Q Link Wireless LLC and Issa Asad to Pay More than $110M in Global Resolution to Resolve Criminal Charges and False Claims Act Allegations

Q Link Wireless LLC (Q Link) and its owner, Issa Asad (Asad), located in Dania Beach, Florida, have agreed to pay $110,637,057 to resolve criminal charges and civil allegations that they violated the False Claims Act by submitting false claims to the Federal Communications Commission’s (FCC’s) Lifeline Program. The Lifeline Program, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs.   

Eligible Telecommunications Carriers (ETCs), such as Q Link, receive monthly federal payments for providing discounted phone services to qualified consumers who must use their Lifeline phones at least once every 30 days. In order to qualify for Lifeline payments, ETCs certify their compliance with Lifeline rules, including the requirement to de-enroll and to stop submitting claims for customers that are not using their Lifeline phones.

The settlement resolves allegations that Q Link and Asad received monthly federal payments from the Lifeline Program that they were not entitled to through a scheme directed by Asad. The United States alleged that Q Link, Asad, and others conspired to knowingly submit and caused to be submitted false and fraudulent claims to Lifeline for customers who were not using their cellphones consistent with FCC usage regulations, including customers who did not possess activated phones. The United States also alleged that Q Link and Asad understood that Q Link was required to de-enroll and stop seeking payment for customers who were not using their phones consistent with the FCC’s usage rules. The United States further alleged that Q Link, Asad, and others, in order to deceive the FCC and in order to continue billing for Q Link’s customers, manufactured cellphone activity on behalf of Q Link customers who were not using their cellphones. The United States also alleged that, in order to obscure Q Link’s and Asad’s actions, Q Link provided false and fabricated records to the FCC purporting to show cellphone usage for customers who were not using their cellphones including for some cellphones that were actually in the FCC’s possession at the time. As a result of this alleged conduct, Q Link received approximately $38,438,541 in improper Lifeline payments between February 2018 and October 2019. Under the civil settlement, Q Link’s and Asad’s payment of the criminal restitution they owe related to the Lifeline Program will be credited toward the amount due under the civil settlement.

“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.”

“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.”

“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, Q Link and Asad entered into criminal plea agreements with the U.S. Attorney’s Office for the Southern District of Florida.  On Oct. 15, 2024, Q Link and Asad pled guilty to conspiring to commit wire fraud and theft of government funds and defrauding the United States, related to the conduct at issue in today’s civil settlement. Asad also pled guilty to money laundering arising from conduct not related to the civil investigation. Q Link and Asad were sentenced by United States District Judge Rodolfo A. Ruiz, II on July 24. In connection with the criminal resolution, Q Link and Asad further agreed to not participate in any program administered by the FCC and agree to cooperate in transitioning its Lifeline customers to other ETCs.

The civil False Claims Act resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Southern District of Florida, with assistance from the FCC’s Office of Inspector General and the FCC’s Office of General Counsel.

The civil False Claims Act investigation was handled by Trial Attorney David M. Sobotkin, Assistant United States Attorney Rosaline Chan, and former Assistant U.S. Attorneys Miriam L. Alinikoff and Christopher Cheek for the Southern District of Florida.

The claims resolved by the settlement are allegations only and there has been no determination of civil liability.