Florida-based telecommunications company Q Link Wireless and its CEO, Issa Asad, are at the center of one of the largest fraud cases involving a federal assistance program in recent memory.
Asad, 51, was sentenced to five years in prison after pleading guilty to stealing more than $110 million from the FCC’s Lifeline program—a federal initiative created to provide low-income individuals with affordable phone services.
Massive Fraud Targeted Federal Lifeline Program
The Lifeline program, established in 1985 and expanded under the Obama administration, provides subsidized phone service to low-income Americans. It was nicknamed the “Obama phone” program during the 2012 election cycle, though the government never officially used that term.
According to the U.S. Department of Justice, Asad and Q Link Wireless admitted to submitting false information about customers from 2012 to 2021, manipulating records to receive funds they weren’t entitled to.
“Stealing over $100 million for programs meant to support people in times of need is a crime against the entire nation,” said Juan A. Vargas, Inspector in Charge of the U.S. Postal Inspection Service’s Miami Division.
Record-Setting Financial Penalties
The case has resulted in one of the largest financial penalties in the FCC’s history. Both Asad and Q Link agreed to pay more than $128 million in penalties and restitution. Of that amount, nearly $110 million will be returned to the Federal Communications Commission (FCC). Additionally, Asad personally paid:
- $17.5 million in criminal penalties for the Lifeline fraud
- $1.7 million in restitution to the Small Business Administration (SBA) after laundering COVID-era Paycheck Protection Program (PPP) loans
Asad used PPP funds for personal luxuries, including property taxes, a Land Rover payment, jewelry, and home construction, according to Fox Business.
