Telecom CEO Pleads Guilty to $100M Federal Fraud Targeting Aid Programs

Issa Asad, CEO of Q Link Wireless, and the company admitted to defrauding over $100 million from federal programs.Photo byFilipe NobreonUnsplash

The U.S. Attorney’s Office for the Southern District of Florida announced today that Issa Asad, 51, of Southwest Ranches, Florida, and Q Link Wireless LLC, based in Dania Beach, Florida, have pleaded guilty to defrauding over $100 million from federal programs designed to assist individuals and businesses impacted by the COVID-19 pandemic.

Asad, the CEO of Q Link, admitted to conspiring to commit wire fraud and defraud the United States, and to laundering money as part of separate schemes targeting the Federal Communications Commission’s (FCC) Lifeline program and the Paycheck Protection Program (PPP), court records show.

According to the plea agreement and court documents, the fraudulent activities began as early as 2012. Asad and Q Link obtained Lifeline funds by submitting false claims, misrepresenting customer activity, and using deceptive practices to retain customers who no longer wanted the service.

As part of the plea deal, Asad and Q Link agreed to jointly pay $109.6 million in restitution to the FCC and $1.76 million to the U.S. Small Business Administration (SBA). Asad also agreed to forfeit at least $17.48 million in proceeds from the fraudulent schemes.

The fraudulent tactics cited in court records included an automated script used to coerce customers into remaining enrolled in Lifeline. One message falsely warned, “Your Medicaid, Food Stamp, and Lifeline benefits are about to be canceled. To avoid cancellation, press 1 now.”

This ensured that Q Link could continue billing the Lifeline program for those customers the department says.

When the FCC began investigating Q Link’s billing practices, Asad and others created false records to conceal the fraud and continue receiving reimbursements.

According to court documents, the total loss to the FCC was estimated at $109.6 million. Asad personally profited by approximately $15 million.

In a separate scheme, Asad fraudulently obtained PPP funds by falsely claiming that Q Link’s business had been adversely affected by the COVID-19 pandemic.

According to court records, he used the funds to construct a new home, make donations, purchase luxury items, and pay personal property taxes.

“Stealing over $100 million for programs meant to support people in times of need is a crime against the entire nation.” said Juan A. Vargas, Inspector in Charge, U.S. Postal Inspection Service, Miami Division in a statement.

“Asad and Q Link’s guilty pleas send a clear message: those who cheat the government for personal gain will be held accountable.”

Asad faces a maximum of 15 years in federal prison — five years for conspiracy and 10 years for money laundering, according to the department.