A Florida tech executive is heading to prison after orchestrating a massive fraud involving the government-subsidized “Obama phone” program.
Issa Asad, 51, CEO of Q Link Wireless LLC, was sentenced to five years behind bars and ordered to pay over $128 million in penalties and restitution after pleading guilty to wire fraud, money laundering, and stealing from federal programs. The Department of Justice called the case one of the largest financial penalties ever levied by the FCC.
Asad and his company admitted to defrauding the Lifeline program, a federal initiative that provides low-cost mobile service to low-income Americans. Though the program began in 1985, it was widely expanded during the Obama administration—hence the nickname “Obama phones.”
From 2012 to 2021, Q Link Wireless submitted fraudulent claims to the government, overstated subscriber numbers, and pocketed funds they weren’t eligible to receive. They also lied to federal regulators about their compliance with program rules.
In a separate case, Asad also pleaded guilty to laundering COVID-era Paycheck Protection Program (PPP) loans, which were intended to support struggling businesses. Instead, he used the money for luxury spending—including a Land Rover, jewelry, real estate, personal credit card payments, and even donations to a university.
Under the terms of his plea agreement, Asad will pay:
- $110 million to the Federal Communications Commission
- $17.5 million in criminal fines
- $1.7 million in restitution to the Small Business Administration
The Department of Justice said the case serves as a stark warning: federal relief programs are not a free-for-all—and fraud will be punished to the fullest extent of the law.