Notice2024-29140
Notice of Suspension and Commencement of Proposed Debarment Proceedings; Federal Lifeline Program
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Published
December 12, 2024
Issuing agencies
Federal Communications Commission
Abstract
The Enforcement Bureau (the "Bureau") gives notice of the suspension of Issa Asad from the federal Lifeline program (Lifeline Program) and all federal universal service support mechanisms. Additionally, the Bureau gives notice that debarment proceedings are commencing against Mr. Asad. Mr. Asad, or any person who has an existing contract with or intends to contract with Mr. Asad to provide or receive services in matters arising out of activities associated with or related to the Lifeline Program, may respond by filing an opposition request, supported by documentation.
Full Text
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<title>Federal Register, Volume 89 Issue 239 (Thursday, December 12, 2024)</title>
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[Federal Register Volume 89, Number 239 (Thursday, December 12, 2024)]
[Notices]
[Pages 100485-100487]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-29140]
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FEDERAL COMMUNICATIONS COMMISSION
[DA 24-1131; FR ID 264852]
Notice of Suspension and Commencement of Proposed Debarment
Proceedings; Federal Lifeline Program
AGENCY: Federal Communications Commission.
ACTION: Notice.
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SUMMARY: The Enforcement Bureau (the ``Bureau'') gives notice of the
suspension of Issa Asad from the federal Lifeline program (Lifeline
Program) and all federal universal service support mechanisms.
Additionally, the Bureau gives notice that debarment proceedings are
commencing against Mr. Asad. Mr. Asad, or any person who has an
existing contract with or intends to contract with Mr. Asad to provide
or receive services in matters arising out of activities associated
with or related to the Lifeline Program, may respond by filing an
opposition request, supported by documentation.
DATES: Opposition requests must be submitted within 30 days of
receiving the suspension letter or by January 13, 2025, whichever comes
first. The Bureau will decide on any opposition request within 90 days.
ADDRESSES: Federal Communications Commission, Enforcement Bureau,
Investigations and Hearings Division, 45 L Street, NE, Washington, DC
20554.
FOR FURTHER INFORMATION CONTACT: Christina Thomas, Federal
Communications Commission, Enforcement Bureau, Investigations and
Hearings Division, 45 L Street, NE, Washington, DC 20554. Christina
Thomas may be contacted by phone at (202) 418-1879 or email at
<a href="/cdn-cgi/l/email-protection#a5e6cdd7ccd6d1cccbc48bf1cdcac8c4d6e5c3c6c68bc2cad3"><span class="__cf_email__" data-cfemail="3c7f544e554f4855525d12685453515d4f7c5a5f5f125b534a">[email protected]</span></a>. If Ms. Thomas is unavailable, you may contact
Mr. Christopher J. Sova, Acting Chief, Investigations and Hearings
Division, by telephone at (202) 418-1868 or by email at
<a href="/cdn-cgi/l/email-protection#35765d475c46415a455d50471b665a4354755356561b525a43"><span class="__cf_email__" data-cfemail="6b28031902181f041b030e194538041d0a2b0d0808450c041d">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Bureau has suspension and debarment
authority pursuant to 47 CFR 54.8 and 47 CFR 0.111(a)(14). Suspensions
ensure that suspended parties cannot continue to benefit from the
Lifeline Program pending resolution of the debarment process. Attached
is the public redacted version of the suspension letter, DA 24-1131,
which was mailed to Mr. Asad and released on December 12, 2024. The
complete text of the notice of suspension and initiation of debarment
proceedings is available on the FCC's website at
[[Page 100486]]
<a href="https://docs.fcc.gov/public/attachments/DA-24-1131A1.pdf">https://docs.fcc.gov/public/attachments/DA-24-1131A1.pdf</a>.
Federal Communications Commission.
Christopher Sova,
Acting Chief, Investigations and Hearings Division, Enforcement Bureau.
