KISSIMMEE, Fla. — Kissimmee Mayor Jackie Espinosa pleaded not guilty Wednesday to grand theft and organized scheme to defraud charges involving $50,000 in city grants awarded to family businesses.
Her attorney, Migdalia Perez, filed the written plea, waived arraignment and requested evidence from prosecutors following Espinosa’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.
An arrest affidavit also details internal concerns about the applications, including a city employee’s request for legal guidance before the grants were approved.
Employee asked for legal review
According to the affidavit, Yolanda Claudio, an employee reviewing applications for Kissimmee’s Business Boost 2.0 program, noticed three applications involving Espinosa’s businesses in September 2025.
On Sept. 18, Claudio emailed Economic Development Director David Rodriguez asking him to obtain verification from the city attorney before she proceeded.
Claudio questioned whether one owner could receive grants for multiple businesses and whether the mayor’s participation created a conflict of interest, investigators wrote.
The affidavit says Rodriguez responded to the question about multiple businesses but did not resolve the conflict question. Claudio told investigators she stopped reviewing the applications because she wanted confirmation that they could be processed.
Director approved applications
Rodriguez told investigators he reviewed and approved the applications because the program contained no specific guideline preventing Espinosa from applying, according to the affidavit.
He said he believed it was the mayor’s responsibility to check with the city attorney about a potential conflict. Investigators wrote that he did not contact the city attorney about that issue.
The former city attorney, Olga Sanchez de Fuentes, told investigators her department had not been consulted about the program’s application criteria or the completed applications.
The affidavit says the program did not require applicants to submit a conflict-of-interest form.
Three businesses received $50,000
Investigators identified three grant awards to businesses owned or controlled by Espinosa and her family:
- Adanse LLC received $20,000.
- Kissimmee Diner Inc., which operates as Matador Tacos & Tapas, received $15,000.
- The Real Estate Gallery LLC received $15,000.
The applications were approved Nov. 4, 2025, according to the affidavit. Investigators said bank records confirmed the funds were deposited Nov. 7.
The awards were part of the first $255,000 distributed through the program, investigators wrote.
Warning to mayor followed payments
The affidavit says Sanchez de Fuentes notified Espinosa on Dec. 5, 2025, that receiving the grants created a prohibited conflict of interest.
Investigators allege Espinosa declined to return the money after being advised to do so.
City Manager Michael Steigerwald told investigators he also recommended that Espinosa return the funds and issue a statement. According to the affidavit, Espinosa argued she should be eligible because she was a local business owner.
The documented warning to Espinosa came after the payments. Claudio’s internal questions about the applications came before approval.
Attorney disputes criminal intent
Perez said the mayor maintains her innocence.
“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 is distinct from 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.
The affidavit presents investigators’ allegations, which have not been proven in court.
Channel 9 has followed grant investigation
9 Investigates previously reported that a special prosecutor found probable cause to pursue Espinosa’s impeachment over allegations involving the grants.
Espinosa remained mayor Wednesday afternoon, with the city’s succession process not invoked at the time of Channel 9’s reporting.
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