Queens Construction President Sentenced to Four Years for $12 Million Homeless Shelter Fraud

Liaquat Cheema, the 65-year-old president of Queens-based AFL Construction Co. Inc., was sentenced yesterday to four years in prison for orchestrating a fraudulent scheme involving approximately $12 million in New York City homeless shelter contracts. U.S. District Judge Lorna G. Schofield imposed the sentence in the Southern District of New York, following Cheema's guilty plea to conspiracy to commit wire fraud on March 5, 2024.

In addition to the prison term, Cheema, an East Elmhurst resident, received two years of supervised release and was ordered to pay restitution and forfeiture totaling $3,267,811. U.S. Attorney Jay Clayton stated, "Liaquat Cheema stole millions of dollars in public funds intended to pay for maintenance at homeless shelters in New York City."

AFL Construction Co. Inc. held public contracts to perform general contracting work, including maintenance, landscaping, roofing, and snow removal, at various city homeless shelters. From at least 2014 through 2017, Cheema and others submitted fraudulent invoices and documentation, falsely claiming work was performed by non-existent individuals and inflating material costs. These documents often included unauthorized identities and even the Social Security number of a purported worker.

The scheme also involved fraudulently obtaining tens of thousands of dollars in Medicaid benefits. Cheema and his co-conspirators submitted false certifications that underreported their incomes, using nearly identical employment letters with a deceased "Project Manager's" name and signature to secure benefits for which they were ineligible. As part of his plea, Cheema agreed to repay the misappropriated Medicaid funds.

The investigation was a collaborative effort by the U.S. Department of Labor Office of Inspector General and the New York City Department of Investigation. Jocelyn Strauber, NYC-DOI Commissioner, highlighted the severity of the offense, noting that the theft of funds intended for vulnerable residents carries serious consequences.