HONOLULU – A federal jury on Wednesday, June 4, 2025, found two Hawaiʻi Island attorneys and a businessman guilty of conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud after a three-week trial. Paul Joseph Sulla, Jr., 78, Gary Charles Zamber, 55, and Rajesh P. Budhabhatti, 65, were convicted of paying bribes and kickbacks to a County of Hawaiʻi housing official in exchange for favorable treatment on affordable housing agreements. Sulla was additionally convicted of money laundering.
The evidence presented at trial before United States District Judge Jill A. Otake revealed that Sulla and Zamber, both attorneys, along with Budhabhatti, a private businessman, engaged in a scheme to corrupt Alan Rudo, a Housing Specialist for the Hawaiʻi County Office of Housing and Community Development. Rudo, who testified at trial, previously pled guilty in July 2022 to conspiring to commit honest services wire fraud related to the same scheme and is scheduled for sentencing on August 13, 2025.
Prosecutors showed that the defendants paid or attempted to pay Rudo approximately $1,931,778 in bribes and kickbacks. In return, Rudo allegedly used his official position to ensure the County approved three affordable housing agreements (AHAs) that benefited the defendants’ development companies: Luna Loa Developments, LLC, West View Developments, LLC, and Plumeria at Waikoloa, LLC.
Despite promising to build affordable housing for Hawaiʻi County citizens through these AHAs, the defendants’ companies never constructed a single unit. Through these fraudulent agreements, the defendants reportedly obtained at least $10,980,000 worth of land and excess affordable housing credits (AHCs).
All three defendants were convicted of one count of conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud, each carrying a maximum sentence of 20 years imprisonment. Sulla’s additional conviction for money laundering carries a maximum sentence of ten years. Sentences will be determined by a federal district court judge based on U.S. Sentencing Guidelines and other statutory factors.
Sentencing dates have been set for October 7, 2025, for Zamber; October 8, 2025, for Budhabhatti; and October 21, 2025, for Sulla. The defendants were permitted to remain released on bail pending sentencing.
Acting United States Attorney Ken Sorenson commented on the verdict, stating, “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. Our office will continue to root out and vigorously pursue those who engage in public corruption or who violate their positions of public trust.”
FBI Honolulu Special Agent in Charge David Porter added, “The defendants in this investigation defrauded their own community for personal financial gain. 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.”
County of Hawaiʻi Mayor Kimo Alameda also issued a statement, acknowledging the impact of the case on the community. “This verdict marks an important step toward accountability and reinforces the importance of integrity in public service,” Mayor Alameda said. “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.”
The Federal Bureau of Investigation led the case. Assistant U.S. Attorneys Mohammad Khatib and Margaret Nammar, along with Trial Attorney William Gullota of the Department of Justice, Criminal Division, Public Integrity Section, prosecuted the case.