Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Liaquat Cheema, president of AFL Construction Co. Inc., was sentenced to four years in prison for leading a scheme that defrauded New York City out of millions intended for homeless shelter maintenance. The sentencing took place before U.S. District Judge Lorna G. Schofield after Cheema pled guilty to conspiracy to commit wire fraud earlier this year.
According to the U.S. Attorney for the Southern District of New York, Jay Clayton, Cheema’s actions involved stealing public funds meant for city homeless shelters. “Liaquat Cheema stole millions of dollars in public funds intended to pay for maintenance at homeless shelters in New York City,” said Clayton. “This Office has no tolerance for those who use public contracts intended to aid members of our society-in-need to fraudulently enrich themselves. We will aggressively pursue anyone who abuses public trust for personal profit.”
Cheema’s company, based in Queens, secured approximately $12 million in contracts with the city to perform general contracting work at homeless shelters, including locations within the Southern District of New York. These contracts covered services such as general maintenance, landscaping, roofing, and snow removal.
Between 2014 and 2017, Cheema and others submitted fraudulent invoices and documentation claiming work had been performed by individuals who had not actually worked on the projects. The documents also inflated material costs and used unauthorized identities—including names and Social Security numbers—of purported workers.
The investigation found that Cheema also received Medicaid benefits he was not eligible for by submitting false certifications that underreported income. Some employment letters included misrepresentations such as using the name and signature of a project manager who was deceased.
In addition to his prison sentence, Cheema received two years of supervised release and must pay $3,267,811 in restitution and forfeiture.
Jay Clayton commended the investigative efforts of both the U.S. Department of Labor Office of Inspector General and the New York City Department of Investigation.
The prosecution was led by Assistant U.S. Attorney Timothy V. Capozzi from the Complex Frauds and Cybercrime Unit.
