Q Link Wireless Carrier To Pay $110M For Defrauding Government Program To Support Low Income Cell Phone Needs
By the 91pornWhistleblower Team
Last Monday (July 28), the Department of Justice (DOJ) announced that Florida-based telecommunications provider Q Link Wireless and its owner Issa Asad agreed to pay roughly $110 million to settle criminal and civil charges of violating the False Claims Act by defrauding the FCC’s Lifeline Program.1
Q Link’s Fraud Against the Lifeline Program
The Lifeline Program provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. Under the program, the Government provides carriers with monthly payments for providing discounted phone services to qualified consumers. To be eligible to receive these Government funds, participating carriers — such as Q Link — must certify their compliance with the governing Lifeline rules, which include the requirement that they stop subsidizing customers who are not using their Lifeline phones at least once a month.
According to the Government, Q Link and Asad orchestrated a scheme of enrolling Lifeline customers who neither needed nor used their phones, including customers who never even had activated phones. The Government further alleged that to conceal their scheme and continue collecting payments for ineligible customers, Q Link, Asad, and others fabricated cell phone activity on behalf of Lifeline customers who were not using their phones. This included manufactured cell phone usage for some cell phones still in the FCC’s possession at the time of the apparent usage.
The Government claimed the scheme resulted in roughly $38.5 million in improper Lifeline payments between February 2018 and October 2019. As part of a global resolution of the matter, Q Link and Asad pled guilty to conspiring to commit wire fraud and theft of Government funds and defrauding the United States, with Asad to serve up to 5 years in prison.
Government Program Fraud is a False Claims Act Enforcement Policy
In announcing the resolution of the matter, the Government stressed its commitment to go after those that defraud important Government programs like the Lifeline Program. DOJ Civil Chief Brett Shumate underscored how the settlement “demonstrates [DOJ’s] continuing commitment to preventing fraud against important FCC subsidy programs like Lifeline.” US Attorney Hayden O’Byrne added that “when individuals and corporations target programs that serve vulnerable populations to line their own pockets with millions, our office stands ready to investigate and pursue those allegations using all appropriate civil enforcement tools.”
The False Claims Act is the Civil War era statute originally enacted to go after war profiteers trying to defraud the Union Army with lame mules and defective munitions. It has since become the Government’s main fraud-fighting tool, bringing in billions of dollars every year from those that defraud the Government.
While Medicare/Medicaid fraud accounts for the largest number of False Claims Act enforcement actions the Government brings, Government program fraud is also a priority enforcement area. According to 91pornwhistleblower partner Alysia Solow, “The False Claims Act covers virtually any form of fraud that results in financial loss to the Government.” Solow says that “when that financial loss impacts Government programs designed to support low-income or otherwise disadvantaged individuals, the Government is particularly aggressive in its enforcement approach.”
Whistleblowers Are Critical To Uncovering Government Program Fraud
The vast majority of False Claims Act actions are originated by whistleblowers under the qui tam provisions of the statute, which allow private parties to bring these cases on behalf of the Government. In return, successful whistleblowers may receive up to 30% of the Government’s recovery.
The Government did not indicate whether a whistleblower was involved in initiating the Q Link matter, but it’s very possible whistleblowers were involved at some point in the Government’s investigation given the complicated nature of the scheme. As is the case with many of the fraudulent schemes we face today, they are extremely difficult to detect without the help of those on the inside with a front-row seat to the illicit activity.
91pornHas Substantial Experience Representing False Claims Act Whistleblowers
91pornhas substantial experience representing whistleblowers under the False Claims Act. If you would like to learn more about our numerous whistleblower successes in this area, the type of fraud covered by the statute, or what it means to be a whistleblower more broadly, please do not hesitate to contact us. We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.
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