I found an article from RightWingWatch claiming that the former Maricopa County Sheriff Joe Arpaio is being considered by Trump's administration for the Secretary of the Department of Homeland Security (along with Sheriff David Clarke of Wisconsin).
Donald Trump’s transition team is reportedly considering Milwaukee County, Wisconsin, Sheriff David Clarke and outgoing Maricopa County, Arizona, Sheriff Joe Arpaio as possible nominees to head up the Department of Homeland Security.
The article uses this Politico article as a source, which makes absolutely no mention of Joe Arpaio, only David Clarke, a Milwaukee sheriff. (see subheading of article titled "Homeland Security secretary")
Lots of other news sources have taken this and run with it, including countless AZ-local news sites (KTAR Radio, 12 News, azfamily) and the Washington Post.
I also found an Arizona-local source from AZCentral that explicitly states:
A name straight out of Arizona's controversial immigration past has popped up on President-elect Donald Trump's transition team.
It's not former Gov. Jan Brewer or outgoing Maricopa County Sheriff Joe Arpaio ...[sic] at least not yet.
...except the transition team is different from Homeland Security, so it's unclear whether this excludes the possibility.
EDIT: I found an article from ABC News that has a list of potential cabinet members, but I can't figure out whether this is speculation or verifiable statements.