Florida CEO Gets 5 Years in Prison, $128M Fine In ‘Obama Phone’ Scam

A Florida telecom executive has been sentenced to five years in federal prison after admitting to siphoning millions from the taxpayer-funded “Obama phone” program — a government initiative long criticized for waste and fraud.

Q Link Wireless LLC and its CEO, 51-year-old Issa Asad, pleaded guilty last year to conspiring to commit wire fraud and stealing federal funds from the Lifeline program, according to the Department of Justice.

The Lifeline program — originally launched in 1985 to provide subsidized phone service to low-income Americans — was expanded under President Barack Obama to include mobile service, a move that sparked widespread criticism during the 2012 election. The backlash intensified when a viral video showed a Cleveland woman boasting about receiving free “Obama phones.”

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While some participating telecom companies embraced the nickname, federal agencies did not.

As part of his sentence, Asad and Q Link must pay over $128 million in combined fines and restitution. That includes $110 million to the Federal Communications Commission (FCC) for fraudulent claims, as well as a nearly $17.5 million criminal fine tied to profits from the company’s phone service plans. The FCC called it one of the largest financial penalties in the agency’s history.

The Justice Department also revealed that Asad pleaded guilty to laundering money from the Paycheck Protection Program (PPP), a COVID-era loan program designed to help struggling businesses. He was ordered to pay the Small Business Administration $1.7 million in restitution for misusing PPP funds on personal expenses — including home construction, a Land Rover payment, credit card bills, property taxes, jewelry, and even donations to a university.

Between 2012 and 2021, Asad and Q Link admitted to submitting falsified Lifeline customer information, filing bogus reimbursement requests, and pocketing funds they were not entitled to — all while misleading the FCC about their compliance with program rules.

The disgraced CEO also has a checkered past. In 2014, he was charged with murder after running over a groundskeeper in a dispute over a $65 landscaping bill. He later pleaded not guilty to misdemeanor culpable negligence and was sentenced to probation with a small fine.

“Issa Asad and his company, Q Link Wireless, deliberately scammed two vital government programs aimed at supporting people and companies in economic distress, wrongfully diverting hundreds of millions of dollars for their personal benefit and gain, all while impeding the government’s capacity to assist those who genuinely required the help,” said U.S. Attorney Hayden P. O’ Byrne for the Southern District of Florida.

“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” added IRS Criminal Investigation Executive Special Agent in Charge Kareem Carter. “This was a brazen scheme of staggering proportions. Mr. Asad prioritized his own greed, stealing $100 million from taxpayers. Today’s sentencing sends a clear message that our Global Illicit Financial Team and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

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“Q Link and Asad stole funds from a key FCC program meant to serve low-income households,” said FCC Inspector General Fara Damelin. “This sentencing sends an important message that egregious criminal misconduct against FCC programs will not go unanswered… FCC OIG is dedicated to stopping waste, fraud, and abuse, and will continue to vigorously pursue investigations against wrongdoers who defraud FCC programs and victimize our most vulnerable populations.”

The case underscores a long-standing criticism from conservatives: poorly monitored federal welfare programs not only invite fraud but allow bad actors to live lavishly off taxpayer money while the truly needy are left behind.

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