PHILADELPHIA (KYW Newsradio) — A federal jury on Wednesday found the former CEO of a Philadelphia community development nonprofit guilty of all 18 counts of bribery and fraud against him. The jury acquitted another former executive at the nonprofit of all but one charge.
Rahim Islam, former CEO of Universal Companies, was accused of defrauding the company, founded by Philadelphia music icon Kenny Gamble, through excessive bonuses and expense reimbursements. Prosecutors also charged that he bribed a Milwaukee school official to give Universal a second charter school there.
Universal’s former CFO Shahied Dawan was accused of aiding him. However, the jury convicted Dawan only of helping Islam prepare a false tax return.
The two men were indicted more than four years ago, along with City Council President Kenyatta Johnson, who was then a district Council member. The judge ordered that the charges involving Johnson be tried separately. Johnson was acquitted of all charges in November of 2022. Islam and Dawan were acquitted of bribing Johnson at that time.
However, at the follow-up trial, this month, the Milwaukee school official testified against the two men. The government also presented millions of documents to make the fraud case.
“Islam and Dawan conspired to defraud the government — and, therefore, taxpayers — out of revenue,” said U.S. Attorney Romero. “Today’s verdict holds them accountable for doing so, and holds Islam responsible for his years-long pattern of criminal activity. He treated Universal like a virtual ATM, shortchanging its charter schools’ students and the community in the process.”
Islam’s attorney, David Laigaie, said he’s disappointed in the verdict.
“We respect the jury process and are weighing options moving forward,” he said.
The Universal Companies issued a statement saying it's relieved by the verdict. "The jury has proved the breach of trust, and we will seek full restitution for the losses incurred. Universal Companies can now devote its time and resources exclusively to its dedicated missions," it said.