OSCEOLA COUNTY, Fla. — Deputy Mayor Angela Eady will serve as mayor at city commission meetings and ceremonies in the absence of Jackie Espinosa following the mayor’s arrest Wednesday, the city announced.
Espinosa remains in office. The city said an arrest does not make the seat vacant under its charter; a permissible action such as suspension, revocation or resignation must take place.
City Manager Mike Steigerwald also authorized an internal investigation into the Business Boost 2.0 program, which is at the center of the criminal case involving $50,000 in grants awarded to Espinosa family businesses.
Espinosa pleaded not guilty Wednesday to grand larceny and organized scheme to defraud charges. Her lawyer, Migdalia Perez, said she maintains her innocence and denies acting with criminal intent.
Municipal services continue as normal
City officials said services would continue as normal and residents and businesses should contact city services as they usually would.
Kissimmee operates under commission-manager government, with the city manager overseeing daily operations and employing more than 900 employees.
Channel 9 looked at the city’s succession process and what could happen next.
Lawyer disputes criminal allegations
Perez entered a written plea of not guilty to Espinosa, waived indictment and requested evidence from prosecutors after the mayor’s arrest Wednesday morning.
“This case involves a publicly approved grant program administered by city staff, not a secret scheme to steal taxpayer dollars,” Perez said in a statement.
Perez argued that an alleged ethics violation does not constitute a criminal offense and that prosecutors must prove each element of the charges beyond a reasonable doubt.
“We intend to vigorously contest these allegations in court,” she said.
Investigators detail $50,000 in grants
This morning we arrested Kissimmee Mayor Jackie Espinosa and charged him with grand theft and organized fraud scheme. We will host a press conference at 2 p.m. in our Orlando office with Chief Financial Officer Ingoglia and FDLE Commissioner Keefe to provide more information.
– Attorney General James Uthmeier (@AGJamesUthmeier) October 21, 2026
Prosecutors allege that Espinosa helped create and grow Business Boost 2.0, then applied alongside members of his immediate family for grants benefiting three companies they owned or controlled.
The program used American Rescue Plan Act dollars to provide one-time assistance to eligible Kissimmee small businesses.
According to the arrest affidavit, Adanse LLC received $20,000; Kissimmee Diner Inc., which operates as Matador Tacos & Tapas, received $15,000; and The Real Estate Gallery LLC received $15,000.
Investigators said the applications were approved on November 4, 2025, and the funds were deposited on November 7.
The state alleges Espinosa refused to return the money after the city attorney informed her Dec. 5 that accepting it created a prohibited conflict of interest.
Find out how investigators say grant applications and payments went.
Court records describe internal concerns
The affidavit also outlines issues raised at City Hall before the grants were approved.
City Clerk Yolanda Claudio told investigators she stopped reviewing the applications and asked Economic Development Director David Rodriguez to get advice from the city attorney about a possible conflict.
Rodriguez told investigators he approved the requests because the program’s guidelines did not specifically exclude the mayor’s businesses. According to the affidavit, he did not consult the city attorney about the potential conflict.
At a news conference Wednesday afternoon, Chief Financial Officer Blaise Ingoglia said an audit had identified irregularities in grant allocation.
The Florida Department of Law Enforcement and the Criminal Investigation Division of the Florida Department of Financial Services jointly investigated the case.
Only Channel 9 witnessed the arrest
Only Channel 9 was present when law enforcement arrested Espinosa shortly after 8 a.m. Wednesday as she walked away from her home. The police asked him to get out of the vehicle and handcuffed him.
Espinosa was booked into the Osceola County Jail. A booking clerk at the Osceola County Jail told Channel 9 she was not scheduled to make her first court appearance Wednesday.
She faces one count of grand theft involving $20,000 to $100,000, a second-degree felony, and one count of organized scheme to defraud involving $50,000 or more, a first-degree felony.
The allegations have not been proven in court. Espinosa is presumed innocent until proven guilty.
Arrest follows months of scrutiny
9 Investigations previously reported that a special prosecutor found probable cause to pursue Espinosa’s impeachment proceedings over the grant allegations.
Channel 9 will continue to update this story as additional information becomes available.
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