Stanley Davis, a supervisor with the city's water utility, was taken into custody Wednesday, the day he was to be sentenced.
While the judge agreed to postpone Davis' sentencing for a third time, he ruled Davis' bail would be revoked.
When he pleaded guilty in January, the 51-year-old Davis admitted he twice had Trenton Water Works crews perform side jobs at private homes in Trenton in 2010. The work was done with city equipment while the crews were being paid by the city.
Prosecutors say Davis and the workers also received emergency overtime pay.
Davis has said his brother had nothing to do with the scheme.