A Florida mayor was arrested Wednesday on theft and fraud charges alleging that she illegally enriched herself and family members through a COVID-19 small business relief program launched under her administration, according to the state's attorney general.

Kissimmee Mayor Jackie Espinosa is being charged with grand theft, a second-degree felony, and organized scheme to defraud, a first-degree felony, according to Florida Attorney General James Uthmeier.

Espinosa is accused of improperly appropriating $50,000 in funds through the city's Business Boost 2.0 program, according to the arrest warrant.

"This is the local government equivalent of insider congressional stock trading," Florida's chief financial officer, Blaise Ingoglia, said during a press briefing on Wednesday.

An audit of COVID-19-related grant programs by Ingoglia's office found that three businesses owned or controlled by Espinosa or members of her immediate family allegedly received $50,000 in grant funds through Kissimmee's Business Boost 2.0 program, according to the warrant. The businesses include a dance production studio, a diner and a real estate company, according to the warrant. She and her family members allegedly applied for the grants on the day applications opened in September 2025, according to the state attorney general's office.

"The evidence makes very clear that there was intent to engage in this conflict of interest that ultimately abused her office to enrich herself," Uthmeier said. "Mayor Espinosa demonstrated an intent to create, streamline and simplify, reduce oversight of and more easily enable a process whereby herself and immediate family could apply for and receive city funds to which she was not entitled."

Espinosa's attorney said the mayor "maintains her innocence" and that they plan to challenge the allegations "vigorously in court."

"This case involves a publicly approved grant program administered by City staff, not a secret scheme to steal taxpayer money," her attorney, Migdalia Perez, said in a statement to ABC News.

"The prosecution must establish that the mayor acted with criminal intent. We firmly maintain that she did not," Perez said. "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."

Espinosa, 58, was booked Wednesday morning into the Osceola County Jail under her full name, Eva Jacqulyn Espinosa, online jail records show.

She faces up to 30 years in prison if convicted as charged, officials said.

Espinosa has served as the mayor of Kissimmee since November 2024. Her term ends in 2028.

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