Florida Telecom CEO Sentenced to 5 Years for ‘Obama Phone’ Fraud

A Florida telecommunications CEO faces five years in prison after pleading guilty to stealing funds from a government program commonly known as the “Obama phone.” This initiative provides affordable phone services to low-income Americans.

Guilty Plea and Charges

Last year, Issa Asad, 51, and his company Q Link Wireless LLC admitted to conspiring to commit wire fraud and embezzling federal funds from the Lifeline program, the Department of Justice confirmed. Lifeline, launched in 1985 and expanded during the Obama administration, helps disadvantaged individuals access subsidized mobile phone services.

The Origins of the “Obama Phone” Controversy

During the 2012 election, Lifeline came under scrutiny after a viral video showed a Cleveland woman claiming she and her friends received “Obama phones.” While some Lifeline providers embraced the nickname, government officials rejected it.

Heavy Fines and Restitution

Asad received a five-year prison sentence. Both he and Q Link were ordered to pay over $128 million in fines and restitution, according to the DOJ. Specifically, they agreed to repay about $110 million to the Federal Communications Commission (FCC).

Money Laundering Charges

In addition to Lifeline fraud, Asad pleaded guilty to laundering money from a government credit program designed to help businesses during the COVID-19 pandemic. He reimbursed the Small Business Administration nearly $1.7 million in Paycheck Protection Program (PPP) funds.

Misuse of Pandemic Relief Funds

The DOJ revealed Asad used PPP loans to build a house, buy a Land Rover, pay personal credit card bills, cover property taxes, purchase jewelry, and provide gifts related to university expenses.

Fraud Details

From 2012 to 2021, Asad and Q Link submitted false client information to Lifeline and filed fraudulent claims for reimbursement. They kept funds they were not entitled to and lied about compliance with program rules.

A Troubled Past

According to the Miami Herald, Asad previously faced criminal charges in 2014 after running over a groundskeeper in a dispute over a $65 lawn service bill. He pleaded not guilty to misdemeanor culpable negligence and received probation and a fine.

Officials React to the Sentencing

U.S. Attorney Hayden P. O’Byrne stated, “Asad and Q Link intentionally defrauded critical government programs, siphoning off hundreds of millions meant for those in financial distress.” He emphasized the government’s dedication to holding fraudsters accountable.

IRS Criminal Investigation Chief Kareem Carter added, “This audacious scheme prioritized personal greed over taxpayers, embezzling $100 million. Our teams will continue pursuing justice.”

FCC Inspector General Fara Damelin said, “This sentencing sends a clear message: fraud against FCC programs will not be tolerated. Our investigators, along with DOJ and other partners, remain committed to fighting waste, fraud, and abuse that harm vulnerable communities.”