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The Honolulu Advertiser
Posted on: Thursday, December 22, 2005

Unity House seeks relief from court

By Curtis Lum
Advertiser Staff Writer

The directors of the Unity House labor organization are asking that a federal judge remove a court-appointed receiver named in December 2004 to oversee the assets of the nonprofit group.

The complaint was filed yesterday in U.S. District Court by attorney Eric Seitz on behalf of Arlene Ilae, Randolph Borges, Michael Green, Randall Harakal, Berna Iosua, Norberto Castillo and Anthony Rutledge Jr. The group contends they were never removed as directors of Unity House and wants court-appointed receiver EE&G Technical Services and its agent, Anthony Pounders, prohibited from continuing their work.

The suit alleges that the receiver has restructured Unity House's staff and made other changes that "will irrevocably alter the fundamental character and purpose of Unity House and alienate and waste Unity House assets."

Federal agents seized control of Unity House in December 2004 after its two top officials, Anthony Rutledge Sr. and his son, Aaron, were indicted on federal fraud and conspiracy charges. The receiver was appointed to operate Unity House while the criminal case was pending.

The Rutledges reached a plea deal with federal prosecutors in August, but that agreement was thrown out last month.

Reach Curtis Lum at culum@honoluluadvertiser.com.