A businessman from Florida was sentenced to five years in prison and fined more than 128 million dollars for being involved in one of the largest frauds in the history of social programs in the United States, directly affecting vulnerable communities, including many low-income Latinos and migrants.
According to CBS 12, Issa Asad, 52 years old, CEO of Q Link Wireless, pleaded guilty to defrauding the federal Lifeline program, popularly known as the "Obama phone" initiative, which was created to ensure access to telephone and internet services for individuals with limited financial resources.
For nearly a decade, Asad and his company created thousands of fake customers, manipulated records, and filed fraudulent claims with the Federal Communications Commission (FCC), allowing them to pocket over 109 million dollars intended to assist those in greatest need.
Meanwhile, many vulnerable families, such as those relying on Medicaid or food stamps, have been left without reliable access to basic communication tools.
According to court documents, Q Link even resorted to using threatening automated calls to retain customers. One of the recorded scripts warned:
“Hello, your Medicaid benefits, Food Stamps, and Lifeline are about to be canceled. To avoid cancellation, press 1 now...”.
In other cases, users who tried to cancel the service because their phones were not functioning were told to simply turn them on once every 30 days to avoid losing the subsidy, even if the device was useless.
When the FCC began investigating, Asad and his company fabricated false records to continue collecting reimbursements. "It was a brazen and systematic fraud," said prosecutors in the case.
From scamming the government to buying jewelry and a mansion
The entrepreneur did not settle for defrauding just one program. He also stole funds from the Paycheck Protection Program (PPP), created during the pandemic to assist small businesses. He lied about the losses of Q Link to obtain those loans, which he then spent on building his house, payments for a Land Rover, jewelry, credit cards, and even donations to a university.
In total, Asad and his company must repay more than 128 million dollars, as ordered by a federal judge in Miami. This is the largest criminal penalty for fraud related to the FCC in U.S. history.
A murky history
It was not the first time Asad found himself involved with the law. In 2014, he was accused of homicide after hitting a gardener during a dispute over 65 dollars. Although the case was resolved with a lesser conviction for negligence and a fine of just 225 dollars, he now faces much more severe consequences.
“The theft of over 100 million dollars from programs intended for individuals in times of need is a crime against the entire nation”, stated the inspector of the U.S. Postal Service Juan A. Vargas.
For its part, the Southern District of Florida prosecutor's office stated that Asad not only embezzled public funds but also sabotaged the government's ability to assist those who truly need help.
Thousands of low-income individuals who relied on Q Link may have been left without coverage or real service for years. The Department of Justice has launched a website with information for current or former users of the company: justice.gov/usao-sdfl/united-states-v-issa-asad.
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