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Three Sentenced In Hawaiʻi County Bribery Scheme
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by Big Island Video News
on Apr 24, 2026 at 8:43 pm

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STORY SUMMARY

HONOLULU - The three men were charged with "conspiracy to commit honest services wire fraud" in connection with affordable housing development agreements worth more than $11 million.

(BIVN) – Two Big Island attorneys and a businessman have been sentenced for their roles in a multi-million dollar bribery scheme involving a Hawaiʻi County public official. 

According to a news release from the U.S. Attorney’s Office in Hawaiʻi, three men – attorney Gary Charles Zamber, businessman Rajesh Pankaj Budhabhatti, and former attorney Paul Joseph Sulla – were part of a conspiracy to pay bribes to Alan Scott Rudo, a Housing Specialist at the Hawaii County Office of Housing and Community Development (OHCD) in exchange for affordable housing development agreements worth more than $11 million. 

The three defendants were charged with conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud. Sulla was also charged with money laundering. 

Sulla, Zamber, and Budhabhatti were convicted on all counts by a jury in the District of Hawaiʻi on June 4, 2025. 

On January 30th, Zamber (56) was sentenced to 70 months in prison.

On February 6th, Budhabhatti (65) was sentenced to 90 months in prison.

On April 23rd, Sulla (79) was sentenced to 60 months in prison.

Rudo pleaded guilty and testified at trial. He will be sentenced at a later date.

From the U.S. Attorney news release:

According to court documents and evidence presented at trial, Sulla, Zamber, and Budhabhatti conspired to pay bribes and kickbacks to Rudo in exchange for Rudo’s agreement to use his official position to ensure that Hawaii 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 more than $11,000,000 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.



“This wasn’t just corruption – it was a calculated betrayal of the very community the defendants were supposed to serve,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Instead of building homes for struggling families looking for an onramp to a better life, the defendants built a scheme to enrich themselves, paying millions in bribes and kickbacks while pretending to help those in need. That kind of greed doesn’t just break the law – it erodes trust, damages institutions, robs honest businesses of opportunities and harms American citizens. The Criminal Division is committed to pursuing those who abuse positions of trust for personal gain.” 

“Driven by greed, the defendants sought to enrich themselves at the expense of the Hawaiian community, diverting millions in much needed affordable housing resources intended to benefit Hawaii County’s poor and disadvantaged into the defendants’ own pockets,” said U.S. Attorney Ken Sorenson for the District of Hawaiʻi. “Public corruption undermines faith in our institutions and will not be tolerated. We pledge to hold accountable those who seek to victimize the people of Hawaii by compromising our public officials and institutions for their own greed and personal gain.” 

“This sentencing marks another step toward accountability for those who pollute the integrity of our government institutions with bribes and kickbacks,” said Special Agent in Charge David Porter of the FBI Honolulu Field Office. “The defendants’ criminal schemes amounted to more than bribery and fraud — they stole opportunities from Big Island families and our community as a whole. The FBI, alongside our partners, will never stop working to pursue those who undermine the public’s trust and weaken the foundations of our community through corruption and deceit.” 


Filed Under: Hawaii

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