Issa Asad, 51, of Southwest Ranches, Florida, was sentenced on Thursday for orchestrating a years-long scheme that defrauded the federal authorities of greater than $100 million.
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Asad, who’s the CEO of Q Hyperlink Wi-fi LLC based mostly in Dania Seaside, Florida, was convicted of conspiring to commit wire fraud and defraud the USA in reference to a federal program that gives discounted cellphone companies to low-income Individuals. He was additionally sentenced for laundering cash from a separate fraud involving the Paycheck Safety Program (PPP).
Asad acquired a 60-month jail sentence. Q Hyperlink Wi-fi agreed to pay a forfeiture judgment exceeding $109 million, and collectively, Asad and the corporate can pay over $109 million in restitution to the Federal Communications Fee (FCC). Moreover, Asad individually paid almost $1.8 million to the Small Enterprise Affiliation and forfeited greater than $17 million, bringing the whole monetary penalties and restitution to over $128 million.
In accordance with prosecutors, beginning as early as 2012 and persevering with by 2021, Asad and Q Hyperlink knowingly submitted false claims to the FCC’s Lifeline program, which helps low-income customers afford cellphone and web service. They offered pretend buyer knowledge, manufactured nonexistent cellphone exercise, and used misleading techniques to stop prospects from canceling service — all to maintain billing the federal government for companies by no means rendered.
One notably egregious instance concerned an automatic cellphone script falsely warning prospects that their authorities advantages could be canceled until they remained enrolled, coercing them into persevering with service. When the FCC launched an investigation, Asad and his firm tried to cowl up the fraud by creating false information and persevering with to invoice this system.
Individually, Asad additionally defrauded the Paycheck Safety Program, designed to help companies in the course of the Covid-19 pandemic, by making false claims about Q Hyperlink’s monetary losses and misusing mortgage funds for private bills reminiscent of luxurious autos, jewellery, and bank card payments.
“This sentencing sends a transparent message that those that rip-off authorities packages designed to assist weak communities might be held accountable,” mentioned U.S. Lawyer Hayden P. O’Byrne. Officers from the IRS, FCC, and U.S. Postal Inspection Service praised the investigation and emphasised their dedication to defending taxpayer-funded packages.
This case represents the biggest legal matter involving the FCC and the largest legal plea deal within the historical past of the Southern District of Florida.
