Florida Telecom CEO Sentenced to Five Years and Fined $128 Million for ‘Obama Phone’ Fraud

Florida Telecom CEO Sentenced to 5 Years for ‘Obama Phone’ Fraud
A Florida telecommunications CEO faces five years in prison after pleading guilty to stealing funds from a government program commonly known as the “Obama phone.” This initiative provides affordable phone services to low-income Americans.

Guilty Plea and Charges
Last year, Issa Asad, 51, and his company Q Link Wireless LLC admitted to conspiring to commit wire fraud and embezzling federal funds from the Lifeline program, the Department of Justice confirmed. Lifeline, launched in 1985 and expanded during the Obama administration, helps disadvantaged individuals access subsidized mobile phone services.

The Origins of the “Obama Phone” Controversy
During the 2012 election, Lifeline came under scrutiny after a viral video showed a Cleveland woman claiming she and her friends received “Obama phones.” While some Lifeline providers embraced the nickname, government officials rejected it.

Heavy Fines and Restitution
Asad received a five-year prison sentence. Both he and Q Link were ordered to pay over $128 million in fines and restitution, according to the DOJ. Specifically, they agreed to repay about $110 million to the Federal Communications Commission (FCC).

Money Laundering Charges
In addition to Lifeline fraud, Asad pleaded guilty to laundering money from a government credit program designed to help businesses during the COVID-19 pandemic. He reimbursed the Small Business Administration nearly $1.7 million in Paycheck Protection Program (PPP) funds.

Misuse of Pandemic Relief Funds
The DOJ revealed Asad used PPP loans to build a house, buy a Land Rover, pay personal credit card bills, cover property taxes, purchase jewelry, and provide gifts related to university expenses.

Fraud Details
From 2012 to 2021, Asad and Q Link submitted false client information to Lifeline and filed fraudulent claims for reimbursement. They kept funds they were not entitled to and lied about compliance with program rules.

A Troubled Past
According to the Miami Herald, Asad previously faced criminal charges in 2014 after running over a groundskeeper in a dispute over a $65 lawn service bill. He pleaded not guilty to misdemeanor culpable negligence and received probation and a fine.

Officials React to the Sentencing
U.S. Attorney Hayden P. O’Byrne stated, “Asad and Q Link intentionally defrauded critical government programs, siphoning off hundreds of millions meant for those in financial distress.” He emphasized the government’s dedication to holding fraudsters accountable.

IRS Criminal Investigation Chief Kareem Carter added, “This audacious scheme prioritized personal greed over taxpayers, embezzling $100 million. Our teams will continue pursuing justice.”

FCC Inspector General Fara Damelin said, “This sentencing sends a clear message: fraud against FCC programs will not be tolerated. Our investigators, along with DOJ and other partners, remain committed to fighting waste, fraud, and abuse that harm vulnerable communities.”

Related Posts

“My Husband Left for a Business Trip — Minutes Later, My Six-Year-Old Whispered, ‘Mommy… We Have to Run. Now.’”

My husband Derek had just left for a business trip when my six-year-old daughter tugged my sleeve with trembling fingers and whispered words that would shatter everything…

My husband kissed my forehead and said, “France. Just a short business trip.”

My husband kissed my forehead and said, “France. Just a short business trip.” A few hours later, as I stepped out of the operating room, my heart…

My eight-year-old son was beaten nearly to death in his grandfather’s driveway while three grown men laughed and held him down.

My eight-year-old son was beaten nearly to death in his grandfather’s driveway while three grown men laughed and held him down. That sentence still does not feel…

Never Had To Speak Until One Day Everything Changed

Wyatt came downstairs with that half-smile he had been wearing since he was seventeen, the one that meant he had already decided how the room was going…

I Was the Only One at My Grandpa’s Funeral Until a General Saw His Ring and Asked Me One Question

The Quiet Man As told by his granddaughter My grandfather was the quietest person in every room he ever entered. Not shy, not withdrawn, not socially inept…

My Parents Threw Me Out at 16 Until Years Later They Came Begging Without Knowing Who I Had Become

The Inheritance I was staring at the email when I realized my hands were shaking. The message glowed on my monitor, framed by the wide glass walls…