A Florida businessman has been sentenced to five years in prison and fined over $128 million for orchestrating one of the largest frauds in the history of U.S. social programs, significantly impacting vulnerable communities, including many low-income Latinos and migrants.
According to CBS 12, Issa Asad, 52, the CEO of Q Link Wireless, pleaded guilty to defrauding the federal Lifeline program, commonly referred to as the "Obama phone" initiative. This program was designed to provide affordable phone and internet services to economically disadvantaged individuals.
For nearly a decade, Asad and his company fabricated thousands of fake clients, manipulated records, and submitted fraudulent claims to the Federal Communications Commission (FCC), pocketing over $109 million intended for those in dire need. Meanwhile, countless vulnerable families, such as those reliant on Medicaid or food stamps, were left without reliable access to essential communication tools.
The Scheme Unveiled
Court documents reveal that Q Link even resorted to using threatening robocalls to retain customers. One recorded message warned: “Hello, your Medicaid, Food Stamps, and Lifeline benefits are about to be canceled. To prevent cancellation, press 1 now...” In other instances, users attempting to cancel their service due to non-functioning phones were advised to simply turn their devices on once every 30 days to maintain their subsidy, despite the phone's uselessness.
Luxury Lifestyle at the Expense of the Needy
When the FCC began its investigation, Asad and his company created fake records to continue receiving reimbursements. Prosecutors described it as “a brazen and systematic fraud.” But Asad didn’t stop at defrauding just one program. He also misappropriated funds from the Paycheck Protection Program (PPP), established during the pandemic to assist small businesses, by lying about Q Link's losses to secure loans. These funds were then spent on building a mansion, paying for a Land Rover, jewelry, credit cards, and even donations to a university.
In total, Asad and his company have been ordered to pay back more than $128 million by a federal judge in Miami. This penalty marks the largest criminal sanction for FCC-related fraud in U.S. history.
A Checkered Past
This was not Asad's first run-in with the law. In 2014, he faced charges of homicide after hitting a gardener during a dispute over $65. Although the case concluded with a minor conviction for negligence and a fine of just $225, he now faces much harsher penalties.
“Stealing over $100 million from programs meant to aid people in their time of need is a crime against the entire nation,” stated Juan A. Vargas, U.S. Postal Service Inspector.
The South Florida prosecution noted that Asad not only diverted public funds but also undermined the government's ability to support those truly in need. Thousands of low-income individuals who relied on Q Link may have been left without coverage or actual service for years. The Department of Justice has released a website with information for current or former users of the company.
Understanding the Impact of the Fraud Case
What was the primary program defrauded by Issa Asad?
Issa Asad primarily defrauded the federal Lifeline program, also known as the "Obama phone" initiative, designed to provide affordable communication services to low-income individuals.
How did the fraud affect vulnerable communities?
The fraud deprived many vulnerable families, including those dependent on Medicaid and food stamps, of reliable access to basic communication tools, leaving them without necessary services.
What other program did Asad exploit during the pandemic?
Asad also exploited the Paycheck Protection Program (PPP) by falsifying claims about Q Link's financial losses to secure loans, which he then misused for personal luxuries.