MIAMI (WSVN) – A Broward County-based telecommunications provider and its CEO pleaded guilty to conspiring to defraud the U.S. government in a scheme that stole more than $100 million from the federal Lifeline program, which provides discounted phone service to low-income individuals, according to the United States Department of Justice.
Issa Asad, the CEO of Q Link Wireless and the Dania Beach-based company also admitted to laundering money from a separate fraud involving the Paycheck Protection Program (PPP), created to aid businesses affected by the COVID-19 pandemic, according to the DOJ.
During a hearing in Miami on Tuesday, both defendants pleaded guilty to conspiring to commit wire fraud and stealing government money.
Additionally, Asad, 51, of Southwest Ranches, pleaded guilty to money laundering.
As part of their plea agreements, Asad and Q Link agreed to jointly pay $109,637,057 in restitution to the Federal Communications Commission (FCC) and Asad separately agreed to pay $1,758,339.25 to the U.S. Small Business Administration (SBA).
He also faces a forfeiture judgment of at least $17,484,118.
The Lifeline program aims to make communications services more affordable for low-income consumers, but Asad and his company submitted false claims for reimbursement, misled the FCC about customer usage, and used coercive marketing tactics to retain customers, according to the DOJ.
Additionally, investigators said that Asad fraudulently obtained PPP funds by misrepresenting the impact of the pandemic on Q Link’s business, diverting funds for personal expenses, including home construction and luxury purchases.
Sentencing is scheduled for Jan. 15.
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