Issa Asad, CEO of Q Link Wireless LLC, has been sentenced to five years in prison after pleading guilty to defrauding the federal Lifeline program—popularly known as the “Obama phone” program—which provides subsidized phone services to low-income individuals. The Department of Justice stated that Asad and his company submitted false claims to the Federal Communications Commission (FCC) from 2012 to 2021, receiving millions in government reimbursements to which they weren’t entitled.

In addition to jail time, Asad and Q Link Wireless must pay over $128 million in restitution and penalties. This includes about $110 million to the FCC and a $17.5 million criminal fine. The financial penalties are among the largest ever imposed by the FCC in a corporate fraud case.

Separately, Asad pleaded guilty to laundering funds from the Paycheck Protection Program (PPP), a government relief program meant to help struggling businesses during the COVID-19 pandemic. He misused nearly $1.7 million in PPP funds on personal expenses, including home construction, luxury vehicle payments, jewelry, property taxes, and university donations.

Authorities emphasized that Asad’s fraudulent activities harmed programs intended to support vulnerable populations and small businesses. U.S. Attorney Hayden P. O’Byrne described the scheme as a deliberate scam for personal enrichment. Federal investigators praised the sentencing as a strong message that those who exploit public funds will be held accountable.

Asad has a prior criminal history, including a 2014 misdemeanor conviction for culpable negligence after a deadly incident involving a groundskeeper. His latest conviction reinforces the government’s resolve to pursue and prosecute corporate executives engaged in large-scale fraud.