A Florida telecommunications executive is set to serve a five-year prison sentence, and his company faces a substantial financial penalty in connection with a fraudulent scheme involving the so-called "Obama phone" initiative.
Issa Asad, CEO of Q Link Wireless LLC, admitted guilt to charges of conspiring to commit wire fraud and misappropriating federal funds from the Lifeline program, a federal initiative dating back to the 1980s, as reported by Fox News.
The Lifeline program provides subsidized cellphone services to individuals with lower incomes. The term "Obama phone" gained notoriety in 2012 when a video surfaced featuring a protester outside a Mitt Romney event, who claimed her neighbors had received such phones. "Everybody in Cleveland low minority got Obama Phone. Keep Obama in President, you know? He gave us a phone, hes going to do more," the woman stated.
The video, which showed her among other demonstrators holding signs by the roadside, sparked speculation from Breitbart News about whether she was a paid agitator. According to Fox News, some telecommunications companies with Lifeline contracts adopted the "Obama phone" moniker, despite the government's lack of endorsement.
As reported by Breitbart News in 2013, opposition to the Lifeline program was mounting, particularly as Tracfone Wireless, a major beneficiary of the government subsidy, began advertising on influential news websites to defend the program. The recent Fox News article highlighted that Asad's sentence includes a $128 million fine for him and his company.
Further details from the U.S. Attorneys Office for the Southern District of Florida reveal that Asad also defrauded the Paycheck Protection Program (PPP), a federal initiative designed to provide forgivable loans to small businesses during the COVID-19 pandemic. Asad executed a fraudulent scheme to secure and retain PPP funds by making false statements about Q Link's business operations.
He falsely claimed that the pandemic had significantly reduced Q Link's Lifeline reimbursements. In 2021, Asad conducted an illegal financial transaction involving approximately $389,000 of these funds, which he used for personal expenses, including a Land Rover payment, personal credit card bills, jewelry, and property taxes.
In addition to these charges, Asad has a history of legal troubles. Fox News reported that he was previously charged with murder after allegedly running over a groundskeeper at his business. He later pleaded no contest to misdemeanor culpable negligence, resulting in a year of probation and a $225 fine.
This case underscores the ongoing challenges in ensuring accountability and integrity within federal assistance programs. It also highlights the potential for abuse when government initiatives, intended to support those in need, fall prey to fraudulent activities.
As the legal proceedings against Asad conclude, questions remain about the broader implications for the Lifeline program and similar initiatives.
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