A telecommunications provider based in Broward County, along with its CEO, has admitted to defrauding the U.S. government. The scheme involved stealing over $100 million from the federal Lifeline program, which offers discounted phone service to low-income individuals. Q Link Wireless CEO, Issa Asad, and the company based in Dania Beach were also involved in money laundering related to the Paycheck Protection Program (PPP) designed to help businesses affected by the COVID-19 pandemic.
During a hearing in Miami, both defendants pleaded guilty to wire fraud, stealing government money, and money laundering. As part of their plea agreements, Asad and Q Link agreed to pay $109,637,057 in restitution to the Federal Communications Commission (FCC). Asad separately agreed to pay $1,758,339.25 to the U.S. Small Business Administration (SBA) and faces a forfeiture judgment of at least $17,484,118.
The Lifeline program is intended to make communication services more affordable for low-income consumers. However, Asad and his company submitted false claims for reimbursement, misled the FCC about customer usage, and used coercive marketing tactics to retain customers. Investigators found that Asad fraudulently obtained PPP funds by misrepresenting the impact of the pandemic on Q Link’s business, diverting funds for personal expenses like home construction and luxury purchases.
Sentencing for this case is scheduled for January 15th. It is a concerning issue when businesses and individuals take advantage of government programs meant to assist those in need. The misuse of funds not only harms taxpayers but also undermines the effectiveness of these vital programs. It is crucial for authorities to investigate and prosecute cases of fraud to maintain the integrity of government assistance initiatives.
