Kissimmee Mayor Pays $2,000 Fine After Grant Fraud Arrest

The Florida Commission on Ethics voted unanimously on Friday to impose a $2,000 civil fine and a public reprimand on Kissimmee Mayor Jackie Espinosa. The decision resolves a complaint regarding pandemic-era business relief funds directed to the mayor and her relatives. Under the joint resolution agreement, Espinosa will also be formally censured for violating Section 112.3137 of the Florida Statutes. The commission cited her employment and contractual relationships with entities doing business with her agency.

This ethics ruling came days after law enforcement arrested Espinosa early Wednesday on charges of grand theft and fraud. The criminal case involves $50,000 in grants awarded under the City of Kissimmee's Business Boost 2.0 program. The Florida Attorney's Office and the Florida Department of Law Enforcement allege that Espinosa helped create and expand the program while serving as mayor. They state she sought grants for businesses linked to herself or her family and ignored ethical concerns raised by city staff.

An arrest affidavit details the distribution of the funds. Four businesses renting space in a building owned by the mayor each received $10,000. Three additional grants totaling $50,000 went to businesses owned by Espinosa or her family. Her husband’s business, The Real Estate Gallery, received $15,000. The Kissimmee Diner, which closed five months after receiving its $15,000 grant, has since been replaced by a new tenant. Andanse LLC, a company owned by the mayor and leased by her and a family member, received the remaining $20,000.

Espinosa was released from jail on Thursday night after posting a $70,000 bond. Reporters gathered outside the facility to hear her brief statement. She told the crowd, "What I want people to know is what happened yesterday requires all of us to go out and vote November 3rd. That’s what I want to say and to the constituents of Kissimmee, we will be okay." The mayor and her husband had not responded to media requests for comment on the arrest or the allegations.

Lillian Evans, one of three individuals who filed formal ethics complaints against the mayor, argued that the $2,000 fine was too lenient. She submitted a letter to the commission prior to the hearing and attended the session on Friday. A commissioner cut off her attempt to speak during the meeting. Evans told reporters afterward that she felt relief upon hearing about the arrest. She said, "I felt that we were actually getting what the City of Kissimmee deserves. Somebody that took money from the City of Kissimmee from our people, and she needs to pay for what she did."

The City of Kissimmee stated that Espinosa remains mayor unless she is suspended, removed, or resigns. A city spokesperson noted that the charter does not specifically outline procedures for when a sitting mayor is arrested. Governor Ron DeSantis holds the power to remove an elected official from office and has exercised that authority in the past. His office has not yet announced a decision regarding Espinosa’s position.