Attorneys for Rutledge and his son, Aaron, who was also charged in the case, withdrew guilty pleas entered in August to reduced charges in the case after Ezra made his ruling. Defense lawyers said they did not know if the case would now go to trial or if they would try to negotiate another agreement with prosecutors. The defendants declined comment.

Edmund Power, lead prosecutor in the case, declined comment on Ezra's decision or on what the government may do next.

The Rutledges were indicted in December on fraud and conspiracy charges and faced maximum sentences of between 53 and 93 years in prison, but later reached a plea bargain with the government that would have involved no jail time. Also, they would have been allowed them to return as consultants to the non-profit labor organization Unity House, Inc.

Anthony Rutledge had agreed to plead guilty to a single count of filing a false tax return. Aaron Rutledge had agreed to plead guilty to witness tampering during the course of an IRS criminal investigation.

Ezra said he was limited in what he could say about his reasons for rejecting the plea deal, but did say he could not approve the return of the Rutledges to Unity House after they pleaded guilty to financial crimes.

"This court cannot countenance a defendant pleading guilty to these crimes and then stepping back to a fiduciary responsibility with an organization like Unity House," Ezra said.