BLOOMINGTON — The scope of an ongoing legal saga involving Kahuna Business Group Inc. and its former chief financial officer has widened in a lawsuit filed by the firm against that ex-employee and two other former executives.
The Bloomington company has accused former CFO Scott Rathbun and Ryan Oltman and Carin Weiss-Krolikowski of violating the terms of agreements that barred them from any business activity that competes with Kahuna.
Rathbun, who now serves as senior budget manager for the city of Bloomington, served as chief financial officer for Kahuna from 2004 to April 2017.
Kahuna is seeking $900,000 in liquidated damages for Rathbun's alleged breach of contract that occurred after he solicited Oltman and Weiss-Krolikowski to create or join the competing firm of KORe Accounting Professionals, according to the lawsuit.
Rathbun owns 10 percent of Kahuna, which is involved in business development, sales and marketing related to the ATM and credit card industry.
Oltman, a senior finance associate when he left the firm in 2017 after six years, also is accused of using Kahuna's confidential business information to build the competing company, an alleged violation of his contractual obligations to Kahuna.
Kahuna is seeking $900,000 in liquidated damages from Oltman and $50,000 from Weiss-Krolikowski.
Similar claims of breach of contract against Weiss-Krolikowski are included in the lawsuit. She allegedly solicited clients for KORe while she was still employed as a senior finance associate for Kahuna, said the lawsuit. As part of her efforts to help the new company, Weiss-Krolikowski allegedly worked with a current Kahuna client to create a website for the competing business.
Rathbun declined to comment through his lawyer and Weiss-Krolikowski and Oltman could not be reached for comment on the lawsuit. LinkedIn lists Weiss-Krolikowski as a self-employed accountant and Oltman has not updated his information on the business professional networking website since leaving Kahuna.
No current information could be located for KORe Accounting Professionals.
The lawsuit filed Jan. 3 in McLean County is the latest in a stream of litigation involving Kahuna Business Group.
In a lawsuit filed in November, Rathbun seeks repayment of $248,000 he claims the company owes him and his son Franklin Rathbun. The money represents principle and interest payments for four loans Rathbun made to the company in 2013 and 2014, according to court filings.
In its response to the lawsuit, Kahuna denied it had defaulted on the loans.
In December, Kahuna President Frank Lunn said the firm was involved in "a little re-calibration" based on recent developments that included the closure of Acclaim Resource Partners, an insurance subrogation business owned by Kahuna, Lunn, Rathbun and four others.
A legal dispute with a large insurance company forced Acclaim to close its office next door to Kahuna at 807 Arcadia Drive, Bloomington, said Lunn. Acclaim opened in 2005 and employed 15 people when it closed its doors.