DOJ Gains Guilty Pleas in FCC Lifeline Fraud Scheme

WASHINGTON, Oct. 18, 2024 - A scheme to defraud a federal internet access program for low-income consumers has been shut down by federal authorities after an Internet Service Provider and its CEO pleaded guilty to fraud charges.

The Florida based company, Q Link Wireless, and its CEO Issa Asad pleaded guilty to federal charges on Tuesday, including conspiring to defraud and commit offenses against the United States and money laundering after a conspiracy to steal more than $100 million from the Federal Communications Commission’s Lifeline access program was uncovered.

"Deceptive schemes that exploit at-risk communities and manipulate federal support for phone and broadband services should not go unpunished. I want to thank the dedicated investigators at the FCC and the Justice Department for pursuing this case and bringing the fraudsters behind this scheme to justice," said FCC Chairwoman Jessica Rosenworcel.

Federal officials alleged that the defendants manufactured non-existent cellphone activity and engaged in coercive marketing techniques to make consumers remain Q Link customers.

According to the U.S. attorney’s office for the Southern District of Florida, the scheme began as early as 2012 and continued through at least 2021.

The Lifeline program serves low-income consumers with affordable pricing for broadband internet and cell phone services.

Asad’s sentence has not yet been determined, and will be made available by the Court after a review of U.S. sentencing guidelines.