OSCEOLA COUNTY, Fla. — Vice Mayor Angela Eady will perform mayoral duties at City Commission meetings and ceremonial events in Jackie Espinosa’s absence following the mayor’s arrest Wednesday, the city announced.
Espinosa remains in office. The city said an arrest does not vacate the seat under its charter; a qualifying action such as suspension, removal or resignation must occur.
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 theft and organized scheme to defraud charges. Her attorney, Migdalia Perez, said she maintains her innocence and denies acting with criminal intent.
City services continue normally
City officials said services will continue normally and residents and businesses should contact city departments as they ordinarily would.
Kissimmee operates under a commission-manager government, with the city manager overseeing daily operations and more than 900 employees.
Channel 9 examined the city’s succession process and what could happen next.
Attorney disputes criminal allegations
Perez filed Espinosa’s written not-guilty plea, waived arraignment and requested evidence from prosecutors following 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 money,” Perez said in a statement.
Perez argued that an alleged ethics violation does not establish a criminal offense and that prosecutors must prove every element of the charges beyond a reasonable doubt.
“We intend to challenge these allegations vigorously in court,” she said.
Investigators detail $50,000 in grants
Prosecutors allege Espinosa helped create and expand Business Boost 2.0, then applied alongside immediate family members for grants benefiting three businesses they owned or controlled.
The program used American Rescue Plan Act dollars to provide one-time assistance to eligible small businesses within Kissimmee.
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 Nov. 4, 2025, and the funds were deposited Nov. 7.
The state alleges Espinosa declined to return the money after the city attorney notified her Dec. 5 that accepting it created a prohibited conflict of interest.
Read how investigators say the grant applications and payments unfolded.
Court records describe internal concerns
The affidavit also describes questions raised inside City Hall before the grants were approved.
City employee Yolanda Claudio told investigators she stopped reviewing the applications and asked Economic Development Director David Rodriguez to obtain guidance from the city attorney about a possible conflict.
Rodriguez told investigators he approved the applications 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 Wednesday afternoon news conference, Chief Financial Officer Blaise Ingoglia said an audit identified irregularities in the grant awards.
The Florida Department of Law Enforcement and the Florida Department of Financial Services Criminal Investigations Division jointly investigated the case.
Only Channel 9 witnessed arrest
Only Channel 9 was there when law enforcement pulled Espinosa over shortly after 8 a.m. Wednesday as she drove away from her home. Officers asked her to step out of the vehicle and placed her in handcuffs.
Espinosa was booked into the Osceola County Jail. An Osceola County Jail booking clerk 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 unless proven guilty.
Arrest follows months of scrutiny
9 Investigates previously reported that a special prosecutor found probable cause to pursue Espinosa’s impeachment over allegations involving the grants.
Channel 9 will continue updating this story as additional information becomes available.
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