Issa Asad, the 51-year-old CEO of Florida-based telecommunications company Q Link Wireless LLC, was sentenced to five years in prison after pleading guilty to conspiring to commit wire fraud and steal federal funds from the Lifeline program. The Lifeline program, often referred to as the “Obama phone” initiative, subsidizes phone service for low-income Americans.

Asad and his company were found to have submitted false claims and inaccurate information about their Lifeline customers between 2012 and 2021. They collected funds they were not entitled to and misled the Federal Communications Commission (FCC) about their compliance, diverting millions meant for helping disadvantaged consumers.

In addition to the Lifeline fraud, Asad pleaded guilty to money laundering related to a government credit program designed to aid struggling businesses during the COVID-19 pandemic. He admitted to using Paycheck Protection Program (PPP) funds for personal expenses, including home construction, luxury vehicles, jewelry, and university tuition.

Financial penalties imposed on Asad and Q Link amount to over $128 million, including about $110 million in reparations to the FCC, a $17.5 million criminal fine, and $1.7 million paid to the Small Business Administration for PPP-related restitution. These represent some of the largest fines ever levied by the FCC.

Asad’s criminal history also includes a 2014 incident where he ran over a groundskeeper during a dispute, resulting in charges of misdemeanor culpable negligence, for which he received probation and a fine.

Government officials emphasized the significance of this case as a warning against corporate fraud. U.S. Attorney Hayden P. O’Bryne and representatives from the IRS and FCC Inspector General’s office highlighted their commitment to pursuing those who defraud vital programs designed to assist vulnerable populations.