A major South Florida telecommunications company and its top officer pleaded guilty Tuesday to stealing more than $100 million from a federal government program known as “Lifeline” that provides discounted phone services to low-income customers.
Issa Asad, CEO of Q Link Wireless LLC, and the Dania Beach-based company pleaded guilty in Miami federal court to conspiring to defraud the U.S. government program, including theft of public funds.
At the same time, Asad, 51, of Southwest Ranches, also pleaded guilty to bilking a government loan program meant to help struggling businesses during the COVID-19 pandemic.
Under the terms of their separate plea deals, both Q Link and Asad agreed to pay $109,637,057 in restitution to the Federal Communications Commission by Jan. 15, 2025, the date of their sentencings before U.S. District Judge Rudolfo Ruiz. As part of his plea agreement, Asad also admitted that he personally received about $15 million from Q Link as a result of the company’s fraudulent billing activity.
Asad also separately agreed to pay $1,758,339 in restitution to the Small Business Administration for laundering loan proceeds from the Paycheck Protection Program during the pandemic. He admitted to using that fraudulent money for construction on his new home, and more than $140,000 on property taxes, jewelry and donations to a local university.
In addition, Asad agreed to pay a total forfeiture judgment of at least $17,484,118.
But Asad will pay with his freedom, too — as he faces the maximum of five years in prison on the fraud conviction under a joint recommendation by prosecutors with the U.S. Attorney’s Office and his defense lawyers with the firm Kobre & Kim. He also faces up to 10 years on the money laundering conviction stemming from the PPP loan fraud.
“The plea agreements in this case impose extraordinary and unprecedented financial penalties, as they should,” Markenzy Lapointe, the U.S. Attorney in the Southern District of Florida, said in a statement. “They also reflect our office’s commitment to ensuring that individuals who orchestrate business scams are punished personally, not just corporations.”
According to court records filed with the pleas, the defendants admitted to a longtime scheme to defraud the FCC’s Lifeline program. It makes everyday communications services more affordable for low-income customers by providing deep discounts on certain monthly cellphone service, broadband internet service and bundled voice-broadband packages purchased from participating telecom provider.
The defendants, Asad and Q Link, admitted that they purposely conspired to defraud the FCC program between 2012 and 2021 by providing false information about their Lifeline customers and making repeated false claims for government reimbursement. They also admitted to retaining Lifeline funds that they were not entitled to receive and deceiving the FCC about the company’s compliance with program rules.
“Asad directed these illegal activities and conspired with others to commit the fraud,” stated a news release by the U.S. Attorney’s Office in Miami.
When they learned the FCC was investigating Q Link’s Lifeline billing, both Asad and the company fabricated records to conceal the scam and to continue collecting reimbursements. In particular, they collaborated with others in simply manufacturing cellphone activity on behalf of Q Link customers who were not using their cell phones.
The case, filed this year, was investigated by the FCC, IRS, U.S. Postal Inspection Service and Special Inspector for Pandemic Recovery. It was prosecuted by assistant U.S. attorney Elizabeth Young, Dan Bernstein and John Shipley.
This story was originally published October 16, 2024 7:00 AM.
