Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Puna and Hilo Scammer Attorneys Sentenced for Affordable Housing Bribery Corruption
#1
Audit everything.

Updated April 24, 2026

https://www.justice.gov/opa/pr/businessm...ibe-hawaii

Three men have been sentenced for their roles in a conspiracy to pay bribes to a public official at the Hawaii County Office of Housing and Community Development (OHCD) in exchange for his official actions in connection with affordable housing development agreements worth more than $11,000,000. Hawaii (Big Island) attorney, Gary Charles Zamber, 56, of Keaau, Hawaii, was sentenced to 70 months in prison. Former Big Island businessman, Rajesh Pankaj Budhabhatti, 65, of Morro Bay, California, was sentenced to 90 months in prison. Former Big Island attorney, Paul Joseph Sulla, 79, of Hilo, Hawaii, was sentenced to 60 months in prison.
On June 4, 2025, a jury in the District of Hawaii convicted Sulla, Zamber, and Budhabhatti on all counts of a superseding indictment. The three defendants were charged with conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud for their roles in a scheme to bribe Alan Scott Rudo, a Housing Specialist at the OHCD. Sulla was also convicted of money laundering.
“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 Hawaii. “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.”
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.
Sulla was sentenced on April 23. Zamber and Budhabhatti were sentenced on Jan. 30 and Feb. 6, respectively. Rudo, who pleaded guilty and testified at trial, will be sentenced at a later date. Zamber’s and Sulla’s law licenses are currently suspended, prohibiting them from practicing law in Hawaii.
The FBI Honolulu Field Office investigated the case.
Trial Attorney William J. Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Mohammad Khatib and Margaret Nammar for the District of Hawaii are prosecuting the case.

Updated April 24, 2026
Reply
#2
Old news Tang.

Embarrassing Housing Scam Triggers Big Island Reforms

And guess what? The system worked, these criminals got caught and will spend a nice long time in jail, one most likely to die in custody if not released on a "sympathy" claim due to his age.

No one calling the charges "fake," "witch hunts," "hoax" or all the other colorful language that has become so normal today.
Reply
#3
I think this story is noteworthy because it shows, once again, that it's always the Feds who clamp down on corruption in Hawaii. Before anyone points out that the state attorney general has sent a target letter to the lieutenant governor, don't forget that the AG had to be dragged kicking and screaming into doing anything at all. She spent weeks denying that there was any basis for her to intervene before being forced into it.

The only state initiated corruption trial that I can remember was that of Billy Kenoi, and the consensus is that the purpose was to end his upstart political career and not to produce a conviction.

Our own Puna state representative Greggor Ilagan voted to table a citizens' petition for an in-depth investigation into the now infamous $35K paper bag:

https://www.civilbeat.org/2026/04/hawaii...-bag-case/

As a lifelong Democrat, I am embarrassed to say that corruption is deeply ingrained in the Hawaii party, and most elected officials don't want to do a thing about it.
Reply
#4
most elected officials don't want to do a thing about it.

It’s what happens when our representatives choose their team, and loyalty to their team over honesty and the ability to navigate what’s best for the people in their district, state, and country.

Do people want their representatives to legislate clean water? Or businesses? Or bags of cash?  It shouldn’t be a difficult decision. It shouldn’t take time, if it does it’s wasted time.
Reply
#5
As a lifelong Democrat, I am embarrassed to say that corruption is deeply ingrained in the Hawaii party, and most elected officials don't want to do a thing about it.

In as much as I could not agree more, I don't think corruption is limited to democrats or Hawaii.

Our own Puna state representative Greggor Ilagan voted to table a citizens' petition for an in-depth investigation into the now infamous $35K paper bag:

Let's all remember that when he is begging for money and holding town hall "listening sessions" all around Puna.

Do people want their representatives to legislate clean water? Or businesses? Or bags of cash?  It shouldn’t be a difficult decision. It shouldn’t take time, if it does it’s wasted time.

One would certainly think!
Reply
#6
I think this story is noteworthy because it shows, once again, that it's always the Feds who clamp down on corruption in Hawaii. Before anyone points out that the state attorney general has sent a target letter to the lieutenant governor, don't forget that the AG had to be dragged kicking and screaming into doing anything at all. She spent weeks denying that there was any basis for her to intervene before being forced into it.


The only state initiated corruption trial that I can remember was that of Billy Kenoi, and the consensus is that the purpose was to end his upstart political career and not to produce a conviction.

Our own Puna state representative Greggor Ilagan voted to table a citizens' petition for an in-depth investigation into the now infamous $35K paper bag:

https://www.civilbeat.org/2026/04/hawaii...-bag-case/

As a lifelong Democrat, I am embarrassed to say that corruption is deeply ingrained in the Hawaii party, and most elected officials don't want to do a thing about it.

Warheit.  Audit everything.  Prioritize elections.
Reply
#7
(04-28-2026, 03:44 AM)Punatang Wrote: Warheit.  Audit everything.  Prioritize elections.

Clarifying question Tang. Does your concern and desire to audit everything, especially elections, include every election at every level of government, local, state and federal, regardless of which candidate wins and which candidate loses, as well as political party affiliation of each candidate? And then, in the event of any such audit, fully accept the results that audit produces?
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)