Ex-Union Boss Pleads Guilty to Swiping $290K Over 12 Years

A former president of a union has pleaded guilty to stealing over $290,000 from his union over 12 years.

Kye Carbone, 69, of Athens, New York, pled guilty on June 22 to three counts of wire fraud and three counts of theft from a labor union.

First Assistant United States Attorney John A. Sarcone III; Anthony P. D’Esposito, Inspector General, Department of Labor, Office of Inspector General; and Erica Weber, District Director, Department of Labor, Office of Labor-Management Standards, made the announcement.

Between 2003 and 2023, Carbone served as the president of United Federation of College Teachers Local 1460, the union representing faculty members at the Pratt Institute in Brooklyn, New York.

Carbone pled guilty to stealing over $290,000 from the Local between 2011 and 2023; he used the money for his personal expenses, restaurant bills, and travel. In 2023 Carbone was voted out of office.

“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 charges carry a maximum sentence of 20 years in prison and a maximum $250,000 fine per count, as well as up to 3 years of post-imprisonment supervised release.  

“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 embezzlement charges carry a maximum sentence of five years in prison and a maximum fine of $10,000 per count, as well as up to three years of post-imprisonment supervised release.  

A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines, and other factors.

Carbone’s guilty plea was accepted by the Honorable Anne M. Nardacci.  

Sentencing is set for October 20, 2026, in Albany, New York.

The Department of Labor, Office of the Inspector General, and the Department of Labor, Office of Labor-Management Standards, are investigating the case. Assistant U.S. Attorney Nicholas Walter is prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (‘Fraud Division’). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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