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The Honolulu Advertiser

Posted at 5:55 p.m., Thursday, August 25, 2005

Rutledges plead to reduced criminal charges

By Jim Dooley
Advertiser Staff Writer

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Former Hawai'i labor leader Anthony "Tony" Rutledge Sr. and his son Aaron pleaded guilty this afternoon to significantly reduced criminal charges stemming from a tax fraud and conspiracy investigation under an agreement with the U.S. Justice Department, but federal Judge David Ezra said he may reject the plea agreement.

Tony Rutledge pleaded guilty to one count of helping to file a false tax return in 1997 for Star Beach Boys Inc., a corporation started by his father, Hawai'i labor patriarch Arthur Rutledge.

Under the terms of the plea agreement, Tony Rutledge would be sentenced to five years of probation.

His son Aaron pleaded guilty to a misdemeanor charge of witness tampering and would be sentenced to one year of probation.

The agreement also called for return of Unity House Inc., a nonprofit labor organization seized by federal authorities in December, to the control of its former board of directors. The two Rutledges cannot have anything to do with Unity House at least during the terms of their probations.

Judge Ezra said he had "serious reservations" about the plea agreement and delayed its effect until the sentencing scheduled in April of next year.

The Rutledges were charged with multiple felonies in a December 13-count indictment that alleged they committed tax and wire fraud and criminal conspiracy. They had pleaded not guilty to the charges.

Reach Jim Dooley at 535-2447 or jdooley@honoluluadvertiser.com.