The case involving Q Link Wireless and its CEO, Asad Issa, has revealed a massive fraud that spanned from 2012 to at least 2021, exploiting the Federal Communications Commission’s (FCC) Lifeline program designed to provide telecommunications services to low-income Americans. The fraudulent activities led to significant losses of government funds intended for those in need.
Q Link engaged in several deceptive practices to defraud the Lifeline program. The company made false claims for reimbursement and provided misleading information about its customers’ usage patterns. To maintain eligibility and continued billing, Q Link created fake cellphone activity data, even when customers were not using their phones. Moreover, the company employed coercive marketing techniques, misleading customers into believing they would lose benefits if they canceled their Lifeline services. This approach helped retain a customer base for fraudulent billing purposes.
The fraud extended beyond just the Lifeline program. Asad Issa also engaged in Paycheck Protection Program (PPP) fraud during the pandemic. He falsely claimed that Q Link’s Lifeline reimbursements had significantly decreased due to the pandemic, despite continued revenue from the program. Consequently, loan proceeds were misused for personal benefits such as constructing a new home, donating to a local university, purchasing jewelry, and paying property taxes.
The total estimated loss from the Lifeline fraud is $109,637,057, with Asad admitting to receiving approximately $15 million personally. In addition to these losses, PPP-related charges further increase potential sentencing considerations for the fraudulent activities.
Multiple agencies, including Homeland Security Investigations (HSI) and the Special Inspector General for Pandemic Recovery (SIGPR), investigated this case. Their coordinated response underscores the importance of vigilance against fraud, particularly during times when public funds are critical for support and relief.
Assistant U.S. Attorneys Elizabeth Young, Dan Bernstein, John Shipway, Joshua Pastor, and Sara Klco are handling various aspects of this case. Q Link has been ordered to pay significant restitution and penalties for their fraudulent activities.
Q Link Wireless subscribers interested in more information about the investigation or their rights can access provided links for further details.
This case serves as a cautionary tale about the importance of transparency and accountability in government-funded programs, highlighting the ongoing efforts by law enforcement and regulatory bodies to combat fraud.
According to: justice.gov