The charges stem from Kissimmee’s Business Boost 2.0 program, which used federal American Rescue Plan Act funds to provide one-time assistance to eligible small businesses. Investigators allege Espinosa helped create the program and then applied, along with immediate family members, for grants benefiting three businesses they owned or controlled.

The arrest affidavit says 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. The applications were approved Nov. 4, 2025, and the funds were deposited three days later, according to the affidavit.

The state alleges Espinosa did not return the money after the city attorney told her on Dec. 5 that accepting the grants presented a prohibited conflict of interest. The charges include 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.

Authorities took Espinosa into custody shortly after 8 a.m. Wednesday as she drove from her home, then booked her into the Osceola County Jail. Florida Attorney General James Uthmeier announced the arrest.

Espinosa pleaded not guilty. Her attorney, Migdalia Perez, said the mayor maintains her innocence and intends to contest the case. Perez described the grants as part of a publicly approved program administered by city staff and said Espinosa denies acting with criminal intent.

The case raises questions about oversight and conflicts of interest in the use of public relief funds intended to support small businesses. The allegations have not been proven in court.