It's from the fourth episode of the first season of Breaking Bad. Here it is:
Policeman: Anyway, say hello to Domingo Gallardo Molina.
A.k.a. Krazy-8. Way smarter than your average cheese eater.
I turned him out when he was street level,
but this dude's like The Jeffersons,
moving on up.
To "turn someone out" in police/underworld/deviant slang can mean to make that person change roles or loyalties in a significant and relevant way. Gay people use it to discuss seducing someone formerly identifying as straight, and in a police context, including this one, to "turn out" a criminal is to recruit that person as a police informer.
