County housing official sentenced to nearly 4 years in prison – West Hawaii Today

A former Hawaii County housing development specialist was sentenced Thursday in federal court to 46 months in prison for taking bribes to facilitate a multimillion-dollar affordable housing credits scam.

Alan Scott Rudo, 59, who now lives in Cathedral City, Calif., was given until July 9 to surrender to the federal Bureau of Prisons when he was sentenced by U.S. District Judge Jill Otake in Honolulu.

Otake also ordered Rudo to pay $483,265 in a forfeiture judgment.

In a deal with prosecutors, Rudo pleaded guilty in August 2022 to conspiracy to commit honest services wire fraud and admitted to accepting about $1.9 million in bribes from Hilo attorneys Paul Sulla Jr. and Gary Zamber and former Big Island businessman Rajesh Budhabhatti, who now lives in Morrow Bay, Calif.

In return, Rudo agreed to use his official position in the Office of Housing and Community Development to ensure the county approved three affordable housing agreements (AHAs) benefiting the defendants’ development companies, Luna Loa Developments LLC, West View Developments LLC and Plumeria at Waikoloa LLC.

Through those AHAs, the development companies fraudulently raked in more than $11 million worth of land and excess affordable housing credits (AHCs).

Sulla, 79, Zamber, 56, and Budhabhatti, 65, were charged with conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud. Sulla was also charged with money laundering.

Rudo was the prosecution’s star witness at their trial, and on June 4, 2025, a federal jury in Honolulu convicted all three on all charges.

Zamber was sentenced on Jan. 30 to 70 months in prison. Budhabhatti was sentenced on Feb. 6 to 90 months in prison. And Sulla was sentenced on April 23 to 60 months in prison.

Zamber’s and Sulla’s law licenses also have been suspended, prohibiting them from practicing law in Hawaii.

“This sentencing marks the closing of an unfortunate chapter and underscores the importance of strong internal controls, clear segregation of duties, and effective program oversight,” said county Housing Administrator Kehaulani Costa in a statement. “The Office of Housing and Community Development remains committed to strengthening accountability and program integrity through enhanced compliance monitoring, improved documentation practices, and continued staff professional development.

“We are proud of the work undertaken to implement stronger safeguards, increase transparency, and reinforce public trust in the delivery of affordable housing programs serving Hawaii Island communities.”

A series of articles by Hilo resident Pat Tummons in her Environment Hawaii newsletter exposed questionable dealings in OHCD that ultimately led to an FBI investigation that resulted in these convictions.

When announcing charges in July 2022, then-U.S. Attorney Clare Connors praised the reporting by Environment Hawaii that first raised red flags about Rudo’s and his co-defendants’ schemes and, she said, led a county employee to alert the FBI.

The resultant public flap caused the County Council to order an internal audit, which in 2013 found OHCD had “inadequate internal controls” over its affordable housing credits program.

Costa said OHCD has since “strengthened internal controls, enhanced oversight and compliance monitoring, improved documentation and review procedures, expanded staff training, and implemented additional safeguards to support greater accountability, transparency, and long-term program integrity.”

Email John Burnett at john.burnett@hawaiitribune-herald.com.