Windham fraudster gets three years for swindling United Way out of $6.7M

CONCORD - A Windham man was sentenced on Friday in connection with his ownership of an international technology company that contracted with the United Way of Massachusetts Bay and Merrimack Valley (United Way) while being employed by United Way.

Imran Alrai, 51, was sentenced to 36 months in federal prison and a year of supervised release, according to a release from the U.S. Attorneys Office. Alrai was also ordered to pay restitution in the amount of $2.3 million. Alrai was convicted by a federal jury in October on 12 counts of wire fraud and 6 counts of money laundering.

Between 2012 and June 2018, Alrai, an IT professional at the United Way, obtained around $6.7 million in payments for IT services supposedly provided to United Way by an independent outside contractor, DigitalNet Technology Solutions, Inc. During this time Alrai misrepresented material facts about DigitalNet and fraudulently concealed that he owned and controlled the company. Through DigitalNet, Alrai overcharged United Way for the services he provided. In early 2013, Alrai rigged the bidding process for a major contract to provide managed IT services at the United Way so that DigitalNet was chosen. Alrai then gave fake references and false information about DigitalNet to United Way.

For the next five years, while serving as United Way's Vice President for IT Services, Alrai steered additional IT work to DigitalNet, so that his company soon became United Way's second largest outside vendor, receiving more than $1 million annually. Alrai concealed his connection with DigitalNet from his colleagues. He routinely sent emails with attached invoices from a fictitious person to himself at United Way.

After the fraud came to light, in June 2018, officials at the United Way confronted Alrai and terminated him. Federal agents executed search and seizure warrants and seized incriminating documents and data from Alrai's home office in Windham, as well as approximately $2.2 million in fraud proceeds in bank and investment accounts.

"For six years, the defendant carried out a calculated and sophisticated scheme to steal millions from a non-profit dedicated to uplifting our most vulnerable communities," said Acting U.S. Attorney Jay McCormack. "He exploited the organization's trust, fabricating companies, employees, and invoices- all to line his own pockets at the expense of those the non-profit was meant to serve."

Homeland Security Investigations and the Federal Bureau of Investigation led the investigation. The Internal Revenue Service provided valuable assistance. Assistant U.S. Attorneys Charles L. Rombeau and John J. Kennedy prosecuted the case.