According to the U.S. Department of Justice (DoJ), Issa Asad, of Southwest Ranches, FL, and Q Link Wireless LLC, of Dania Beach, FL, pleaded guilty yesterday to conspiring to defraud and commit offenses against the United States in connection with a years-long scheme to steal over $100 million from the FCC’s Lifeline program, providing discounted phone service to people in need. Asad is Q Link’s CEO.
During their guilty pleas, Asad and Q Link Wireless agreed with the charges that they purposefully conspired to defraud Lifeline. According to the DoJ, beginning as early as 2012 and continuing through at least 2021, Q Link, directed by Asad, made repeated false claims for reimbursement. They took and retained Lifeline funds that the telecom was not entitled to receive, provided false information about its Lifeline customers, and deceived the FCC about its compliance with program rules. Asad directed these illegal activities and conspired with others to commit the fraud, according to the DoJ.
According to court records, “the defendants engaged in multiple tricks designed to mislead the FCC about how many people were actually using Q Link’s Lifeline phones, and to prevent customers who did not want the phones from ending their relationship with Q Link (which would have prevented Q Link from billing the program for them). The defendants manufactured non-existent cell phone activity and engaged in coercive marketing techniques to get people to remain Q Link customers.”
Once the telecom and Asad learned the Commission was investigating Q Link’s Lifeline billing, they created and provided false records to the FCC to conceal the scam and to continue collecting reimbursement. As part of this plan, Asad and the company manufactured cell phone activity on behalf of Q Link customers who were not using their cell phones, according to the DoJ. “At no point did Q Link amend past Lifeline claims for customers who were not using their cell phones or return any of the Lifeline payments,” states the DoJ.
The plea agreements state that a reasonable estimate of the total actual loss to the FCC was more than $109 million. As part of his plea, Asad admitted that he personally received approximately $15 million from Q Link as a result of the fraud.
Asad’s plea agreement contains a recommendation that he serve the statutory maximum sentence of five years’ imprisonment on Count 1, which is conspiring to commit wire fraud and to steal government money, and also with conspiring to defraud the United States.
Asad pleaded guilty as well to Count 2, which charges him with money laundering. The statutory maximum sentence on Count 2 is 10 years’ imprisonment.
Asad’s sentence will be determined by the Court after considering federal sentencing guidelines and other factors. Asad and Q Link agreed to pay the total restitution of $109,637,057 to the FCC no later than their sentencing hearings, which are set for January 15, 2025.
Reacting to the guilty plea, FCC Chairwoman Jessica Rosenworcel stated: “Deceptive schemes that exploit at-risk communities and manipulate federal support for phone and broadband services should not go unpunished. As this investigation escalated, the FCC proactively took extraordinary steps to protect the current Lifeline fund, while preventing any service disruption, including withholding tens of millions in Lifeline payments from Q Link to prevent disbursements that would be in violation of program rules.” She added the agency will continue to take steps to help law enforcement agencies account for misuse of taxpayer dollars and protect the integrity of Lifeline.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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