Q Link Wireless LLC and its owner, Issa Asad, based in Dania Beach, Florida, have agreed to pay more than $110 million to settle criminal charges and civil allegations related to the submission of false claims to the Federal Communications Commission’s (FCC) Lifeline Program. The Lifeline Program is a federal initiative created by Congress under the Telecommunications Act of 1996. It allocates nearly $2 billion each year to help low-income consumers with telecommunications services.
Eligible Telecommunications Carriers (ETCs) like Q Link receive monthly payments for providing discounted phone services to qualifying consumers. These carriers are required by FCC rules to ensure that customers use their Lifeline phones at least once every 30 days and must de-enroll those who do not meet this usage requirement.
The United States alleged that Q Link and Asad engaged in a scheme directed by Asad that resulted in receiving payments they were not entitled to from the Lifeline Program. Authorities stated that Q Link, Asad, and others conspired to knowingly submit false claims for customers who did not use their cellphones according to FCC regulations or did not possess activated phones. It was further alleged that Q Link and Asad were aware of the obligation to de-enroll inactive customers but failed to do so. Instead, they allegedly manufactured cellphone activity records for non-using customers and provided fabricated documents to the FCC as evidence of compliance—even for some devices already in the possession of the FCC.
This conduct led Q Link to receive about $38 million in improper payments between February 2018 and October 2019. Under the settlement terms, amounts paid toward criminal restitution will be credited against what is owed under the civil agreement.
“When individuals and corporations target programs that serve vulnerable populations to line their own pockets with millions, our office stands ready to investigate and pursue those allegations using all appropriate civil enforcement tools,” said U.S. Attorney Hayden O’Byrne for the Southern District of Florida. “This settlement addresses the integrity of the Lifeline Program, an important program that helps low-income Americans connect to people and information, a modern-day necessity.”
“The Justice Department will take action where companies and individuals knowingly violate the rules of federal programs and claim federal funds to which they are not entitled,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to preventing fraud against important FCC subsidy programs like Lifeline.”
“The FCC takes very seriously any instance of misuse of public funds and misrepresentation. Protecting taxpayer dollars from waste, fraud, and abuse is central to our work,” said FCC Chairman Brendan Carr. “I thank our partners at the Justice Department and the tireless teams at the FCC – including the Office of General Counsel and Office of Inspector General – for their relentless pursuit of this matter.”
“FCC OIG is committed to vigorously protecting FCC’s low-income subsidy programs and legitimate customers from telecommunications providers who use deceptive practices to perpetrate fraud,” said FCC Inspector General Fara Damelin. “We appreciate the dedication and outstanding work of our investigative team, our law enforcement partners at DOJ, and our FCC colleagues, in particular OGC, who together strengthen the integrity of FCC programs and ensure that bad actors are held accountable.”
As part of a global resolution with authorities, both Q Link Wireless LLC and Issa Asad entered into criminal plea agreements with prosecutors from the U.S. Attorney’s Office for the Southern District of Florida. On October 15, 2024, both parties pleaded guilty on charges including conspiracy related to wire fraud as well as theft from government funds connected with today’s civil settlement; Asad also admitted guilt on money laundering unrelated directly to these allegations.
On July 24th sentencing was handed down by United States District Judge Rodolfo A. Ruiz II; following this resolution both Q Link Wireless LLC and Issa Asad agreed not participate further in any program administered by the FCC and cooperate in transitioning current Lifeline subscribers over other ETCs.
The civil investigation involved cooperation among several agencies including local federal prosecutors in South Florida as well as units within the Justice Department Civil Division Fraud Section—with support from various offices within the FCC such as its Office Inspector General (OIG) and Office General Counsel (OGC).
The resolved claims remain only allegations without an admission or finding liability under civil law.
Court documents can be accessed through either www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov under case number 24-cr-20363.
