Issa Asad and Q Link Wireless Sentenced for Largest Federal Program Scam in History

Strategic Insights -

Issa Asad, the 51-year-old CEO of Q Link Wireless, and his company have been sentenced for conspiring to defraud the United States in connection with a years-long scheme to steal over $100 million from a federal program providing discounted phone service to people in need. Asad was also sentenced for laundering money from a separate scheme to defraud a different federal program meant to aid individuals and businesses hurt by the Covid-19 pandemic. Q Link agreed to pay a forfeiture money judgment of over $109 million and Asad and Q Link jointly paid $109,637,057 in restitution to the Federal Communications Commission (FCC).

Key Takeaways:

  • Issa Asad, 51, and Q Link Wireless LLC were sentenced for conspiring to defraud the United States and stealing over $100 million from the FCC's Lifeline program, which provides discounted phone service to low-income consumers.
  • Asad was sentenced to 60 months' imprisonment and Q Link agreed to pay a forfeiture money judgment of over $109 million and $109,637,057 in restitution to the FCC.
  • Asad was also sentenced for laundering money from a separate scheme to defraud the Paycheck Protection Program (PPP), which was created to provide forgivable loans to small businesses for job retention and certain other expenses.
  • Asad and Q Link engaged in multiple tricks to mislead the FCC about the number of people using Q Link's Lifeline phones and to prevent customers from ending their relationship with Q Link.
  • The scheme was investigated by the FCC-OIG, USPIS, IRS-CI's Global Illicit Financial Team, and Special Inspector General for Pandemic Recovery (SIGPR).
  • Assistant U.S. Attorneys Elizabeth Young and John Shipley prosecuted the case, with Assistant U.S. Attorneys Joshua Pastor and Mitch Hyman handling asset forfeiture and Assistant U.S. Attorney Danielle Croke handling restitution.

Statistics:

  • $100 million stolen from the FCC's Lifeline program
  • $109 million forfeiture money judgment
  • $109,637,057 restitution paid to the FCC
  • $389,000 in PPP loan proceeds unlawfully spent by Asad
  • 60 months' imprisonment for Asad
  • The largest criminal matter involving the FCC and the largest criminal plea deal in the history of Southern District of Florida.

Sources:

  • United States Attorney's Office for the Southern District of Florida (U.S. Attorney Hayden P. O' Byrne)
  • Internal Revenue Service - Criminal Investigation (IRS-CI) - Executive Special Agent in Charge Kareem Carter
  • Federal Communications Commission - Office of Inspector General (FCC-OIG) - Inspector General Fara Damelin
  • U.S. Postal Inspection Service (USPIS) - Acting Inspector in Charge Bladismir Rojo
  • United States Small Business Administration - Inspector General