A Florida-based telecommunications carrier and its owner have agreed to pay more than $100 million to settle criminal charges and civil allegations in connection with their participation in a program that provided discounted phone services to qualified consumers.
The company, Q Link Wireless of Dania Beach, Florida, and its owner, Issa Asad, will pay $110,637,057 in connection with its participation in the Lifeline Program, an FCC initiative intended to provide low-income consumers with discounted rates for their telecommunications services.
Specifically, Q Link and Asad reportedly submitted fraudulent payment claims under the Lifeline Program for customers who failed to use their cellphones consistent with the Program’s minimum usage requirements (at least once every 30 days), receiving more than $38 million in payments from Lifeline.
Further, according to the FCC, the parties provided “false and fabricated” records to support their fraudulent claims of customers’ phone use and the payments due to them.
As part of its settlement with the FCC, Q Link and Asad pled guilty to charges that they conspired to commit wire fraud and theft of government funds. The parties also pleaded guilty to money laundering. Finally, Q Link and Asad agreed to cooperate with the FCC in transitioning its Lifeline customers to other Lifeline telecommunications service providers and not to participate in any program administered by the FCC.
The FCC’s article on its settlement with Q Link and Asad is available at https://docs.fcc.gov/public/attachments/DOC-413300A1.pdf.
