Florida CEO Sentenced to 5 Years in $128M Phone Scam

Breaking Down the Sentence: What Happened in the Florida Phone Scam

A South Florida CEO was handed a five‑year prison term and ordered to pay a total of $128 million after pleading guilty to orchestrating an “Obama phone” scam that bilked low‑income assistance programs out of funds meant to help vulnerable communities. Issa Asad, 51, of Southwest Ranches, Florida, admitted directing Q Link Wireless LLC in submitting false reimbursement claims to the Federal Communications Commission’s Lifeline program—and laundering money through the Paycheck Protection Program—between 2012 and 2021.

Key Facts at a Glance

• Defendant: Issa Asad, CEO of Q Link Wireless LLC
• Sentence: 60 months’ imprisonment, plus supervised release
• Financial Penalties: $109.6 million restitution to the FCC; $1.76 million to the SBA; $17.48 million forfeiture—totaling over $128 million.
• Programs Defrauded: Lifeline (FCC) and Paycheck Protection Program (SBA)

How the Scheme Worked

Q Link, under Asad’s direction, engaged in multiple deceptive practices to maximize Lifeline reimbursements:

• False Activity Claims: They manufactured non‑existent cellphone usage, billing the FCC for lines never in service.
• Coercive Scripts: Automated calls warned customers their benefits would be canceled unless they pressed a number to stay enrolled, trapping them in the program.
• Falsified Records: Asad and co‑conspirators provided forged documents to conceal the fraud once regulators began investigating.

The Human Impact: Why It Matters

While the Lifeline program exists to bridge the digital divide for low‑income households, this massive fraud diverted funds away from people relying on discounted phone and broadband services to access jobs, healthcare, and education. As U.S. Attorney Hayden P. O’Byrne stated, “These outcomes underscore our resolve to make sure that those who mastermind corporate fraud schemes face personal consequences.”.

Lessons for Small and Medium Businesses

1. Strengthen Internal Controls
   • Implement rigorous auditing of program‑related billing.
   • Train staff on ethical compliance and whistleblower protections.
2. Monitor Regulatory Changes
   • Stay up to date on Lifeline and SBA guidelines—loopholes often close quickly.
3. Invest in Data Analytics
   • Use analytics tools to flag unusual usage patterns before they become red flags.

• Discover how compliance measures can protect your business today!
• Find out more about safeguarding your company against fraud!

Referencing the Official Announcement

As @USAO_SDFL shared on X, “Issa Asad and his company, Q Link Wireless, deliberately scammed two vital government programs aimed at supporting people and companies in economic distress,” highlighting the collaboration between DOJ, FCC‑OIG, IRS‑CI, SIGPR, and USPIS in bringing this case to light X (formerly Twitter).

Next Steps: Protecting Your Organization

• Conduct Regular Risk Assessments: Evaluate exposure to federal subsidy programs.
• Engage Legal Counsel Early: Seek guidance when designing marketing and enrollment scripts.
• Adopt Transparency Practices: Publicly commit to ethical standards to build trust with regulators and customers.

Closing Thoughts

The sentencing of Issa Asad sends a clear warning: high‑profile executives who abuse public assistance programs will face serious consequences. By adopting robust compliance frameworks, businesses can both avoid legal jeopardy and uphold their social responsibility.