Testing test in housing loans

A federal trial for two thread lawyers accused of receiving affordable housing loans from Hawai County and land transport worth at least $ 10.98 million has been scheduled, without the intention of developing affordable homes.

After at least two long delays, Paul Sulla Jr., 78, and Gary Zamber, 55, along with businessman Rajesh Budhabhatti, 64, are scheduled to be tried from May 12 before the judge of United States District Jill Otake in Honolulu.

The three are in charge of nine conspiracy positions to commit a bank fraud of honest services and a single conspiracy charge.

In addition, Sulla is accused of a money laundering charge. Three of the fraud charges to the cable were added to each defendant to the original positions in August 2022.

The proposed jury instructions and verdict forms for the case were presented on Friday.

Sulla described the “absurd” charges.

“I hope there is no delay this time. I have been ready to go to trial every time, and there have been delays, ”said Sulla on Tuesday. He told the Tribune-Herald that he believes that the trial will happen in May.

“I have been waiting forward; It has been somewhat long and dragged. I have never seen any evidence that I have done something, and I haven’t done it yet. So, I’ve been waiting to put this. “

Zamber did not return a phone call on time for this story.

Prosecutors for the case are prosecutors from the United States Mohammad Khatib and Margaret Nammar. Defensor lawyers are Birney Bserv for Sulla, Gary Springstead for Zamber and Salina Kanai and Melinda Yamaga for Budhabhatti.

Alan Scott Rudo, a former housing specialist at the Housing and Development Office of the County Community from 2006 to 2018, declared himself guilty in August 2022 of conspiracy to commit an honest fraud of services services when granting affordable housing credits to false limited liability companies established by alleged cooperations. conspirators, and then selling those credits to other developers to make profits.

Rudo’s participation in that gain was at least $ 1.8 million. As part of his guilt declaration, Rudo agreed to lose his interest in recovered funds and housing credits, in addition to real estate related to charges. He also agreed a monetary trial of more than $ 2.1 million against him.

According to judicial documents and information presented in the Court, Rudo requested and accepted multiple bribes and bribes of Sulla, Zamber and Budhabhatti while working for the OHCD.

The sentence for Rudo, who is expected to testify by the Prosecutor’s Office, has been delayed on numerous occasions. It is now scheduled to be sentenced on June 2 before Otake.

According to judicial documents, Rudo abused his official position with the OHCD to ensure that the county approved three affordable housing agreements, or AHA, which involve Luna Loa Developments LLC, West View Developments LLC and Plumeria in Waikoloa Llc.

The authorities say that these companies were owned, controlled and used by the defendants to obtain public benefits related to development projects in southern Kohala, Kailua-Kona and Waikoloa.

Through the AHA, the defendants fraudulently obtained at least $ 10.98 million in excessive lands and housing credits, prosecutors allege.

The federals also argue that Sulla washed the income of the alleged conspiracy and scheme in an attempt to hide, among other things, the source, location and property of that income.

The conspiracy and understanding of honest services fraud to the cable with a maximum fine of 20 years in prison for each crime and a fine of $ 250,000 after the conviction.

Money laundering entails a maximum fine of 20 years in prison and a fine of the double value of the property involved in the transaction, which prosecutors say it is more than $ 1 million.

Send an email to John Burnett to [email protected].