Gary Zamber sentenced to 70 months for Hawaii County housing credits scam

U.S. District Judge Jill Otake sentenced Gary Zamber, 56, to 70 months in federal prison, followed by three years of supervised release, a $1,000 fine and an order to turn over $124,270 for his role in a scheme to defraud Hawaii County’s affordable housing credits program. The sentencing took place in federal district court in Honolulu.

Court filings and the judge’s remarks described a roughly seven-year conspiracy in which four residents exploited loopholes in the county’s system for handing out affordable housing credits to developers. Zamber was identified as the first of the four defendants to be sentenced. Over the course of the scheme, the four defendants fraudulently obtained almost $11 million worth of land and affordable housing credits, and Zamber personally pocketed about $177,000.

During the hearing, Judge Otake emphasized the wider impact of the crime on the islands’ housing crisis and on public confidence in government. “This state is in a crisis regarding housing. You know that. I know you know that,” she said. She added, “Crimes like this make affordable housing even less reachable.” The judge found Zamber to be the least culpable of the four men but nonetheless held him responsible for the harm caused to affordable housing stock and to community trust.

Two co-defendants named in court materials are attorney Paul Sulla and businessman Rajesh Budhabhatti; materials identify a total of four residents involved in the conspiracy. Zamber’s sentence included repayment of the money he received through the deal and the modest fine ordered by the court. Officials have not announced the sentences, if any, for the other defendants at this time.

For residents of the Big Island and Hawaii County, the case highlights vulnerabilities in a program designed to spur construction of affordable units. The loss or misallocation of housing credits and associated parcels can delay or reduce the number of homes available to local families and workers, compounding an already severe housing shortage on the islands. The judge’s language underlined how fraud in housing programs can have ripple effects beyond the courtroom, affecting access to homes and undermining confidence in local processes.

Zamber’s sentence closes one chapter in the wider case but leaves open significant questions for the community: how remaining defendants will be sentenced, whether additional restitution or remedies will be ordered, and what steps Hawaii County will take to prevent similar exploitation of housing credits. Residents who follow affordable housing issues should expect further court action and continued scrutiny of how credits are allocated on the Big Island.