Former New Haven Police Chief Karl Jacobson was arrested Friday on larceny charges after authorities alleged he stole $85,000 from two city funds, prosecutors said.

Karl Jacobson, who stepped down from the department in January, turned himself in on an arrest warrant and was later released on a $150,000 court-set bond. He faces two counts of larceny tied to alleged fraud involving public funds.

“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 J. Griffin said in a statement.

Jacobson’s lawyer, Gregory Cerritelli, said in a statement provided to Fox News Digital that he couldn’t respond to the specific allegations, but noted that “an arrest is not evidence of guilt and allegations are not proof.”

“This is the beginning of a very long process,” he stated. “I urge everyone to keep an open mind and avoid a rush to judgment.”

New Haven Mayor Justin Elicker called the allegations “shocking” during a news conference, and he said the former police chief had at first only admitted taking $10,000 from one account.

“We didn’t know how deep this went,” Elicker said, adding that the arrest warrant outlined that Jacobson had “severe issues” with gambling.

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“It’s a very sad day for the city to see a chief, who was beloved by so many people, arrested for a theft of public money and also money that was intended for children,” Elicker said.

Last month, Elicker announced Jacobson’s retirement, saying the former chief acknowledged taking money from a city fund used to pay confidential informants who assist in narcotics investigations, according to The Associated Press.

Elicker also said the former chief had confessed to taking the funds for personal use after being confronted by three of his deputies over financial irregularities.

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The State’s Attorney’s Office said the investigation revealed that $81,500 was unaccounted for or misappropriated from the New Haven Police Department Narcotic Enforcement Program Fund between Jan. 1, 2024, and Jan. 5, 2026. 

Bank records show that department checks were deposited into Jacobson’s personal checking account, prosecutors said.

Investigators said they also found two checks totaling $4,000 were allegedly embezzled from the New Haven Police Activity League Fund in December 2025.

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Jacobson was a member of the department for 15 years before serving a three-year stint as police chief.

Fox News Digital reached out to Jacobson’s attorney for comment.

The Associated Press contributed to this report.

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