In a significant ruling for New York City's battle against corruption, Liaquat Cheema, the former President of AFL Construction Co. Inc., received a four-year prison sentence for his involvement in a fraudulent scheme tied to homeless shelter contracts valued around $12 million. U.S. District Judge Lorna G. Schofield imposed the sentence, which also included two years of supervised release, and ordered Cheema to pay restitution and forfeiture amounting to over $3 million.
The case, spearheaded by the U.S. Attorney for the Southern District of New York, Jay Clayton, sheds light on a troubling exploitation of city contracts intended to benefit the homeless community. In March 2024, Cheema pled guilty to conspiracy to commit wire fraud, acknowledging his role in submitting fraudulent invoices and misrepresenting work and material costs related to shelter maintenance projects, such as landscaping, roofing, and snow removal. "Liaquat Cheema stole millions of dollars in public funds intended to pay for maintenance at homeless shelters in New York City," Clayton said, in a statement obtained by the U.S. Attorney's Office.
Additionally, Cheema and associates abused the Medicaid system by falsifying income reports to receive benefits they weren't entitled to. This involved the use of a deceased individual's identity to create employment letters for Medicaid. Following his conviction, Cheema agreed to reimburse the money he wrongfully acquired from Medicaid.
The investigation, acknowledged by Mr. Clayton, was conducted by the U.S. Department of Labor Office of Inspector General and the New York City Department of Investigation. The prosecution was handled by Assistant U.S. Attorney Timothy V. Capozzi of the Office’s Complex Frauds and Cybercrime Unit.
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