Issa Asad, a South Florida businessman and founder of the telecommunications company Q Link Wireless, has been sentenced to five years in federal prison and fined more than $128 million after finding himself guilty of leading a massive fraud scheme against the United States government. The case was described as one of the largest frauds involving the Federal Communications Commission (FCC) in the nation's history.
A systematic fraud against the Lifeline program
For nearly a decade, Assad ran a fraudulent operation targeting the Lifeline program, also known as the "Obama Phones" program, designed to provide free or low-cost access to telephone and internet services to low-income individuals. According to the federal indictment, between 2012 and 2021, he submitted millions of false claims to the FCC, illegally obtaining more than $109 million.
The scheme involved creating fake identities, registering customers without their consent, activating unnecessary services, and even manipulating records to make it seem like the phones were being used when they were actually turned off or faulty. All this was done to justify subsidies that never reached their legitimate beneficiaries.
The Justice Department revealed that Asad also used coercive robocalls to confuse users. These falsely warned them about the cancellation of benefits like Medicaid or SNAP if they didn't press "1" to retain service. "Hello, your Medicaid, Food Stamp, and Lifeline benefits are about to be canceled. To avoid cancellation, press 1 now..." read one of the recorded scripts that intimidated customers, according to court records.
Some people with unusable phones were told to turn them on once a month to avoid being deregistered from the system, allowing the company to continue billing the government.
He also defrauded pandemic relief funds.
At the same time, the businessman took advantage of the Paycheck Protection Program (PPP) created during the COVID-19 pandemic to assist small businesses in financial difficulty. Asad falsified financial information, received federal loans, and used them for lavish personal expenses: he bought a Land Rover, paid off credit cards, made private donations, and acquired a mansion.
Authorities determined that at least $389,000 of PPP funds were diverted to purposes unrelated to the program's purpose, which aggravated the criminal charge.
The highest penalty of its kind
As part of his sentence, Assad will have to pay more than $128 million, broken down into:
- $109,6 million in restitution to the FCC,
- $17,4 million in individual fines,
- And another $1,7 million in restitution to the Small Business Administration (SBA).
This agreement represents the largest criminal penalty ever imposed for an FCC-related fraud case and one of the most significant in the history of the Southern District of Florida.
The prosecutor's office emphasized that the fraud not only caused millions in losses to the public treasury, but also directly affected thousands of people in need, mostly low-income families, the elderly, people with disabilities, and beneficiaries of social programs who relied on telephone service for daily connectivity and security.
Official reactions
FCC Inspector General Fara Damelin called the case a "serious warning" to those who try to take advantage of public assistance programs. U.S. Attorney Hayden P. O'Byrne stated, "The defendant stole money intended for the nation's most vulnerable families and spent it on personal luxuries. This type of conduct will not go unpunished."
Background and profile of the accused
Issa Asad, 52, of Southwest Ranches, had already faced public attention in 2014, when he was linked to a vehicular homicide case after running over a worker during an argument over $65. At that time, he only paid a $225 fine. However, this case places him at the center of one of the largest corporate fraud scandals in recent history.
Despite his background, Asad continued to run and expand his company until a joint investigation by the FCC, the Department of Justice, and the Office of the Inspector General brought him to federal court.
“The theft of more than $100 million from programs intended for people in need is a crime against the entire nation,” said U.S. Postal Service Inspector Juan A. Vargas.
An emblematic case of corporate corruption
The case of Issa Asad and Q Link Wireless marks a milestone in the fight against social program fraud in the United States. It reveals flaws in oversight mechanisms and highlights the urgent need to strengthen oversight of public funds, especially those intended for vulnerable populations.
As Assad begins his sentence, thousands of families across the country continue to wait for these programs to be strengthened and finally reach those who truly need them.