November 8, 2024
DA 24-1131
VIA E-MAIL
Mr. Issa Asad, Chief Executive Officer, Q Link Wireless LLC, 499 E
Sheridan St., Ste 400, Dania, FL 33004, <a href="/cdn-cgi/l/email-protection#2c455f5f4d6c5d594d485e4d42584443404845424b5f024f4341"><span class="__cf_email__" data-cfemail="99f0eaeaf8d9e8ecf8fdebf8f7edf1f6f5fdf0f7feeab7faf6f4">[email protected]</span></a>
VIA E-MAIL and VIA HAND DELIVERY
John T. Nakahata, Esq., HWG LLP, 1919 M Street NW, Eighth Floor,
Washington, DC 20036, <a href="/cdn-cgi/l/email-protection#511b1f303a3039302530113926363d30267f323e3c"><span class="__cf_email__" data-cfemail="743e3a151f151c150015341c03131815035a171b19">[email protected]</span></a>
Samuel L. Feder, Esq., Jenner & Block LLP, 1099 New York Avenue
NW, Suite 900, Washington, DC 20001, <a href="/cdn-cgi/l/email-protection#025144676667704268676c6c67702c616d6f"><span class="__cf_email__" data-cfemail="80d3c6e5e4e5f2c0eae5eeeee5f2aee3efed">[email protected]</span></a>
Re: Notice of suspension and initiation of debarment proceeding File
No. EB-IHD-24-00037459
Dear Messrs. Asad, Nakahata, and Feder:
The Enforcement Bureau (Bureau) of the Federal Communications
Commission (Commission or FCC) has received notice of your
conviction for conspiring to commit offenses against the United
States, specifically, (a) wire fraud, (b) theft of government funds,
and (c) defrauding the United States, in violation of 18 U.S.C.
1343, 641, and 371, respectively, all in connection with fraudulent
claims against the federal Lifeline program (Lifeline program).\1\
The conspiracy involved submitting and causing to be submitted
``false and fraudulent claims to the FCC Lifeline program for [Q
Link] customers who were not using their cellphones according to the
FCC usage rules.'' \2\ Consequently, pursuant to 47 CFR 54.8, this
letter constitutes official notice of your suspension from the
Lifeline program and all federal universal service support
mechanisms.\3\
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\1\ Any further reference in this letter to ``your conviction''
refers to your guilty plea agreement and factual proffer in United
States v. Issa Asad, Criminal Docket No. 1:24-cr-20363-RAR, Plea
Agreement (S.D. Fla., filed Oct. 15, 2024) (Plea Agreement). See
also Lifeline and Link Up Reform and Modernization, WC Docket No.
11-42, CC Docket No. 96-45, WC Docket No. 03-109, Report and Order
and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656 (2012)
(Lifeline Reform Order).
\2\ United States v. Issa Asad, Criminal Docket No. 1:24-cr-
20363-RAR, Factual Proffer, at 3 (S.D. Fla., filed Oct. 15, 2024)
(Proffer).
\3\ 47 CFR 54.8.
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Effective immediately upon receipt of this letter, you are
prohibited from participating in or receiving any benefit associated
with the Lifeline program as well as any other program funded by
federal universal service support mechanisms.
The Bureau hereby is also commencing a proceeding to debar you
from future participation in all federal universal support
mechanisms.\4\ The Commission is required by its rules to debar Q
Link ``absent extraordinary circumstances, notwithstanding any
criminal process to which you are subject.'' \5\
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\4\ Id.; 47 CFR 0.111 (delegating to the Bureau authority to
resolve universal service suspension and debarment proceedings). In
2007, the Commission extended the debarment rules to apply to all
federal universal service support mechanisms, including Lifeline.
See Comprehensive Review of the Universal Service Fund Management,
Administration, & Oversight, Report and Order, 22 FCC Rcd 16372,
16410-12 (2007) (Program Management Order) (renumbering Section
54.521 of the universal service debarment rules as Section 54.8 and
amending subsections (a)(1), (a)(5), (c), (d), (e)(2)(i), (e)(3),
(e)(4), and (g)).
\5\ 47 CFR 54.8(b); Plea Agreement at 3.
