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Former New Haven Police Chief Karl Jacobson was arrested Feb. 24 on charges of misappropriating department funds. According to a state arrest warrant, Jacobson allegedly used the money to cover losses stemming from extensive online sports betting.
The arrest marks a dramatic turn for a senior law enforcement leader who once held broad responsibility for city policing and oversight. Jacobson faces two counts of first-degree larceny by defrauding a public community.
Investigators allege he diverted approximately $85,500 from police accounts designated for confidential informant operations and youth programs.
Jacobson was released after posting a $150,000 bond and is due in New Haven Superior Court on March 6.
The gambling trail and informant fund irregularities
State police say Jacobson wagered about $4.46 million from January 2025 through January 2026 via state-approved betting operators DraftKings and FanDuel. While he saw $4.25 million in winnings, the warrant indicates he ultimately lost more than $214,000 overall. Investigators describe the alleged theft not as an accounting error, but as a desperate effort to cover those personal losses.
The first sign of trouble came from within the department. Acting Police Chief David Zannelli told investigators he received a call Dec. 23, 2025, from Sgt. Francisco Sanchez of the Intelligence Unit, who reported that funds needed to pay confidential informants for November and December were missing.
According to the warrant, Jacobson controlled these funds and managed the transaction logs. Suspicion grew when Sanchez learned Jacobson had provided money to a lieutenant, only to later reclaim it from the officer’s office, leaving behind “IOU” notes. One note quoted in the warrant reads: “Took $1,000.00 12/23/25 Chief Jacobson.” Sanchez reportedly ended up paying informants with his own money because of the shortage.
Admissions of gambling addiction and youth fund misuse
During a January confrontation with assistant chiefs, Jacobson allegedly admitted to a gambling addiction. “I have a problem,” he reportedly told them, adding that his addiction had shifted from alcohol to gambling and had worsened. Investigators later found a pattern of withdrawals averaging $5,000 a month dating back to July 2019.
The investigation further revealed that Jacobson allegedly targeted the Police Activity League (PAL), a program for youth sports. The affidavit describes two checks totaling $4,000 from a PAL “toy drive” account that were deposited into Jacobson’s personal bank account in late 2025. Though that money was eventually returned, it contributed to the broader larceny charges.
In total, authorities say $81,500 remains unaccounted for from the informant fund between 2024 and 2025. They have found no evidence that other officers participated in the alleged theft.
The early retirement of a police veteran
As reported by the New Haven Independent, Jacobson abruptly retired Jan. 5, following the internal confrontation. His attorney, Gregory Cerritelli, noted the case is in its early stages and urged the public not to treat the allegations as proof of guilt.
