(BIVN) – A federal jury this week found two Big Island attorneys and one businessman guilty of various charges in relation to a reported bribery and kickback scheme involving the Hawaiʻi County Office of Housing and Community Development. 

After a three-week jury trial before in U.S. District Court, attorneys Paul Joseph Sulla, Jr., 78, and Gary Charles Zamber, 55, as well as businessman Rajesh P. Budhabhatti, 65, were found guilty of conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud. Sulla was also convicted of money laundering. 

United States District Judge Jill A. Otake set sentencing dates on October 7th for Zamber, October 8th for Budhabhatti, and October 21st for Sulla. 

In a news release, prosecutors reported the defendants were permitted to remain released on bail pending sentencing. The news release included a comment from Hawaiʻi County Mayor Kimo Alameda. 

“This verdict marks an important step toward accountability and reinforces the importance of integrity in public service,” said Mayor Alameda. “We understand the impact this case has had on our community and remain committed to restoring trust. Since the initial findings, the Office of Housing and Community Development has taken concrete actions to strengthen internal controls, improve oversight, and ensure that public resources are managed responsibly and transparently. These changes reflect our commitment to kuleana— our shared responsibility — to serve with integrity and protect community resources.” 

From the U.S. Attorney’s Office, District of Hawaiʻi:

At trial, the evidence showed that Sulla and Zamber, both attorneys living on the island of Hawaii (“Big Island”), and Budhabhatti, a private businessman on the Big Island, paid bribes and kickbacks to Alan Rudo, a Housing Specialist for the Hawaii County Office of Housing and Community Development, in exchange for Rudo using his official position to ensure the County approved three affordable housing agreements (AHAs) benefitting the defendants’ development companies Luna Loa Developments, LLC, West View Developments, LLC and Plumeria at Waikoloa, LLC. Although the defendants promised in the AHAs to build affordable housing for the citizens of Hawaii County, their development companies never built a single unit. Through the AHAs, the defendants fraudulently obtained at least $10,980,000 worth of land and excess affordable housing credits (AHCs). From that amount, the defendants paid or attempted to pay Rudo approximately $1,931,778 in bribes and kickbacks.

The defendants were convicted of one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years imprisonment, and nine counts of honest services wire fraud, each of which also carries a maximum sentence of 20 years. Sulla alone was charged with and convicted of money laundering, which carries a maximum sentence of ten years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Alan Rudo, who testified at trial, previously pled guilty in July 2022 to conspiring to commit honest services wire fraud in connection with the bribery and kickback scheme. Rudo is scheduled to be sentenced on August 13, 2025.

“Today’s verdict reiterates our unwavering message to those who bribe and attempt to buy the discretion of Hawaii’s public officials at the expense of the public’s trust and the integrity of our public institutions—you will be federally prosecuted and brought to justice,” said Acting United States Attorney Ken Sorenson. “Our office will continue to root out and vigorously pursue those who engage in public corruption or who violate their positions of public trust.”

“The defendants in this investigation defrauded their own community for personal financial gain,” said FBI Honolulu Special Agent in Charge David Porter. “The corruption of government officials corrodes public trust and weakens our communities. The FBI will continue to aggressively pursue these cases to protect and maintain public trust and hold criminals accountable.”