Florida CEO Gets 5 Years in Prison, $128M Fine In ‘Obama Phone’ Scam
The owner of a Florida telecommunications company was sentenced to five years in jail after pleading guilty to stealing from the government program known informally as “Obama phone,” which provides cheap phone services to low-income consumers.
Q Link Wireless LLC and its 51-year-old CEO, Issa Asad, pled guilty last year to conspiring to conduct wire fraud and steal federal funds from the Lifeline program, the Department of Justice said.
Obama expanded the program in 1985, providing subsidized mobile service to the underprivileged. It was extensively attacked during the 2012 election, when a viral video surfaced showing a lady in Cleveland alleging she and her companions were handed “Obama phones.”
Fox Business noted that some telecommunication providers with Lifeline contracts welcomed the moniker, but the government did not.
Asad was sentenced to five years in jail, and he and the corporation were required to pay financial penalties and reparations totaling more than $128 million, according to the agency.
Separately, Asad pled guilty to money laundering from a government credit scheme designed to help struggling companies amid the COVID-19 epidemic.
Under the plea agreements, Asad and Q Link agreed to pay the Federal Communications Commission about $110 million in reparations. Asad also paid a nearly $17.5 million criminal fine for profits derived from Q Link’s phone service plan.
The DOJ stated that this was one of the highest financial fines imposed by the FCC in its history.
Asad also paid the Small Business Administration about $1.7 million in restitution for laundering loan profits from the Paycheck Protection Program (PPP) during the outbreak.
According to the DOJ, he confessed to using PPP money for house building, a Land Rover payment, his personal American Express card, property taxes, jewelry, and university gifts.
Asad and Q Link acknowledged in court to defrauding the FCC’s Lifeline program.
Between 2012 and 2021, Asad and Q Link presented inaccurate information about their Lifeline clients and submitted many bogus claims for government reimbursement. They also admitted to keeping Lifeline monies that they were not entitled to and misled the FCC about the company’s compliance with program guidelines.
Asad has a criminal history and was charged with murder in 2014 after running over a groundskeeper at his business over a dispute over paying $65 for lawn services.
He eventually pleaded not guilty to misdemeanor culpable negligence and received one year of probation and a $225 fine.
“Issa Asad and his company, Q Link Wireless, deliberately scammed two vital government programs aimed at supporting people and companies in economic distress, wrongfully diverting hundreds of millions of dollars for their personal benefit and gain, all while impeding the government’s capacity to assist those who genuinely required the help,” stated U.S. Attorney Hayden P. O’ Byrne for the Southern District of Florida. “These outcomes underscore our resolve to make sure that those who mastermind corporate fraud schemes face personal consequences.”
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” said Executive Special Agent in Charge Kareem Carterof the Internal Revenue Service – Criminal Investigation (IRS-CI), Washington, D.C. Field Office. “This was a brazen scheme of staggering proportions. Mr. Asad prioritized his own greed, stealing $100 million from taxpayers. Today’s sentencing sends a clear message that our Global Illicit Financial Team and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“Q Link and Asad stole funds from a key FCC program meant to serve low-income households,” said Inspector General Fara Damelin of the FCC, Office of Inspector General (FCC-OIG).
“This sentencing sends an important message that egregious criminal misconduct against FCC programs will not go unanswered. FCC OIG investigators and their law enforcement partners at DOJ, IRS, SIGPR, and USPIS, did an outstanding job on this investigation, and we thank FCC for its assistance. FCC OIG is dedicated to stopping waste, fraud, and abuse, and will continue to vigorously pursue investigations against wrongdoers who defraud FCC programs and victimize our most vulnerable populations,” Damelin added.
Thune Breaks With Trump, Backs Cornyn After Paxton Endorsement
Senate Majority Leader John Thune said Tuesday he will continue supporting Sen. John Cornyn despite President Donald Trump endorsing Texas Attorney General Ken Paxton in one of the most closely watched Republican Senate primaries of the 2026 cycle.
Speaking to reporters following Trump’s endorsement announcement, Thune praised Cornyn as “a principled conservative” and an “effective senator” for Texas, signaling a rare split between Senate Republican leadership and the president.
“Cornyn is a principled conservative. He is a very effective senator for the state of Texas,” Thune said.
“None of us can control what the president does. That doesn’t change the way I feel. I will continue to be supportive of Senator Cornyn in his re-election,” Thune added.
The comments came just hours after Trump formally endorsed Paxton on Truth Social, delivering a major boost to the Texas attorney general as he seeks to unseat Cornyn in the Republican runoff election.
In his endorsement, Trump criticized Cornyn for insufficient loyalty during politically difficult periods of his presidency.
“Ken Paxton has been a warrior for Texas values and for our America First agenda,” Trump wrote. He added that Cornyn “was not supportive of me when times were tough.”
The endorsement immediately intensified an already bitter and nationally significant Republican primary battle that has exposed growing tensions inside the GOP between establishment Senate Republicans and Trump-aligned populists.
Early voting in the runoff began Monday and continues through Friday, with Election Day set for May 26.
Despite the internal divisions, Thune expressed confidence Republicans would retain control of the Senate in November.
“I’m very confident we’ll hang on — and maybe even expand the majority of the United States Senate,” Thune said.
Republicans currently hold a six-seat Senate majority. Democrats would need a net gain of four seats to retake control of the chamber.
Several races, including contests in Maine, Michigan, and North Carolina, are currently viewed as highly competitive.
The Texas race has become particularly important because Democrats believe a bruising Republican runoff could weaken the eventual GOP nominee heading into the general election against Democratic candidate James Talarico.
Recent polling has suggested an unusually competitive general election environment in Texas. One survey released Monday reportedly showed both Cornyn and Paxton running roughly even with Talarico in hypothetical head-to-head matchups.
That possibility has alarmed some Republicans, particularly moderates concerned that Paxton’s legal controversies and polarizing political image could jeopardize a seat long considered safely Republican.
Sen. Lisa Murkowski openly criticized Trump’s endorsement Tuesday, warning it could backfire politically.
“I was supremely disappointed,” Murkowski said. “How does that help strengthen the president’s hand when we lose a state like Texas?”
Paxton has remained a dominant figure among Texas conservatives despite years of legal and political controversies, including securities fraud charges that were later resolved and an impeachment battle in the Texas legislature from which he was ultimately acquitted by the state Senate.
Trump allies have framed the race as a test of loyalty to the president and the broader America First movement, while Cornyn supporters argue the longtime senator offers stability, fundraising strength, and legislative experience critical for maintaining Republican control of the Senate.
Cornyn, who has served in the Senate since 2002 and previously chaired the National Republican Senatorial Committee, has longstanding ties to GOP leadership and donor networks in Washington. But critics on the right have increasingly portrayed him as part of the party establishment out of step with the Republican base.
Paxton has sought to capitalize on that frustration, presenting himself as a fighter aligned more closely with Trump’s populist agenda on immigration, election integrity, and federal power.
The runoff has also become a broader proxy battle over the future direction of Senate Republicans after Trump’s sweeping victories reshaped the party.
