.
The case comes as Uthmeier's office says it is increasing its focus on public-corruption investigations across Florida.
The city's website said that Espinosa has served as mayor since November 2024.
