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Telecommunications CEO Pleads Guilty to $100 Million Fraud Scheme
Broward County CEO Pleads Guilty to $100 Million Fraud Scheme
MIAMI (WSVN) – A Broward County-based telecommunications provider and its CEO have pleaded guilty to conspiring to defraud the U.S. government in a scheme that stole more than $100 million from the federal Lifeline program. Issa Asad, the CEO of Q Link Wireless, admitted to laundering money from a separate fraud involving the Paycheck Protection Program (PPP) as well.
During a hearing in Miami, both defendants pleaded guilty to conspiring to commit wire fraud and stealing government money. As part of their plea agreements, Asad and Q Link agreed to pay over $109 million in restitution to the Federal Communications Commission (FCC) and Asad separately agreed to pay over $1.7 million to the U.S. Small Business Administration (SBA). He also faces a forfeiture judgment of at least $17 million.
The Lifeline program is designed to make communications services more affordable for low-income consumers, but Asad and his company submitted false claims for reimbursement, misled the FCC about customer usage, and used coercive marketing tactics to retain customers. Additionally, investigators found that Asad fraudulently obtained PPP funds by misrepresenting the impact of the pandemic on Q Link’s business and diverting funds for personal expenses, including home construction and luxury purchases.
Sentencing for Asad is scheduled for January 15. Stay tuned for more updates on this developing story.
