Judge temporarily bars Carter from spending any Habitat funding

Judge Jerry Winchester issued a temporary restraining order Monday afternoon prohibiting Robert “Rocky” Carter, president of the Cumberland River Valley Habitat for Humanity, from disposing of any Habitat assets, or from spending any of the charity’s money.
Carter, who was indicted earlier this year for allegedly taking more than $27,704.58 belonging to the charity, and Cumberland River Valley Habitat for Humanity, were sued last week by Habitat for Humanity International Inc.
“Currently, the Affiliate lacks a functioning board of directors, and there is no supervision or accountability for Carter,” the lawsuit asserts. “In light of the indictment, Carter cannot be trusted to manage the assets of the Affiliate without supervision.”
The lawsuit seeks to dissolve Cumberland River Habitat for Humanity, for a turnover of all corporate and financial records for Cumberland River to the national group, and for recovery of the conversion of corporate assets.
“No money is to be taken out of any bank accounts by anyone,” Winchester told attorneys for both sides.
He also ordered Carter to gather up all Habitat records, and turn them over to his attorney, David Hoskins, for safe keeping until it is determined whether the national group has standing to bring the lawsuit.
“We dispute everything in the complaint,” Hoskins said.
He said there is no contract between Habitat International and the local chapter, which would give control of the local assets to the national chapter, should the local chapter go out of business. Habitat International contends otherwise.
Hoskins said the local group is willing to quit using the Habitat name, and that Carter is in the process of winding down the corporation.
Hoskins said Carter wants to turn the local Habitat assets over to the University of the Cumberlands Mountain Outreach program rather than the international chapter of Habitat for Humanity.
He added Carter still maintains his innocence on the criminal charges as he always has, and that he feels his client will be cleared during his trial, which is scheduled for March 6.
“A lot of it is going to be crystal clear when we try this case,” Hoskins noted.
On Feb. 14, the grand jury charged Carter, 50, with 24 counts of theft by failure to make required disposition of property over $300, two counts of theft by deception over $300, and for one count of being a second-degree persistent felony offender.
The theft by deception charges stem from allegations that Carter took a total of $3,000 from Marty and Bridget Jordan from May 6, 2005, through June 1, 2005, upon the promise he would construct a house for them, but failed to do so, according to his indictment.
The theft by deception charges are related to one of the theft by failure to make required disposition of property charges, and involve $4,800 converted to the Knox Land Company on March 18, 2005.
The other theft by failure to make required disposition of property charges alleged that from August 2002 through May 2005, Carter was the custodian of funds for the Cumberland River Valley Habitat for Humanity. The indictment alleges that he intentionally converted money meant for Habitat for Humanity for his own use or benefit by writing checks, according to the indictments.
Winchester ordered no future hearing date in the case during Monday’s hearing.