MIAMI—Issa Asad, the CEO of Q Link Wireless LLC, has pleaded guilty to conspiring to defraud and commit offenses against the U.S. government in connection with a years-long scheme to steal over $100 million from the FCC’s Lifeline program providing discounted phone and internet service to people in need.
Asad also pleaded guilty to laundering money from a separate scheme to defraud the Paycheck Protection Program, a different federal program meant to aid individuals and businesses hurt by the COVID-19 pandemic.
As part of the plea, Asad and Q Link agreed to jointly pay jointly $109,637,057 in restitution to the FCC no later than at the time of their sentencing hearings. Asad separately agreed to pay $1,758,339.25 in restitution to the Small Business Administration and to pay a forfeiture judgment against him of at least $17,484,118.00.
“Issa Asad and his company, Q Link Wireless, purposefully defrauded two critical federal programs helping individuals and businesses suffering financial hardship, unlawfully taking hundreds of millions of dollars for their own use and profit, while obstructing the United States’ ability to help people who, unlike the Defendants, needed it,” said Markenzy Lapointe, U.S. Attorney for the Southern District of Florida.
FCC chair Jessica Rosenworcel also applauded the prosecution. “The Lifeline program helps low-income families stay connected via phone and internet to their school, work, or loved ones,” she said. “Deceptive schemes that exploit at-risk communities and manipulate federal support for phone and broadband services should not go unpunished. I want to thank the dedicated investigators at the FCC and the Justice Department for pursuing this case and bringing the fraudsters behind this scheme to justice. As this investigation escalated, the FCC proactively took extraordinary steps to protect the current Lifeline fund, while preventing any service disruption, including withholding tens of millions in Lifeline payments from Q Link to prevent disbursements that would be in violation of program rules. The FCC will continue to take steps to assist our law enforcement agencies to account for misuse of taxpayer dollars and protect the integrity and success of FCC programs.”
Asad and Q Link each pleaded guilty to charges of conspiracy to commit wire fraud and steal government money, and also to conspiring to defraud the United States in violation of Title 18, United States Code, Section 371. Asad also pleaded guilty to money-laundering charges in violation of Title 18, United States Code, Section 1957. Both defendants also pleaded guilty to the Information’s forfeiture allegations.
U.S. District Judge Rodolfo A. Ruiz II set the defendants’ sentencing hearings for Jan. 15.
