A Florida entrepreneur has been hit with a staggering $128 million fine and sentenced to five years in prison after he and his telecommunications company exploited the 2010s “Obamaphone” program to scam low-income individuals out of millions of dollars on the false pretenses of providing them with affordable cell phone service, a scam that the IRS described as “staggering” in a press release.
For background, on July 25, 2025, the United States Attorney’s Office for the Southern District of Florida announced that Issa Asad, a Florida CEO who ran the telecom company Q Link Wireless, had been sentenced for stealing over $100 million from a federal program that provided low-cost “Obamaphone” service to people in need. As a result, Asad and his company were required to pay the Federal Communications Commission (FCC) over $128 million in restitution.
Moreover, the U.S. Attorney’s Office reported that Asad, along with his company, was charged for “conspiring to defraud and commit offenses against the United States,” and as a result, the CEO was obligated to pay $128 million in restitution after prosecutors determined that he “deliberately scammed” the Federal Communications Commission (FCC).
In addition, U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida explained that Asad’s scam involved “wrongfully diverting hundreds of millions of dollars” to Q Link and away from “people and companies in economic distress” by exploiting the so-called “Obamaphone” program. U.S. Attorney O’Byrne added that the scheme impeded “the government’s capacity to assist those who genuinely required the help.”
Furthermore, Executive Special Agent in Charge Kareem Carter of the Internal Revenue Service’s Criminal Investigation Division (IRS-CI) said that Asad had orchestrated “a brazen scheme of staggering proportions,” adding, “Mr. Asad prioritized his own greed, stealing $100 million from taxpayers.”
Continuing, Executive Special Agent in Charge Carter said that Asad’s sentencing and the massive penalties facing him “sends a clear message that our Global Illicit Financial Team and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
Additionally, the U.S. Attorney’s Office provided more details regarding Asad’s scheme, explaining that Q Link “engaged in multiple tricks designed to mislead the FCC about how many people were actually using Q Link’s Lifeline phones,” referring to the telecom company’s devices participating in the “Obamaphone” program. Q Link was also accused of having “manufactured non-existent cellphone activity and engaged in coercive marketing techniques to get people to remain Q Link customers.”
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To make matters worse, Asad’s company reportedly lied to customers using an automated message: “Hello, your Medicaid, Food Stamp and Lifeline benefits are about to get cancelled. To avoid cancellation of these benefits, press 1 now to indicate that you wish to remain enrolled in these government programs.” According to the U.S. Attorney’s Office, this message was intended to “coerce customers into accepting Lifeline services.” As a result, Asad was reportedly sentenced to five years in prison.
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