OAKLAND – Susan Elizabeth Kyle was sentenced this morning to 24 months in prison for embezzlement of money from a labor organization by an officer, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.  The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge. 

Kyle, 61, now living in Citrus Heights, Calif., pleaded guilty to the charge on October 29, 2018.  According to her plea agreement, Kyle admitted that while employed as the Treasurer of American Federation of State, County and Municipal Employees Local 2428, the union for East Bay Regional Park District employees, she used her Treasurer position to redirect union funds to accounts that she controlled.  As Treasurer, Kyle was the signatory of Local 2428’s bank account.  Kyle would verbally authorize the Local 2428’s payroll processing company to issue payments to cover the union’s payroll expenses. Kyle admitted that from 2008 to 2014, while she managed the Local 2428’s accounts, she told the Local 2428’s payroll processing company to issue unauthorized payments to herself on a weekly basis.  Then, to conceal her fraud, she prepared reports that did not reflect the true expenditures.  Kyle admitted that she stole at least $490,338 from the Union as a result of this scheme.

In addition, as part of the plea agreement, Kyle admitted that she abused her position of trust as Treasurer of the Local 2428 Union.  

On October 5, 2018, the United States Attorney’s Office charged Kyle 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).  Kyle pleaded guilty to the charge.

In addition to the prison term, Judge Gilliam ordered Kyle to pay $490,338 in restitution to the Local 2428 Union.  At the sentencing hearing, Judge Gilliam recognized the “devastating effect [Kyle’s crime had] on the Union” and noted that Kyle caused a “massive amount of harm.”  Judge Gilliam ordered Kyle to serve 36 months of supervised release following her prison term.  Judge Gilliam ordered Kyle to self-surrender on or before March 18, 2019, to begin serving her prison term. 

Assistant United States Attorney Christina McCall is prosecuting this case with the assistance of Vanessa Quant and Elyza Delgado.  This prosecution is the result of an investigation by the FBI.  

 

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.