New Haven Chief Police Arrested For Embezzling Funds To Fuel Gambling Habit

Karl R. Jacobsen, the former police chief of New Haven, Connecticut, was arrested on Friday for embezzling funds to fuel his gambling habit. Jacobsen admitted to misusing funds as a way to compensate for his gambling losses, but wanted police to cover up his theft and allow him to retire with his pension.

An investigation revealed Jacobsen wagered almost $4.5 million at FanDuel and DraftKings over the last year, losing over $200,000. He began dipping into police funds as early as 2019. He retired from his position last month when the investigation came to light.

In total, he is accused of stealing $85,500, with the majority coming from a fund to pay confidential informants in drug cases, according to prosecutors.

Jacobsen Pleaded With Police Not To Reveal Embezzlement

When fellow police officers confronted Jacobson in January, he “admitted to spending too much money on gambling,” but claimed it had only worsened in the last few months.

He said he had only taken tens of thousands of dollars and pleaded for the chance to “fix the logbook, and then retire.”

An application for his arrest warrant noted, “Chief Jacobson stated that he was embarrassed and asked them for an opportunity to avoid potentially going to jail and losing his pension for misusing government funds.”

He said his gambling problem had worsened as he tried to deal with alcohol problems. He stated, “I fixed my alcohol problem. I turned to gambling. I don’t know why it just got worse recently.”

Police were alerted to Jocobsen’s embezzlement by one lieutenant who reported that when he requested funds to pay informants, the former chief gave him $2,000. Then, Mr. Jacobson took back $1,000 and left the lieutenant an I.O.U. However, Jacobson never returned the money. The lieutenant eventually paid the informants out of his own funds due to the reported shortage, according to local news.

He also wrote himself checks from the police’s bank accounts, totaling $70,000, as well as using the Police Activity League (PAL) fund. He made 1,366 transfers from his personal bank account to DraftKings and FanDuel, totaling $373,855. Of this, he lost $214,000.

Sad Day For New Haven, Says Mayor

Mayor of New Haven, Justin Elicker, released a statement in response to Jacobsen’s arrest, writing, “It’s a sad day for the City of New Haven. Former Police Chief Jacobson was someone whom many in our city deeply respected and who dedicated his life to helping keep our community safe.”

Connecticut has warned residents about getting involved in sportsbook scams, with the state’s Department of Consumer Protection Gaming Division (DCP) saying anyone using their betting accounts for fraudulent activity risks arrest.

Elicker also stressed that no one is above the law. He added, “(N)o one is above the law, and that includes the chief of police. The theft and misuse of taxpayer funds was not only a crime but also a breach of public trust for which former Chief Jacobson must be held accountable.”

Although Jacobson has admitted to the misuse of funds, his lawyer urged the public to withhold judgment as the case develops. He stated, “I have yet to receive any discovery from the state, so I cannot respond to the specific allegations, but I will remind everyone that an arrest is not evidence of guilt and allegations are not proof. This is the beginning of a very long process. I urge everyone to keep an open mind and avoid a rush to judgment.”

Other police officers have been accused of using their position to cover gambling losses. In the UK, an officer was jailed last year after attempting to blackmail a suspected paedophile to fuel her gambling habit.