A CEO faces jail after admitting to a $100m fraud targeting federal programmes providing discounted phone services and Covid-19 Pandemic Funding.
Issa Asad, CEO of Q Link Wireless LLC, based in Dania Beach, Florida, and his company pleaded guilty to a conspiracy involving.
Fraud Charges and Guilty Pleas
Both Asad and Q Link Wireless pleaded guilty to conspiracy charges under federal law. This involved wire fraud, stealing government funds, and defrauding the United States. Asad also admitted to a money laundering charge.
US District Judge Rodolfo A. Ruiz II accepted the guilty pleas and scheduled sentencing for January 15, 2025.
Sentencing and Financial Penalties
As part of the plea agreement, Asad faces up to five years in prison for the conspiracy charge and up to 10 years for money laundering. The court will determine the final sentence based on legal guidelines.
The company and its CEO have also agreed to pay $109 million in restitution to the Federal Communications Commission (FCC) by the sentencing date. Asad will pay nearly $1.8 million in restitution to the Small Business Administration (SBA) and forfeit over $17 million in assets.
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Impact of the Fraud
U.S. Attorney Markenzy Lapointe for the Southern District of Florida said:
“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.
“The plea agreements in this case impose extraordinary and unprecedented financial penalties, as they should. They also reflect our Office’s commitment to ensuring that individuals who orchestrate business scams are punished personally, not just corporations. That Asad cheated two different programs meant to help people in need makes this prosecution even more imperative. We will continue to investigate and prosecute vigorously all types of fraud, whether perpetrated by individuals or businesses, and seek justice for victims of these scams.”
Kareem Carter, Executive Special Agent in Charge of the IRS Criminal Investigation (IRS-CI), Washington, D.C. Field Office, added:
“These crimes are far from victimless, as they financially harm taxpayers and erode public trust in our government. I want to extend my gratitude to our law enforcement partners for their unwavering commitment to safeguarding the integrity of federal relief programs and ensuring that the system works for those it was designed to help.”
The Fraud
The fraud involved Q Link Wireless falsely claiming federal funds from the FCC’s Lifeline program, which provides discounted phone and broadband services to low-income individuals. Asad directed this scheme, submitting false claims and deceiving the FCC to continue receiving funds.
The company went to great lengths to prevent customers from discontinuing services, including using deceptive automated phone scripts to manipulate users into staying with Q Link.
In one instance, a customer service representative urged a caller to keep using their phone despite it not working.
Pandemic Relief Fraud
Asad also defrauded the Paycheck Protection Program (PPP), created to help businesses during the COVID-19 pandemic. He made false claims about Q Link’s financial status and used PPP funds for personal expenses, including home construction and luxury purchases.
