By Tiffany Williams –
MONTVILLE, Conn. — A former big-city police chief now stands accused of stealing from his own department — and investigators say money intended for confidential informants and youth programs instead fed what authorities describe as a massive online gambling spiral.
On Friday at approximately 11:36 a.m., former New Haven Police Chief Karl Jacobson turned himself in to Connecticut State Police at Troop E in Montville. He was arrested on two counts of Larceny in the First Degree under Connecticut General Statutes § 53a-122(a)(3), following a months-long investigation into allegations that he embezzled City of New Haven funds.
Jacobson was processed and released after posting a $150,000 surety bond set by the court. He is scheduled to appear at New Haven Superior Court (GA-23) on March 6, 2026.
The felony arrest warrant was drafted and secured by Lt. Sebastian Wordell of the Connecticut Department of Emergency Services and Public Protection, Division of State Police.
At the center of the investigation is the New Haven Police Department’s Narcotic Enforcement Program (NEP) fund — a pool of city-allocated money used primarily to pay confidential informants during narcotics investigations. According to the arrest warrant affidavit, Jacobson had sole control over the receipt, custody, and distribution of those funds and maintained the official transaction log.
The case began to unravel in late December 2025.
According to investigators, Acting Chief David Zannelli alerted authorities after discovering that informant payments for November and December had not been made. Officers who relied on informants for active narcotics investigations reported that funds were unavailable.
When questioned internally, Jacobson allegedly provided Lieutenant Werner with $2,000 intended for informant payments — but then removed $1,000 from that amount, leaving behind a handwritten IOU note that read: “Took $1,000.00 12/23/25 Chief acobson.”
Investigators say Sgt. Sanchez ultimately paid informants out of his own pocket due to the shortage in funds.
On January 5, 2026, Jacobson was confronted by assistant chiefs during a recorded meeting. According to the warrant summary, Jacobson admitted that he had spent too much money on gambling and had misused department funds, stating he intended to replace the money.
When asked whether any money remained in the NEP fund, Jacobson allegedly responded, “No.”
When asked how much was missing, he responded, “Ten thousand.”
Investigators later subpoenaed bank records that showed two NEP checks for $5,000 each — totaling $10,000 — were deposited into Jacobson’s personal checking account on December 1 and December 18, 2025.
The investigation quickly broadened beyond the initial $10,000 admission.
Authorities say Jacobson also deposited two checks drawn from the New Haven Police Activity League (PAL) account — one for $1,000 and another for $3,000 — both written out to him on December 23, 2025. The memo lines on those checks read “Toy Give Away” and “Toy Drive.” Both checks were deposited into his personal account.
On January 16, 2026, a $4,000 cash deposit was made back into the PAL account.
A forensic audit of NEP funds revealed significantly larger discrepancies.
According to investigators, Jacobson cashed fourteen $5,000 NEP checks in 2025, totaling $70,000. Of that amount, only $23,000 was documented as distributed to the Intelligence Unit. That left $47,000 unaccounted for in 2025 alone. When combined with the $4,000 associated with PAL funds, authorities identified $51,000 in unaccounted or misappropriated funds for 2025.
The review extended into 2024.
Investigators determined that Jacobson cashed $65,000 in NEP checks during 2024. Approximately $30,500 of that amount was documented as distributed, leaving roughly $34,500 unaccounted for.
In total, authorities allege that $85,500 in NEP and PAL funds from 2024 and 2025 were misappropriated or remain unaccounted for. Only $14,000 was located in Jacobson’s personal checking account before being transferred elsewhere.
Search warrants were executed on DraftKings, FanDuel, and Fanatics to examine Jacobson’s gambling activity between January 1, 2025 and January 5, 2026.
The data revealed extensive online wagering activity.
On DraftKings, investigators reported total wagers of $1,346,349.81 with winnings of $1,290,789.17 — resulting in a net loss of $55,560.64.
On FanDuel, total wagers were reported as $3,118,534.45, with winnings of $2,959,729.35 — resulting in a net loss of $158,805.10.
Combined, the two platforms reflected millions of dollars in betting activity and over $214,000 in net gambling losses during the period reviewed.
Bank records further showed 1,366 transfers from Jacobson’s personal checking account to DraftKings and FanDuel totaling $373,855 over a span of 373 calendar days. Jacobson’s annual salary as Chief of Police was approximately $180,000.
According to the warrant affidavit, when asked during the recorded meeting how long the gambling had escalated, Jacobson stated it had worsened over the past couple of months.
When told that colleagues had never seen him gambling, Jacobson reportedly tapped his phone and said, “It’s on the app.”
Investigators stated in the affidavit that the probe has not revealed any indication that additional New Haven Police Department personnel assisted or acted as co-conspirators.
The charges filed — Larceny in the First Degree — allege theft of property valued at more than $20,000.
The Connecticut Department of Emergency Services and Public Protection continues to lead the investigation. Authorities have not indicated whether additional charges could be forthcoming as financial records continue to be reviewed.
Jacobson’s next court appearance is scheduled for March 6, 2026, at New Haven Superior Court.
The case has sent shockwaves through law enforcement circles in Connecticut, as the allegations involve funds designated for confidential informants — a critical tool in narcotics enforcement — and youth programming tied to the Police Activity League.
As of now, Jacobson is presumed innocent unless and until proven guilty in a court of law.
The investigation remains ongoing.