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Press Release

Former Union Treasurer Pleads Guilty To Embezzlement Of Money From A Labor Organization

For Immediate Release
U.S. Attorney's Office, Northern District of California

OAKLAND – Susan Elizabeth Kyle pleaded guilty in federal court in Oakland to embezzlement of money from a labor organization by an officer, announced United States Attorney Alex G. Tse and Federal Bureau of Investigation (“FBI”) Special Agent in Charge John Bennett. The plea was accepted yesterday by the Honorable Haywood S. Gilliam, Jr., U.S. District Court Judge.

In pleading guilty, Kyle, 61, admitted to embezzling approximately $490,338 in funds that belonged to the union representing East Bay Regional Parks employees, the American Federation of State, County and Municipal Employees (“AFSCME”) Local 2428.  Kyle served as the Treasurer of AFSCME Local 2428 between 1999 and 2014, with fiduciary responsibility for managing its funds.  Kyle admitted she stole the money from AFSCME Local 2428 by instructing a payroll processing company to issue unauthorized payments to herself to which she was not entitled.  Kyle admitted that she concealed her embezzlement from AFSCME Local 2428 by preparing reports that did not reflect the true expenditures.  

On October 5, 2018, Kyle was charged by Information with one count of embezzlement of money from a labor organization by an officer, in violation of 29 U.S.C. § 501(c).  Under the plea agreement, Kyle pleaded guilty to the count and agreed to pay full restitution to AFSCME Local 2428.

Kyle is currently released on bond pending sentencing.  Judge Gilliam scheduled Kyle’s sentencing hearing for February 4, 2019.  The maximum statutory penalty for a violation of 29 U.S.C. § 501(c) is five years and a fine of $10,000, plus restitution.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant and Katie Turner.  The prosecution is the result of an investigation by the FBI. 

Updated October 31, 2018