Poker Writer
The former New Haven, Connecticut, police chief was arrested and accused of embezzling more than $85,000 in public funds, mostly for gambling on DraftKings and FanDuel. Karl Jacobson admitted to having a gambling issue that he said caused him to embezzle funds intended for public defense.
Jacobson told local New Haven news:
…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.
The arrest warrant for Jacobson stated that he wagered about $4.5 million on sports betting apps. The betting occurred over the course of a year. He won about $4.2 million, leaving a net loss of $214,000.
New Haven Mayor Justin Elicker stated that it was a sad day for the city of New Haven, given that someone who had dedicated his life to keeping the community safe had committed such an act. He also guaranteed that new protocols would make sure something like this did not happen again:
With the new policies and protocols that we have now put in place, our residents and officers can be confident that funds allocated for the police department’s Confidential Informant program will be properly safeguarded and properly used to investigate and solve crimes and to identify criminals and bring them to justice.
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An Abrupt Retirement Explained
This news explained why Jacobson abruptly retired from the New Haven Police Department on Jan. 5 at the age of 55. The Branford, Connecticut, native had sole authority to receive and disburse money from the confidential informants’ fund.
The now disgraced police chief had made additional funding requests at the end of December to repair a damaged door. He also obtained a personal loan. Fellow members of the New Haven police department raised suspicion about Jacobson when he dispensed $2,000 from the confidential informants’ fund to a lieutenant. He took back half of that money, never returned it, and left the lieutenant an “IOU” note.
One of Jacobson’s co-workers for several years, Leonard Jahad, was particularly hurt by Jacobson stealing from the police athletic league. That money funds recreation and camaraderie for police:
To take funds from the police athletic league, that was even more disheartening. We did some phenomenal work in the community … but I do hope that [Jacobson] does get the help that he needs.
Gambling Addiction Plaguing Public Funds
There has been an alarming rise in stories like this one, in which authorities have caught a figure in charge of public or company funds spending them frivolously on gambling. Such scandals have rocked even volunteer firefighter funds.
The New Haven police department, which spearheaded this investigation, included warnings about the dangers of gambling addiction while announcing the arrest of Jacobson. They made sure to outline how gambling addiction can slowly overtake a person’s life, even when they think that they have it under control.
Local industry experts also pointed to the ease of access to apps such as DraftKings and FanDuel. Another noted factor was the volume of gambling ads, which has eased the stigma that once surrounded betting.
“The sheer frequency of betting opportunities has allowed people to overextend themselves,” said Paul Tarbox, director of public policy with the Connecticut Council on Problem Gambling.
