The CEO of Florida-based Q Link Wireless, Issa Asad, was sentenced to five years in prison after pleading guilty to defrauding the federal Lifeline program, commonly known as the “Obama phone” initiative, which provides subsidized phone services to low-income Americans.
Asad, 51, and his company admitted last year to conspiring to commit wire fraud and steal government funds. Between 2012 and 2021, they submitted false information about Lifeline clients, filed bogus reimbursement claims, and retained program funds they were not entitled to. The Department of Justice said this misconduct undermined a program intended to assist vulnerable households.
In addition to prison time, Asad and Q Link must pay over $128 million in fines and reparations, including $110 million to the Federal Communications Commission and $17.5 million in criminal fines for profits derived from Lifeline services. The DOJ described this as one of the largest financial penalties in FCC history.
The case also included Asad’s guilty plea to money laundering from the COVID-era Paycheck Protection Program, amounting to $1.7 million in restitution. Authorities said he misused PPP funds to pay for luxury items, property taxes, and personal expenses.
