A former labor leader who represented faculty at Brooklyn’s Pratt Institute is facing federal charges after allegedly siphoning nearly $300,000 from union coffers to bankroll a lavish lifestyle and renovate a home in upstate New York.
Kye Carbone, 68, of Athens, New York, was arrested on October 17, 2025, following a 30-count indictment alleging wire fraud and theft.
For two decades, Carbone served as president of the United Federation of College Teachers Local 1460. Prosecutors claim the embezzlement began in 2011 and continued for 12 years until Carbone was voted out of office in 2023.
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According to the indictment, Carbone treated the union’s funds as a personal account, diverting more than $290,000 to cover travel, restaurant tabs, and personal bills.
Investigators allege a significant portion of the stolen money went toward purchasing and renovating a private property in Athens, a town in Greene County.
“As alleged, Carbone embezzled hundreds of thousands of dollars from the union he claimed to serve and used the money to fund his lifestyle and buy a home in the Hudson Valley,” said Acting U.S. Attorney John A. Sarcone III.
Sarcone issued a stark warning regarding the accusations: “Upstate New York is a wonderful place to live. But if you steal money from a union, your next home will be a federal prison.”
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The investigation was conducted in partnership with the Department of Labor’s Office of Inspector General. Special Agent-in-Charge Jonathan Mellone emphasized that protecting American workers involves policing the organizations meant to represent them.
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving labor unions,” Mellone said.
Carbone faces three counts of wire fraud and 27 counts of embezzlement from a labor union. If convicted, the wire fraud charges alone carry a maximum penalty of 20 years in prison per count, while the embezzlement charges carry up to five years per count.
Carbone was arraigned in Albany before United States Magistrate Judge Paul J. Evangelista. He entered a plea of not guilty and was released pending trial. Prosecutors emphasized that the charges are accusations and the defendant is presumed innocent unless proven guilty.
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