Kissimmee mayor released from jail after posting $70K bond following arrest on grand theft, fraud charges

KISSIMMEE, Fla - All eyes were on the Osceola County Jail as Kissimmee Mayor Jackie Espinosa posted her $70,000 bond and was released following her arrest on charges of grand theft and scheme to defraud. 

Espinosa’s release comes as she faces allegations that she used a grant program she helped create as mayor to obtain funding for her own businesses.

Prosecutors question source of bail funds

Big picture view:

Espinosa, who appeared in court on Thursday wearing an orange jumpsuit, had been held in the Osceola County jail since her arrest the previous morning. Jail officials said she was housed in a separate cell for her safety because of her high-profile status.

"I've set bond at $20,000 on count one and $50,000 on count two," Judge Hal Epperson Jr. said.

The judge declined to impose a different bond amount, leaving the total at $70,000. It was not immediately clear whether Espinosa would be able to post bond and leave jail.

The state prosecutor asked the judge to require Espinosa to demonstrate that the funds used to secure her release were not derived from criminal activity.

The charges stem from allegations that Espinosa helped establish a grant program in her capacity as mayor and then applied for grants through the program to obtain money for her own businesses, according to state prosecutors.

Her defense attorneys argued that the money at the center of the case was no longer available and that Espinosa had legitimate sources of income.

"Miss Espinosa runs many businesses. She's the mayor of Kissimmee. She has lots of sources of funds that, you know, are not in any way involved in any kind of misdeed," a defense attorney told the court.

The allegations have not been proven in court.

Commissioner declines to discuss allegations

Espinosa had been scheduled to appear alongside Latino community leaders at an event encouraging residents to vote. Among those attending was Kissimmee Commissioner Jeanette Martinez, who could be a prosecution witness in the case.

Martinez declined to discuss the mayor or the allegations.

"Everyone has their day in court," Martinez said.

According to the report, Martinez previously told investigators that she recognized ethical implications in the mayor's actions and found the conduct difficult to explain. She also voted to move forward with a process addressing concerns about Espinosa's conduct.

"I had a hard time sleeping," Martinez said. "Regardless of my vote being to move forward with the process, putting aside Mayor Jackie Espinosa's seat, the title, I think about the person. That's a mother, that's a wife, that's a grandmother."

Attorney general addresses arrest timing

Some speakers at the community event raised concerns about the timing of Espinosa's arrest, which came ahead of the midterm elections. Espinosa was not up for reelection at the time, according to the report.

Florida Attorney General James Uthmeier, a Republican, said the investigation had been underway for some time and that the timing of the arrest warrant was not under his direct control.

"This case has been in the works for a while," Uthmeier said. "I don't control, necessarily, when a judge signs an arrest warrant. But the minute it was signed, we went public to explain why we arrested this public official."

Uthmeier said public officials are expected to serve taxpayers rather than benefit financially from initiatives they oversee.

"Public officials are public servants," he said. "They're here to serve you all, the taxpayers, not to get flush with cash from their own initiatives."

What's behind grand theft, fraud charges?

The backstory:

In 2025, the City of Kissimmee launched the "Business Boost 2.0 (BB2) Grant Program," which provided financial grants between $5,000 and $20,000+ to small businesses impacted by the COVID-19 pandemic.

The Florida Attorney's Office and the Florida Department of Law Enforcement allege that Espinosa, as mayor, helped create and expand the program, then applied for $50,000 in grants for businesses connected to her or her family members, and ignored ethical concerns raised by staff members.

By the numbers:

FOX 35 Investigative Reporter Marie Edinger stopped by each of the mayor's family businesses named in the investigation, but no one came to the door or answered calls or emails to those responsible for the companies. Below is a list of the businesses and grants received.

• Four businesses that pay rent in a building owned by the mayor received $10,000 each
• Three businesses owned by the mayor or her family received a total of $50,000 across 3 grants
• The Real Estate Gallery, a business owned by Espinosa's husband, received $15,000.
• The Kissimmee Diner received $15,000. That business closed five months after receiving the funding. A new business has since opened there.
• Andanse LLC., owned by the mayor and leased by her and a family member, received $20,000.

No one answered the door at the mator's  million-dollar home either, despite a Porsche, Tesla, Dodge Ram, and Ford Focus parked in the driveway.

Multiple ethics investigations

In June, a court-appointed special prosecutor said it found probable cause that Espinosa had likely violated ethics law by applying for grants through the Business Boost 2.0 program, and recommended Kissimmee City Commissioners consider filing articles of impeachment against her.

In August, the Kissimmee City Commission voted not to file articles of impeachment.

In September, the Florida Commission on Ethics said it found probable cause of potential ethics violations against Espinosa, which would then be considered at an evidentiary hearing.

The other side:

Migdalia Perez, of Perez Lasure Law, who represents Jackie Espinosa, released the following statement to FOX 35 shortly after her arrest:

"My office represents Mayor Espinosa and what I can tell you at this juncture is that Mayor Espinosa maintains her innocence. This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money.

The prosecution must establish that the mayor acted with criminal intent. We firmly maintain that she did not. There is a fundamental difference between an alleged ethics violation and a criminal offense. The State cannot transform one into the other without proving every element of a crime beyond a reasonable doubt.

We intend to challenge these allegations vigorously in court. Mayor Espinosa deserves the presumption of innocence, not a presumption of guilt because she has been arrested."

Spokesperson for the City of Kissimmee and the Kissimmee Police Department deferred to the Florida Department of Law Enforcement (FDLE).

Who is running the City of Kissimmee?

What's next:

The City of Kissimmee released a statement Wednesday outlining updates regarding Mayor Jackie Espinosa’s position on the City Commission and ongoing city operations. 

Vice Mayor Angela Eady will assume mayoral duties during City Commission meetings and ceremonial events when Espinosa is absent. The city said Espinosa will retain her seat on the commission unless she is suspended, removed from office or resigns. City operations will continue as usual, while officials have launched an internal investigation into the Business Boost 2.0 program.

Espinosa is scheduled to return to court Dec. 1 for a pretrial conference, according to the report. Her attorneys are also expected to appear before the Florida Commission on Ethics for a hearing concerning the same allegations.

The criminal case and ethics proceedings remain ongoing.

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