Santa Barbara County Sheriff’s Office arrests second custody sergeant over overtime fraud

Santa Barbara County Sheriff’s Office custody sergeant Jeffrey Koeller was arrested on Thursday on charges of embezzlement, grand theft and forgery after allegedly claiming about $93,000 in overtime pay for hours he did not work at the Northern Branch Jail. The arrest follows the January arrest of former custody sergeant Segun Ogunleye, who is accused of falsifying timecards to obtain more than $175,000 in overtime compensation.

Sheriff Bill Brown said the investigations reviewed 688 timecards and identified only Koeller’s as suspicious, prompting a second criminal investigation. Both officers have been placed on administrative leave, and the Sheriff’s Office has introduced enhanced oversight and review controls to prevent similar misconduct.

The case highlights ongoing concerns about payroll fraud within the county’s custody operations and the department’s efforts to restore public trust.