A second Santa Barbara County Sheriff’s Office custody sergeant has been arrested on suspicion of timecard fraud related to overtime pay. 

County officials have been reviewing timecards as part of an investigation into high overtime costs at the Sheriff’s Office, particularly for custody operations at the two jails. 

The Sheriff’s Office arrested Sgt. Jeffrey Koeller Thursday on suspicion of embezzlement by a public officer, grand theft, and forgery for alleged fraudulent timecard activity, spokesperson Raquel Zick said. 

He allegedly claimed and received more than $93,000 of compensation for time he did not work while serving at the Northern Branch Jail. 

Koeller, 39, was booked into the San Luis Obispo County Jail, and remained in custody as of Thursday afternoon. 

He was booked into the SLO facility for safety since he worked at the Northern Branch Jail, Zick said.

Koeller was hired in December 2013 and he was promoted to custody sergeant in 2021, according to the Sheriff’s Office. 

This arrest follows the January arrest of Custody Sgt. Segun Ogunleye, 34, who faces criminal charges for allegedly falsifying timecards and stealing more than $175,000 in overtime pay for shifts he did not work. 

“Following that arrest, the Sheriff’s Office conducted an extensive review of 688 timecards containing overtime entries,” Zick said. “That review identified only one additional timecard with any significant anomalies, leading investigators to open a second criminal investigation that resulted in this arrest.”

Both men were placed on administrative leave following their arrests. 

The Sheriff’s Office has implemented more oversight measures to “help prevent any similar misconduct,” Zick said. 

Sheriff Bill Brown said Koeller’s actions “betrayed the public’s trust and our agency.”

He added, “They do not reflect the character of our Sheriff’s Office, or the honest work performed every day by our employees. 

“The overwhelming majority of our personnel are dedicated public servants of impeccable integrity who serve lawfully and with honor. If one of our own violates the trust that has been placed in them, we will investigate thoroughly and hold them accountable to our policies and the law.

“Furthermore, we will identify any supervisory shortcomings or blind spots and strengthen our systems to prevent any such misconduct from happening again. That is exactly what we are doing in this case.”

Overtime Cost Investigations

The county Board of Supervisors has asked for audits and regular reports on overtime spending for the Sheriff’s Office, which reached about $20 million each of the past two years. 

The Civil Grand Jury investigation found that a lack of oversight and operating two jails were driving overtime costs. 

Undersheriff Brad Welch told the supervisors in April that the Sheriff’s Office has worked to reduce overtime hours by decreasing mandatory overtime shifts at the jails and capping the number of supervisors per shift, among other things. 

The office introduced paper overtime sheets, and supervisors have to review and sign them to make sure the shift is needed for regular operations, Welch said.