Former Union President Admits Stealing $290K Over 12 Years

This article summarizes the guilty plea of a long-serving union leader who admitted to taking more than $290,000 from his union over a span of years, the charges he faces, the agencies involved, and the scheduled timeline for sentencing.

Kye Carbone, 69, from Athens, New York, admitted on June 22 to multiple federal counts tied to fraud and theft from a labor organization. He served as president of United Federation of College Teachers Local 1460, representing Pratt Institute faculty, for a lengthy period. Prosecutors say the scheme ran for years and ended with his removal from office in 2023.

Authorities allege Carbone took more than $290,000 from the union between 2011 and 2023 and spent the money on personal expenses, dining, and travel. Federal prosecutors charged him with three counts of wire fraud and three counts of theft from a labor union. The indictment and plea outline a pattern of misuse of union funds while he held a position of trust.

Officials announced the plea through the U.S. Attorney’s Office and the Department of Labor offices that oversee labor-management standards and inspector general investigations. First Assistant United States Attorney John A. Sarcone III, Anthony P. D’Esposito of the DOL Office of Inspector General, and Erica Weber of the DOL Office of Labor-Management Standards were named in the public notice. Those agencies coordinated the investigation that led to Carbone’s plea.

“Unions exist to protect and uplift their members, yet this defendant chose greed over duty, stealing from the very people he was entrusted to serve,” said First Assistant U.S. Attorney John A. Sarcone III. “I commend our investigative partners at DOL‑OIG and DOL‑OLMS, whose diligent work brought Mr. Carbone to justice. Let this serve as a warning: if you steal from hardworking Americans, the United States government will find you and hold you accountable.”

The wire fraud counts carry serious maximum penalties: up to 20 years in prison per count, a maximum fine of $250,000 per count, and potential supervised release after any prison term. The theft-from-union charges include embezzlement provisions that carry their own penalties, including up to five years in prison per count and fines. These statutory maximums represent the top end of punishment; actual sentences depend on judicial decisions and sentencing guidelines.

Carbone’s guilty plea was accepted by the Honorable Anne M. Nardacci, and the case will move to sentencing later this year. Sentencing is scheduled for October 20, 2026, in Albany, New York, where the court will consider the U.S. Sentencing Guidelines and other relevant factors. Assistant U.S. Attorney Nicholas Walter is listed as the prosecutor handling the matter in court filings.

“Carbone didn’t just steal money — he betrayed the union he served for nearly two decades, robbing the American taxpayer of hundreds of thousands of dollars. His actions represent a serious abuse of position and his blatant disregard for hardworking Americans. At the Office of Inspector General, we are unwavering in our mission to expose union fraud and ensure those who steal from American workers are held fully accountable. We will continue to work relentlessly with our law enforcement partners to crush these schemes, put fraudsters behind bars, and protect the integrity of our nation’s labor unions,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor.

“The U.S. Department of Labor’s Office of Labor-Management Standards remains committed to safeguarding union financial integrity and combating fraud,” said New York District Director Erica Weber. “Alongside our partners in law enforcement, we will continue to identify criminal violations and pursue legal action when individuals unlawfully exploit their union positions without regard to the best interests of their members.”

The Department of Labor’s investigative branches are working alongside federal prosecutors to document losses, trace transactions, and develop evidence for sentencing and restitution calculations. A judge will consider restitution, loss amounts, and aggravating or mitigating factors when determining a sentence within the statutory framework. The plea itself resolves criminal liability for the counts charged but leaves sentencing to the court’s discretion.

The Department of Justice recently created a National Fraud Enforcement Division focused on fraud against the American public, and that initiative figures into how authorities describe this case. The Fraud Division’s stated mission is to concentrate resources on schemes that victimize workers, taxpayers, and benefit programs. Officials linked the broader enforcement effort to a government task force aimed at eliminating fraud, waste, and abuse within federal programs.

Federal enforcement officials emphasized that the case is part of broader efforts to protect union finances and hold trusted fiduciaries accountable. Investigations like this rely on audits, financial records, and coordinated work between inspector general offices and U.S. Attorney’s offices. Those same mechanisms will inform restitution orders, asset tracing, and any additional civil remedies pursued by affected parties.

A defendant’s final sentence will reflect the statutes violated, the guidelines, and the judge’s assessment of the defendant’s conduct and criminal history. The plea agreement and court filings set the stage for the October sentencing hearing, where the court will determine an appropriate punishment and any restitution obligations. Meanwhile, investigators and prosecutors will prepare sentencing submissions that document the scope of the loss and the impact on union members and stakeholders.

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