Education
Feb 07, 2026

CEO Hit With 5-Year Prison, $128M Penalty in ‘Obama Phone’ Fraud Case

The owner of a Florida telecommunications company was sentenced to five years in jail after pleading guilty to stealing from the government program known informally as “Obama phone,” which provides cheap phone services to low-income consumers.

Q Link Wireless LLC and its 51-year-old CEO, Issa Asad, pled guilty last year to conspiring to conduct wire fraud and steal federal funds from the Lifeline program, the Department of Justice said.

Obama expanded the program in 1985, providing subsidized mobile service to the underprivileged. It was extensively attacked during the 2012 election, when a viral video surfaced showing a lady in Cleveland alleging she and her companions were handed “Obama phones.”

Fox Business noted that some telecommunication providers with Lifeline contracts welcomed the moniker, but the government did not.

Asad was sentenced to five years in jail, and he and the corporation were required to pay financial penalties and reparations totaling more than $128 million, according to the agency.

Separately, Asad pled guilty to money laundering from a government credit scheme designed to help struggling companies amid the COVID-19 epidemic.

Under the plea agreements, Asad and Q Link agreed to pay the Federal Communications Commission about $110 million in reparations. Asad also paid a nearly $17.5 million criminal fine for profits derived from Q Link’s phone service plan.

The DOJ stated that this was one of the highest financial fines imposed by the FCC in its history.

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