Sherry Stone TRIBUNE STAFF WRITER
Abdur Rahim Islam, the former CEO of Universal Community Homes, was sentenced Tuesday to seven years in federal prison for multiple fraud and tax charges. He was also ordered to repay over $600,000 stolen from the organizations and more than $300,000 in back taxes owed to the IRS.
Convicted in March on various counts, including honest services wire fraud and filing false tax returns, the 67-year-old ran two nonprofits established by Philadelphia music legend Kenny Gamble and his wife, Faatimah. Alongside CFO Shahied Dawan, who was also convicted, Islam misused funds intended for community development and education.
Judge Gerald A. McHugh handed down the sentence, emphasizing the breach of trust involved. The nonprofits, funded through government grants and private donations, were supposed to support military families and provide affordable housing. Instead, Islam and Dawan exploited these funds for personal gain.
Court documents revealed that when revenues dropped significantly in 2011, Islam began submitting fraudulent claims to several Philadelphia charter schools, ultimately stealing nearly $109 million. They forged documents, awarded themselves unauthorized bonuses, and even used school funds for personal travel and expenses.
In related actions, the pair allegedly bribed a school board member in Wisconsin to secure contracts for new charter schools. Dawan received an 18-month sentence and additional fines, highlighting a widespread scheme to defraud both the nonprofits and the federal government.
U.S. Attorney Jacqueline C. Romero condemned their actions, stating, “Islam stole from charities founded to improve the lives of disadvantaged Philadelphians.” The case underscores the ongoing efforts to hold accountable those who misuse charitable organizations for personal enrichment.