A South Florida business executive has been sentenced to five years in prison after he and his telecom company defrauded two major U.S. government programs. The CEO of Q Link Wireless, Issa Asad, was found guilty of orchestrating a massive fraud that targeted both the Federal Communications Commission’s (FCC) Lifeline program and the Paycheck Protection Program (PPP) created during the COVID-19 pandemic. Authorities say Asad and his company wrongfully took more than $100 million in taxpayer money meant to help struggling families and businesses.
Massive Fraud Against Government Programs Exposed
The Lifeline program is designed to help low-income Americans afford basic phone and internet services. But between 2012 and 2021, Q Link Wireless, under Asad’s direction, submitted false claims and misled federal regulators to gain money it wasn’t entitled to. The FCC was billed for services that were never used, and Q Link made it hard for customers to cancel service—just so the company could keep collecting government money.
To keep people on the service, Q Link used scare tactics, like automated messages saying their Medicaid or food stamps would be canceled if they didn’t stay enrolled. These messages were false but helped Q Link retain customers they could continue billing the FCC for.
“This was a brazen scheme of staggering proportions,” said Kareem Carter, Executive Special Agent in Charge of IRS Criminal Investigation. “Mr. Asad prioritized his own greed, stealing $100 million from taxpayers.”
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When the FCC started investigating, Asad and Q Link created fake records to cover their tracks instead of correcting the false claims. Over $50 million in funds was transferred to bank accounts in Jordan controlled by Asad and a relative. In total, the fraudulent activity caused a loss of $109 million to the federal Lifeline program.
COVID Relief Funds Also Misused
In addition to cheating the FCC program, Asad also scammed the Paycheck Protection Program, which was designed to help small businesses survive the COVID-19 pandemic. He submitted false information about Q Link’s financial state to secure federal relief funds.
Instead of using the money to support employees or business operations, Asad used the PPP loan to pay for luxury items, including jewelry, personal credit card bills, a Land Rover, and property taxes.
Because of these crimes, Asad was also convicted of money laundering. This charge was tied to moving and spending the stolen PPP funds in ways meant to hide their illegal source.
Record-Breaking Penalties and Prison Time
As part of the sentence:
- Issa Asad was sentenced to 60 months (5 years) in federal prison.
- Q Link Wireless must pay a $109 million forfeiture money judgment.
- Asad and Q Link jointly owe $109,637,057 in restitution to the FCC.
- Asad paid $1.76 million to the Small Business Administration (SBA) for the PPP fraud.
- He also forfeited $17.48 million in personal assets.
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U.S. Attorney Hayden P. O’ Byrne of the Southern District of Florida emphasized the severity of the crime, saying, “This outcome underscores our resolve to make sure those who mastermind corporate fraud schemes face personal consequences.”
“This sentencing sends an important message,” added Fara Damelin, Inspector General of the FCC. “Egregious criminal misconduct against FCC programs will not go unanswered.”
Bladismir Rojo, Acting Inspector in Charge of the U.S. Postal Inspection Service, said Asad “used the cover of a legitimate business to line his pockets at the expense of taxpayers and vulnerable communities.”
The investigation was a joint effort by the FCC Office of Inspector General, IRS Criminal Investigation, the U.S. Postal Inspection Service, and the Special Inspector General for Pandemic Recovery (SIGPR).
According to the U.S. Department of Justice, this case marks the largest criminal fraud matter involving the FCC and the largest plea deal ever reached in the Southern District of Florida.