Paul Joseph Sulla, Jr. and Gary Charles Zamber, Affordable Housing Corruption, Hawaii 2022

Big Island Affordable Housing Corruption Scheme Uncovered

HONOLULU, Hawaii - A federal grand jury returned an eight-count indictment against Paul Joseph Sulla, Jr., 76, and Gary Charles Zamber, 53, both attorneys residing on the island of Hawaii, on July 21, 2022.

The indictment alleges a conspiracy and a scheme to deprive the public of its right of honest services spanning more than six years. According to court documents and information presented in court, Rudo solicited and accepted multiple bribes and kickbacks from Sulla, Zamber and Budhabhatti in exchange for performing, and agreeing to perform, official acts while working for the Hawaii County Office of Housing and Community Development (OHCD).

According to the indictment and informations, the defendants deceived the public into believing that Rudo was dutifully working on their behalf to provide affordable housing, when in reality he was using his official position to obtain money from Sulla, Zamber and Budhabhatti in the form of bribes and kickbacks. Rudo abused his official position with the OHCD to ensure the County approved three affordable housing agreements (AHAs) involving Luna Loa Developments, LLC, West View Developments, LLC and Plumeria at Waikoloa, LLC. These companies were variously owned, controlled, and used by the defendants to obtain public benefits related to development projects in South Kohala, Kailua-Kona, and Waikoloa.

Through the AHAs, the defendants fraudulently obtained at least $10,980,000 worth of land and excess affordable housing credits (AHCs). Sulla is also charged in the indictment with money laundering. According to the allegations, he laundered the proceeds of the conspiracy and scheme to commit honest services wire fraud in an attempt to conceal, among other things, the source, location, and ownership of those proceeds.

Defendant Information:

- Defendant: Paul Joseph Sulla, Jr.

- Charges: six counts of honest services wire fraud, one count of conspiracy, one count of money laundering

- Location: Hawaii

- Date: July 21, 2022

- Status: Indicted

- Sentence: $250,000 fine and up to 20 years imprisonment

- Additional Information: Sulla is also charged with one count of money laundering.

- Defendant: Gary Charles Zamber

- Charges: six counts of honest services wire fraud, one count of conspiracy

- Location: Hawaii

- Date: July 21, 2022

- Status: Indicted

- Sentence: $250,000 fine and up to 20 years imprisonment

- Additional Information: Zamber is also charged with six counts of honest services wire fraud and one count of conspiracy.

- Defendant: Alan Scott Rudo

- Charges: conspiracy to commit honest services wire fraud

- Location: Hawaii

- Date: July 18, 2022

- Status: Guilty Plea

- Sentence: $2,114,170 money judgment and forfeiture of real estate and affordable housing credits

- Defendant: Rajesh P. Budhabhatti

- Charges: conspiracy to commit honest services wire fraud

- Location: Hawaii

- Date: August 1, 2022

- Status: Scheduled to enter guilty plea

- Sentence: To be determined

- Dollar Amounts: Over $2.3 million in criminal proceeds and 45 affordable housing credits recovered, at least $10,980,000 in land and affordable housing credits obtained through the AHAs.

Source: https://www.justice.gov/usao-hi/pr/four-charged-big-island-affordable-housing-corruption-scheme