Second Santa Barbara Sheriff’s Office Deputy Arrested for Alleged Time-Card Fraud 

For the second time in less than a year, a Santa Barbara County Sheriff’s Office (SBSO) deputy has been booked into jail on charges related to alleged time-card fraud. Custody Sergeant Jeffrey Koeller turned himself in to authorities on Thursday, facing felony charges after an internal audit reportedly revealed he was compensated for over $93,000 in hours he did not work.

The arrest marks another significant blow to the department as it continues to grapple with the fallout of a wider investigation into payroll abuses within its custody facilities.

A Second Sergeant Behind Bars

Koeller, who was assigned to the Northern Branch Jail in Santa Maria, surrendered to the Santa Maria Substation on Thursday following the issuance of an arrest warrant. According to the Santa Barbara Independent, he was subsequently transferred and booked into the San Luis Obispo County Jail.

He faces serious criminal charges, including embezzlement by a public officer, grand theft, and forgery. In addition to the criminal proceedings, Koeller has been placed on administrative leave as the Sheriff’s Office conducts an ongoing internal investigation into his conduct.

The alleged fraud is not an isolated incident. Koeller’s arrest stems from a comprehensive, county-wide review of sheriff's office payroll and overtime practices initiated following a high-profile arrest earlier in the year.

Uncovering the Alleged Fraud

The genesis of the current scandal dates back to January, when Custody Sergeant Segun Ogunleye was taken into custody on similar charges. Ogunleye, who worked at the Santa Barbara County Jail and oversaw overtime allotment, was accused of taking home an additional $175,000 through falsified time cards. He currently faces 114 counts of misappropriation of public funds, grand theft, false entries in records, and money laundering. He has pleaded not guilty to the charges.

Ogunleye’s arrest prompted the SBSO to launch a sweeping review of its internal payroll practices. Investigators combed through a staggering 688 timecards containing declared overtime hours. According to the department, Koeller’s submissions were the only ones flagged as suspicious during this extensive audit, leading to a secondary criminal investigation and his eventual arrest this week.

Impact on Public Trust and Taxpayer Funds

For Santa Barbara residents, the arrests highlight a significant breach of public trust, as well as a substantial loss of taxpayer dollars. The combined alleged fraudulent payouts for just these two sergeants total more than a quarter of a million dollars—money allocated from the county budget meant to compensate deputies genuinely working shifts to maintain safety in the county's jails.

Sheriff Bill Brown addressed the situation directly, stating that the employee’s actions betrayed the public’s trust and the agency. Brown was quick to separate the actions of the accused individuals from the broader workforce. The alleged misconduct "does not reflect the character of our Sheriff’s Office, or the honest work performed every day by our employees," Brown said.

The nature of the charges against both sergeants is particularly alarming given their supervisory roles. As a custody sergeant, Koeller held a position of authority, making the allegations of forging time entries a serious violation of the department's internal checks and balances.

Next Steps and Department Reforms

As Koeller navigates the criminal justice system, the Santa Barbara County Sheriff’s Office is working to reform its internal processes to prevent similar breaches in the future. The department stated that it has already implemented enhanced internal review controls and new oversight measures.

These updated protocols are specifically designed to strengthen accountability within the ranks and overhaul the way timecards are reviewed and approved by supervisors. The goal, according to the department, is to close the loopholes that allegedly allowed hundreds of thousands of dollars to slip through the cracks unnoticed.

While the administrative investigation into Koeller remains ongoing, local legal observers will be closely watching how the criminal proceedings unfold in San Luis Obispo County. Meanwhile, the South Coast community is left waiting to see if the newly implemented oversight measures will be enough to restore faith in the oversight of its local law enforcement payroll.