Hello Mobile, Q-Link CEO Pleads Guilty to $100M Lifeline Fraud

The Miami Herald reports that Issa Asad, the CEO of Hello Mobile and Lifeline provider Q-Link Wireless, has pleaded guilty to stealing more than $100 million from the federal government’s Lifeline program between 2012 and 2021. Lifeline is a federal program that provides phone and internet services to low-income individuals. Asad admitted to conspiring to defraud the program, including theft of public funds. He also pleaded guilty to defrauding a government loan program designed to assist businesses during the COVID-19 pandemic.

Fraudulent Activities and Charges

As part of his plea, Asad agreed to repay $109,637,057 to the Federal Communications Commission (FCC) by January 15, 2025. He confessed to personally gaining $15 million from the scheme through fraudulent billing practices at Q-Link Mobile. He also agreed to pay nearly $1.8 million in restitution to the Small Business Administration for laundering loan proceeds from the Paycheck Protection Program during the COVID-19 Pandemic. Asad admitted to using those proceeds to build himself a new house as well as to pay for his property taxes, jewelry, and donations to a university.

As part of his sentence, Asad faces up to 15 years in prison and will be required to pay an additional forfeiture judgment of at least $17.5 million.

The investigation into Asad and his companies has been ongoing for several years. In June 2021, multiple government agencies, including the Department of Justice, IRS, and U.S. Postal Service, executed a search warrant at Q-Link Wireless’s corporate office, seizing several boxes of records. Investigators found that after learning of the FCC’s probe, Q-Link fabricated records to conceal its fraudulent activity, including making it appear that inactive customers were still using their services.

Previous Legal Troubles

This isn’t Asad’s first encounter with legal trouble. In 2014, he was initially charged with murder after running over a groundskeeper, Mike Kramer, during an argument over $65. A witness reported that Kramer asked if Asad intended to run him over, to which Asad allegedly replied, “If you don’t move, I’m going to run you over.” Investigators stated that Asad then accelerated and struck Kramer. Asad later pleaded no contest to misdemeanor culpable negligence, receiving one year of probation and a $255 fine.

What’s Next For Hello Mobile and Q-Link?

The fate of Hello Mobile and Q-Link as wireless providers seems to involve a takeover by StandUp Wireless, another Lifeline provider. Reddit users of both Hello Mobile and Q-Link report receiving messages that their services are now powered by StandUp Wireless(1, 2).