Queens-Based Construction Company President Sentenced to 4 Years for Defrauding City Out of Millions

Strategic Insights -

The president of a Queens-based construction company, Liaquat Cheema, has been sentenced to four years in federal prison after being found guilty of defrauding the city of millions of dollars through public contracts tied to homeless shelters. Cheema, 65, of East Elmhurst, headed AFL Construction, a city vendor with approximately $12 million in contracts for general maintenance, landscaping, roofing, and snow removal at shelters run by the Department of Homeless Services. Cheema pleaded guilty in March to conspiracy to commit wire fraud and has been ordered to pay over $3 million in restitution and forfeiture.

Key Takeaways:

  • Liaquat Cheema, the president of AFL Construction, was sentenced to four years in federal prison for defrauding the city of millions of dollars through public contracts tied to homeless shelters.
  • Cheema pleaded guilty in March to conspiracy to commit wire fraud and has been ordered to pay over $3 million in restitution and forfeiture.
  • AFL Construction had approximately $12 million in contracts for general maintenance, landscaping, roofing, and snow removal at shelters run by the Department of Homeless Services.
  • Cheema and several codefendants submitted fraudulent invoices and inflated costs for materials on city contracts, including listing workers who never performed the labor.
  • Authorities found that Cheema obtained tens of thousands of dollars in Medicaid benefits by underreporting his income.
  • Three of Cheema's codefendants were sentenced earlier this year for related fraud charges.
  • The Department of Investigation Commissioner, Jocelyn Strauber, emphasized that theft of funds intended to improve housing for city residents in need has serious consequences.

Statistics:

  • $12 million: The approximate amount of contracts AFL Construction had with the city for general maintenance, landscaping, roofing, and snow removal at homeless shelters.
  • 4 years: The length of Liaquat Cheema's prison sentence for conspiracy to commit wire fraud.
  • 3 million: The amount of restitution and forfeiture Cheema has been ordered to pay.
  • $12,000: The approximate amount of tens of thousands of dollars in Medicaid benefits Cheema obtained by underreporting his income.

Sources:

  • "Queens-Based Construction Company President Sentenced to 4 Years for Defrauding City Out of Millions" (unspecified source, exact date unavailable)
  • New York City Department of Investigation Press Release (exact date unavailable)
  • ABC news (exact date unavailable)