PHILADELPHIA, PA — Abdur Rahim Islam, the former CEO of Universal Community Homes (UCH) and Universal Education Companies (UEC), has been sentenced to 84 months in prison. United States Attorney Jacqueline C. Romero announced the decision on Tuesday, July 16, 2024. Islam’s sentence follows convictions on 18 counts of fraud, corruption, and tax charges.
United States District Court Judge Gerald A. McHugh also ordered Islam to forfeit over $609,000. He must pay restitution to both Universal and the IRS, totaling more than $900,000. Additionally, Islam is required to pay an $1,800 special assessment.
Islam’s crimes involved the theft of more than half a million dollars from UCH and UEC. These organizations, founded by Philadelphia music legend Kenny Gamble and his wife, aim to provide affordable housing and manage charter schools in the city. Islam was also found guilty of bribing the president of the Milwaukee public schools board and cheating on six years of personal income taxes.
The trial revealed that Islam and his co-defendant, Shahied Dawan, used their positions to embezzle funds. They paid themselves unauthorized bonuses and submitted fraudulent expense reimbursements. These expenses included personal trips, family vacations, first-class travel, and luxury entertainment.
Islam and Dawan concealed these illegal payments from the IRS, allowing Islam to evade taxes for six years. Islam also bribed Dr. Michael Bonds, the former president of the Milwaukee public schools board, who has pleaded guilty and faces sentencing next month.
Judge McHugh had previously sentenced Dawan to 18 months in prison and a $15,000 fine. Dawan was also ordered to pay almost $200,000 in restitution to the IRS.
“Islam stole from charities meant to help disadvantaged Philadelphians,” said U.S. Attorney Romero. “We will hold accountable anyone who defrauds their employer or cheats the government and taxpayers.”
FBI Special Agent Wayne A. Jacobs and IRS Criminal Investigation Special Agent Denise Leuenberger emphasized the gravity of Islam’s actions and the ongoing commitment to combating corruption.
The case was investigated by the FBI and IRS Criminal Investigation Division, with support from the Department of Education Office of Inspector General. Assistant United States Attorneys Mark B. Dubnoff and Linwood C. Wright, Jr. prosecuted the case.
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