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.
Asad also paid the Small Business Administration about $1.7 million in restitution for laundering loan profits from the Paycheck Protection Program (PPP) during the outbreak.
According to the DOJ, he confessed to using PPP money for house building, a Land Rover payment, his personal American Express card, property taxes, jewelry, and university gifts.
Asad and Q Link acknowledged in court to defrauding the FCC’s Lifeline program.
Between 2012 and 2021, Asad and Q Link presented inaccurate information about their Lifeline clients and submitted many bogus claims for government reimbursement. They also admitted to keeping Lifeline monies that they were not entitled to and misled the FCC about the company’s compliance with program guidelines.
Asad has a criminal history and was charged with murder in 2014 after running over a groundskeeper at his business over a dispute over paying $65 for lawn services.
He eventually pleaded not guilty to misdemeanor culpable negligence and received one year of probation and a $225 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,” stated U.S. Attorney Hayden P. O’ Byrne for the Southern District of Florida. “These outcomes underscore our resolve to make sure that those who mastermind corporate fraud schemes face personal consequences.”
“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,” said Executive Special Agent in Charge Kareem Carterof the Internal Revenue Service – Criminal Investigation (IRS-CI), Washington, D.C. Field Office. “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.”
“Q Link and Asad stole funds from a key FCC program meant to serve low-income households,” said Inspector General Fara Damelin of the FCC, Office of Inspector General (FCC-OIG).
“This sentencing sends an important message that egregious criminal misconduct against FCC programs will not go unanswered. FCC OIG investigators and their law enforcement partners at DOJ, IRS, SIGPR, and USPIS, did an outstanding job on this investigation, and we thank FCC for its assistance. 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,” Damelin added.
The Employee Humiliated a Poorly Dressed Old Woman in Line — Then One Truth Changed Everything
“You do realize how much time you’re wasting for other people?! Wrong documents again!” — the employee threw out with cold contempt, humiliating the poorly dressed old woman right in front of the entire line. But only a few minutes later, something happened that made the woman bitterly regret her words… 😳
— You do realize how much time you’re wasting for other people?! Wrong documents again! — the employee said irritably, not even trying to hide her contempt…
Old Marta silently pressed a worn blue folder to her chest. She had come to the pension office with only one request — to correct a mistake in the documents because of which several years of her work record had not been counted.
Those years could have increased her pension at least enough so that she would not have to save money on medicine during winter…
— But they told me only these were needed.
But that seemed to irritate the employee named Diana even more.
She demonstratively flipped through the papers, deliberately wasted time, sighed loudly, and rolled her eyes so the whole line could hear:
— At your age, you should already have learned how to prepare documents properly. Go and bring more certificates. Next!
People in the line began to grow nervous. Someone clicked their tongue in annoyance, someone looked at Marta as if she were the one to blame for the delay.
And Diana seemed to enjoy the humiliation — her voice grew louder and her smile more venomous…
Marta slowly stepped aside toward the wall, lowering her head. It looked as if she was about to cry. But a few minutes later, something happened that made Diana turn pale before everyone’s eyes… and silence fell over the line… 😳
Continuation in the first comment 👇👇
A few minutes later, the office doors suddenly opened, and the branch manager, Mr. Roberts, walked in quickly. His face was grim, and in his hands he held a tablet with recordings from the security cameras.
He immediately approached Marta and, to everyone’s surprise, said gently:
— Ma’am, please come forward. Your issue will be resolved right now.
Dead silence filled the room.
Diana tried to explain something, but Roberts did not even let her finish.
— I watched your work for several minutes through the cameras. Instead of helping an elderly person, you decided to boost yourself at her expense by humiliating her in front of the entire line.
The employee’s face changed instantly. Just moments ago confident and arrogant, she now stood pale and confused, unable to raise her eyes.
And then something happened that no one expected…
Roberts personally took Marta’s folder, quickly reviewed the documents, and within minutes it became clear that all the required certificates were there. The mistake was in the office’s own system.
— Her work record must be recalculated immediately, — he said coldly.
Marta could barely hold back her tears. For many long months, he was the first person who had treated her like a human being…
But the hardest blow was still waiting for Diana.
The manager turned to her and said in front of everyone:
— From this moment on, you no longer work here. An employee who humiliates people instead of helping them has no right to hold this position.
Silence hung in the line, and then someone quietly began to applaud Marta…
