‘Obama Phone’-Linked CEO Fined $128 Million and Sentenced to Five Years Imprisonment For Defrauding U.S. Government, Money Laundering

Sentencing Overview

- CEO Issa Asad and Q Link Wireless sentenced to five years in prison.

- Ordered to pay $128 million in fines.

- Involved in a scheme to steal over $100 million from the Lifeline program (Obama phones).

Background of the Scheme

- Q Link Wireless earned $618,736,494 from the Lifeline program between 2013 and 2019.

- Approximately 21% of payments were linked to fraudulent actions.

- Illegal activities included false claims for reimbursement and misleading the FCC.

Methods of Fraud

- Made false statements about customer eligibility.

- Prevented unwilling customers from opting out of the program.

- Used misleading scripts on calls to retain customers.

Examples of Fraudulent Activity

- Automated call script threatened cancellation of government benefits unless customers pressed 1.

- Inoperable phone issue led to the statement on continued device usage.

Cover-up Tactics

- Asad provided false records to the FCC during investigations.

- Created fictional cellphone usage to manipulate reimbursement claims.

- Losses of over $109 million reported to the FCC, with more than $50 million diverted to Jordanian accounts.

Post-Scheme Conduct

- In 2021, claimed financial loss due to COVID-19 while making unlawful transactions (approx. $389,000).

- Expenses included luxury payments and personal property.

Statements from Officials

- U. S. Attorney Hayden P. O’Byrne highlighted consequences for corporate fraud schemes.

- FCC Inspector General Fara Damelin emphasized commitment to investigate fraud against FCC programs. 

https://www.thegatewaypundit.com/2025/07/obama-phone-linked-ceo-fined-128-million-sentenced/