Three sentenced for bribery scheme involving Hawaii County affordable housing projects

Merrick B. Garland, Attorney General
Merrick B. Garland, Attorney General
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Three men have been sentenced for their involvement in a multimillion dollar bribery scheme connected to affordable housing development agreements in Hawaii County, according to an April 24 announcement. Gary Charles Zamber, an attorney from Keaau, received a 70-month prison sentence; Rajesh Pankaj Budhabhatti, a former businessman from Morro Bay, California, was sentenced to 90 months; and Paul Joseph Sulla, an attorney from Hilo, was given a 60-month sentence.

The case highlights concerns about public corruption and the diversion of resources intended for disadvantaged communities. According to court documents and evidence presented at trial, the three conspired to pay bribes and kickbacks totaling nearly $2 million to Alan Scott Rudo, a Housing Specialist at the Office of Housing and Community Development (OHCD), in exchange for his assistance with three affordable housing agreements worth over $11 million. The defendants’ companies never built any housing units as promised but obtained land and excess affordable housing credits through fraudulent means.

“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… That kind of greed doesn’t just break the law – it erodes trust, damages institutions, robs honest businesses of opportunities and harms American citizens.”

U.S. Attorney Ken Sorenson for the District of Hawaii said: “Driven by greed, the defendants sought to enrich themselves at the expense of the Hawaiian community… Public corruption undermines faith in our institutions and will not be tolerated.” Special Agent in Charge David Porter of FBI Honolulu Field Office added: “The defendants’ criminal schemes amounted to more than bribery and fraud — they stole opportunities from Big Island families and our community as a whole.”

Sulla was sentenced on April 23; Zamber on January 30; Budhabhatti on February 6. Rudo pleaded guilty earlier and is awaiting sentencing. Both Zamber’s and Sulla’s law licenses are suspended.

The Justice Department includes more than 115,000 employees operating across the United States and internationally according to its official website. It focuses on upholding rule of law while safeguarding civil rights as detailed online, with operations throughout America and over fifty countries according to its website. Merrick Garland has served as Attorney General since March 2021 as noted by DOJ overseeing key prosecutions such as those following Oklahoma City bombing per DOJ records. The department serves as principal federal agency for law enforcement according to its official site.



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