DANIA BEACH, FL — In one of the most significant federal telecom fraud settlements in recent years, Q Link Wireless LLC and its owner Issa Asad have consented to pay over $110 million to settle both criminal charges and civil claims related to an extensive scheme that defrauded the federal Lifeline Program, which is a vital communications subsidy for low-income Americans.
The global resolution of $110.6 million, revealed on Monday, arises from a collaborative federal investigation into allegations that Q Link and Asad intentionally submitted false claims to the Federal Communications Commission’s (FCC) Lifeline Program — unlawfully pocketing tens of millions of taxpayer dollars through deceptive practices.
A Scheme Built on Deception
At the heart of the case is the Lifeline Program, created by Congress in 1996 to guarantee that low-income households have access to essential phone services. Providers like Q Link receive federal reimbursements in return for offering discounted phone services — but only for customers who actually utilize the service at least once every 30 days.
However, according to federal prosecutors, Q Link and Asad took advantage of the system by:
- Charging the FCC for inactive or non-existent customers
- Submitting fraudulent reports to indicate fake phone usage
- Falsifying data — including for phones that were in the FCC’s possession at the time
- Generating bogus cellphone activity to keep billing for customers who should have been removed from the program
Between February 2018 and October 2019, the scheme generated around $38.4 million in improper federal payments, investigators disclosed.
“This is a blatant abuse of a program meant to help those in need,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department will take action where companies and individuals knowingly violate the rules of federal programs and claim funds to which they are not entitled.”
The FCC echoed that sentiment, with Chairman Brendan Carr stating, “We take very seriously any instance of misuse of public funds. Protecting taxpayer dollars from waste, fraud, and abuse is central to our mission.”
Guilty Pleas and Criminal Sentencing
In a global resolution, Q Link and Asad entered guilty pleas on October 15, 2024, for conspiring to commit wire fraud, stealing government funds, and defrauding the United States. Additionally, Asad admitted to money laundering in a separate but connected case.
On July 24, 2025, both were sentenced by U.S. District Judge Rodolfo A. Ruiz, II, and have consented to permanently withdraw from all programs administered by the FCC. They also agreed to help transition Q Link’s Lifeline customers to other eligible carriers.
“Fraudulent actors like Asad not only steal from the government — they steal from low-income Americans who rely on these programs to stay connected,” said U.S. Attorney Hayden O’Byrne for the Southern District of Florida. “This settlement sends a strong message: if you target vulnerable communities for profit, we will hold you accountable.”
FCC Inspector General Fara Damelin added, “The FCC OIG is committed to protecting our low-income subsidy programs from fraud. Today’s outcome shows that deceptive practices will be met with serious consequences.”
With nearly $2 billion allocated each year, the Lifeline Program is an essential resource for millions of Americans. Federal officials emphasize that even in light of this breach of trust, the program will persist — now under increased scrutiny of its providers. “This settlement reinforces our commitment to protect taxpayer funds and ensure that programs designed to serve vulnerable populations do just that,” said Shumate.
