After a three-week trial, a federal jury found Paul Joseph Sulla, Jr., Gary Charles Zamber, and Rajesh P. Budhabhatti guilty of conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud. Sulla was also convicted of money laundering. Sentencing is scheduled for October 2025.
The trial revealed that Sulla and Zamber, attorneys from Hawaii's Big Island, along with businessman Budhabhatti, paid bribes to Alan Rudo, a Housing Specialist in the Hawaii County Office of Housing and Community Development. In return, Rudo used his position to approve affordable housing agreements (AHAs) for the defendants' companies: Luna Loa Developments, LLC; West View Developments, LLC; and Plumeria at Waikoloa, LLC. Despite their promises to build affordable housing units under these agreements, no units were constructed. The defendants obtained land and credits valued at over $10 million through fraudulent means and paid Rudo approximately $1.9 million in bribes.
Each count of conspiracy to commit honest services wire fraud carries a maximum sentence of 20 years imprisonment. Additionally, Sulla faces up to ten years for money laundering charges.
Alan Rudo had previously pled guilty in July 2022 for his role in the scheme and is set for sentencing on August 13, 2025.
Acting United States Attorney Ken Sorenson stated: “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.”
FBI Honolulu Special Agent David Porter commented on the case's impact on community trust: “The defendants in this investigation defrauded their own community for personal financial gain... The FBI will continue to aggressively pursue these cases."
County of Hawaii Mayor Kimo Alameda emphasized efforts made by local government following these events: “This verdict marks an important step toward accountability... Since the initial findings, the Office of Housing and Community Development has taken concrete actions to strengthen internal controls."
The Federal Bureau of Investigation conducted the investigation with prosecution led by Assistant U.S. Attorneys Mohammad Khatib and Margaret Nammar alongside Trial Attorney William Gullota from the Department of Justice's Public Integrity Section.
