U.S. News
A Former Police Chief Stole $85,500 From Informant Funds and a Children’s Program to Feed a Gambling Addiction
By Mike Harper · August 5, 2026
He was the only person with access to the account. He bet $4.4 million on DraftKings and FanDuel in a single year.
Former New Haven Police Chief Karl Jacobson appeared in court Tuesday on two counts of first-degree larceny after prosecutors alleged he embezzled $85,500 from two city funds — including money designated to pay confidential informants in narcotics investigations and a fund that runs children’s summer camps and basketball clinics.
The case, which has been continued until September 14, centers on financial irregularities that came to light in January when three assistant chiefs confronted Jacobson about discrepancies in the department’s Narcotic Enforcement Program Fund. Jacobson initially admitted to taking $10,000. The actual figure was far higher.
The investigation revealed that $81,500 was unaccounted for or misappropriated from the informant fund between January 2024 and January 2026. Bank records showed department checks deposited directly into Jacobson’s personal checking account. An additional $4,000 was taken from the New Haven Police Activity League Fund — a program funded by donations from businesses, residents, and automatic deductions from officers’ paychecks — in the two days before Christmas 2025.
The scale of Jacobson’s gambling was staggering. A search warrant revealed that between January 2025 and January 2026, he placed $4,464,884 in bets on DraftKings and FanDuel and suffered a net loss of $214,365. During the same period, he made 1,366 transfers from his personal checking account to the gambling platforms, totaling $373,855. His salary as police chief was approximately $180,000 a year.
When confronted, Jacobson told his acting chief: “It is not that I’m a bad person. I have a problem. I fixed my alcohol problem. I turned to gambling. I don’t know why it just got worse recently.”
Hours after the confrontation, Jacobson retired — before the department could place him on administrative leave. He later returned the $4,000 taken from the Police Activity League by making a cash deposit. He pleaded not guilty in April and opted for a jury trial.
Prosecutors said additional charges could be filed as they continue reviewing bank records.
“An allegation of embezzlement by a police official is a serious matter and potentially undermines public confidence in the criminal justice system.” Chief State’s Attorney Patrick Griffin said.
The informant fund he stole from was used to pay people who risked their safety to help police investigate drug crimes. The children’s fund he stole from was built partly from officers’ own paychecks. Neither was designed to finance $4.4 million in sports betting.