CEO Sentenced for Lifeline Program Fraud

The owner of a Florida telecommunications company is now facing five years in prison, alongside a hefty fine, for his involvement in a fraudulent scheme related to the Lifeline program, often referred to in the media as the “Obama phone” fraud.

Issa Asad, the CEO of Q Link Wireless LLC, pleaded guilty to charges of wire fraud and conspiring to misappropriate federal funds—a program that’s been around since the 1980s. This was reported by Fox News recently.

The Lifeline program provides subsidized mobile phone services to those with low incomes. Back in 2012, a notable incident occurred during a Mitt Romney event where a protester claimed to have received an “Obama phone,” sparking widespread media attention.

When questioned about her support for Obama, one woman said, “Everyone in the Cleveland Law minority got Obama’s phone.” She expressed her belief in Obama’s leadership, seemingly unaware of the controversy surrounding the program.

A clip from that day showed her among a group of protesters, holding a sign, and there were speculations in the media about whether she might have been paid to protest.

Interestingly, the term “Obama’s Phone” gained traction after that video went viral, and while the government distanced itself from the label, telecommunications companies involved with Lifeline found it to be an acceptable reference.

By 2013, concerns about the Lifeline program began to grow among various stakeholders, including Tracfone Wireless.

Asad, as part of his sentencing, must pay $128 million alongside his prison time, according to the reports.

In a statement issued by the US Attorney’s Office for the Southern District of Florida, it was revealed that Asad had also exploited another federal initiative—the Paycheck Protection Program (PPP). This program was designed to assist small businesses during the COVID-19 pandemic, providing loans for job retention and operational costs. However, Asad made misleading statements about Q Link’s business, falsely claiming that the company’s Lifeline refunds had dramatically decreased due to the pandemic. He later engaged in illicit financial activities in 2021, misappropriating around $389,000 of this funding for personal expenses, including payments on a Land Rover and credit card charges.

Moreover, there were past reports about Asad being charged with murder years ago, linked to a case involving an employee at his business. Ultimately, he faced a plea agreement for a lesser charge and received probation along with a $225 fine.