HILO, HI – A six-year scheme to line pockets using funds earmarked for affordable housing on the Big Island has resulted in federal charges against four individuals, including two prominent attorneys. Paul Joseph Sulla, Jr., and Gary Charles Zamber are accused of using their legal positions to solicit bribes and kickbacks in exchange for influencing affordable housing deals, effectively stealing from those most in need.
The indictment, unsealed this week, alleges Sulla and Zamber face six counts of honest services wire fraud and one count of conspiracy. The feds claim the pair accepted payments from Alan Scott Rudo, a former Housing Specialist with the Hawaii County Office of Housing and Community Development (OHCD), and Rajesh P. Budhabhatti, a local businessman. Rudo and Budhabhatti are separately charged with conspiracy to commit honest services wire fraud. The alleged scheme involved manipulating the approval process for Affordable Housing Agreements (AHAs) and fraudulently obtaining valuable Affordable Housing Credits (AHCs).
Sources within the investigation tell Grimy Times the operation was remarkably brazen. Rudo, while employed by the county, allegedly acted as a conduit for bribes, funneling money from Sulla, Zamber, and Budhabhatti in exchange for preferential treatment on housing projects. The indictment details how the defendants created the illusion of legitimate work being done to secure affordable housing, while secretly diverting funds for personal gain. This wasn’t just about money; it was a calculated betrayal of public trust.
The scale of the alleged fraud is significant. Federal prosecutors are pursuing a money laundering charge against Sulla, indicating they believe the illicit funds were actively concealed and disguised. Alan Scott Rudo has already pleaded guilty, and is cooperating with the investigation. Budhabhatti is expected to enter a plea soon. Rudo’s guilty plea included forfeiture of assets and a money judgement, signaling the feds are actively working to recover the stolen funds.
The FBI launched the investigation, and Assistant U.S. Attorneys Mohammad Khatib and Sydney Spector are leading the prosecution. While the exact amount of money involved remains under seal, sources confirm the scheme is believed to have siphoned millions of dollars over the six-year period. This case isn’t an isolated incident; it’s part of a disturbing pattern of corruption in Hawaii, where the lure of lucrative development deals often overshadows the needs of the community.
Grimy Times will continue to follow this case as it unfolds. The sentencing of Rudo and the impending plea from Budhabhatti are crucial next steps. The feds are determined to recover the criminal proceeds and hold all involved accountable for exploiting a system designed to help Hawaii’s vulnerable populations. This is a stark reminder that even in paradise, greed can thrive – and the Grimy Times is here to expose it.
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