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I. Notice of Suspension
Any person that has ``defrauded the government or engaged in
similar acts through activities associated with or related to the
[Lifeline program]'' may be prohibited from receiving the benefits
associated with that program.\6\ The Lifeline program is a federal
government program that provides support to eligible
telecommunications carriers (ETCs) that in turn offer discounts on
telephone and broadband service for eligible low-income
consumers.\7\ An ETC may receive reimbursement in connection with
the Lifeline program only if it certifies as part of its
reimbursement request that it is in compliance with the Lifeline
rules.\8\
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\6\ Program Management Order, 22 FCC Rcd at 16387, para. 32. The
Commission's debarment rules define a ``person'' as ``[a]ny
individual, group of individuals, corporation, partnership,
association, unit of government or legal entity, however
organized.'' 47 CFR 54.8(a)(6).
\7\ See Lifeline Reform Order, supra note 1, 27 FCC Rcd at 6662-
67, paras. 11-18; see also 47 CFR 54.400-54.422.
\8\ See 47 CFR 54.407(d).
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Since 2012, you served as the Chief Executive Officer of Q Link
Wireless LLC (Q Link). On October 15, 2024, and your company, Q Link
pleaded guilty to ``purposely defraud[ing] two critical federal
programs helping individuals and businesses suffering financial
hardship, unlawfully taking hundreds of millions of dollars for
[your] own use and profit, while obstructing the United States'
ability to help people who . . . needed it.'' \9\ Your misleading
practices, deceptive call activity, falsified documents and
threatening customer service scripts, directed at Q Link customers,
coerced them into accepting Lifeline services and agreeing to remain
Q Link customers.\10\ Although the Lifeline usage rules required Q
Link to disenroll and stop seeking reimbursement for customers who
had not used their cellphones in a 45-day window (90-day window for
2016), you continued to bill the Lifeline program for Q Link
customers that you knew were no longer eligible because they were
not using, and in some instances, no longer even had their
cellphones.\11\ From 2013 to 2021, you personally amassed over
$15,000,000 through your fraudulent Lifeline schemes.\12\ Between
2013 and 2019, Q Link received $618,736,494 from the Lifeline
program, 21 percent of which resulted from fraudulent Lifeline
claims.\13\
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\9\ United States Attorney's Office, Southern District of
Florida, Press Release, Nationwide Telecommunications Provider and
its CEO Plead Guilty to Massively Defrauding Federal Government
Programs Meant to Aid the Needy, October 15, 2024, <a href="https://www.justice.gov/usao-sdfl/pr/nationwide-telecommunications-provider-and-its-ceo-plead-guilty-massively-defrauding">https://www.justice.gov/usao-sdfl/pr/nationwide-telecommunications-provider-and-its-ceo-plead-guilty-massively-defrauding</a> (last visited October
22, 2024).
\10\ Proffer, supra note 2, at 2-4.
\11\ See generally Proffer, supra note 2.
\12\ Id. at 5.
\13\ Id. at 6.
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Pursuant to Section 54.8(b) of the Commission's rules,\14\ your
conviction requires the Bureau to suspend you from: (a)
participating in any activities associated with or related to the
Lifeline program, including receiving funds or discounted services
through the Lifeline program, or consulting with, assisting, or
advising applicants or service providers regarding the Lifeline
program; and (b) participating in any activities associated with or
related to all federal universal service support mechanisms.\15\
Your suspension becomes effective upon either your receipt of this
letter or publication of the suspension in the Federal Register,
whichever occurs first.\16\
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\14\ 47 CFR 54.8(a)(4); see Program Management Order, supra note
4, 22 FCC Rcd at 16387, para. 32.
\15\ 47 CFR 54.8(a)(1), (d).
\16\ Id. Sec. 54.8(e)(1).
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In accordance with the Commission's suspension and debarment
rules, you may contest this suspension or its scope by filing
arguments, with any relevant documents, within thirty (30) calendar
days of its receipt of this letter or publication of the suspension
in the Federal Register, whichever occurs first.\17\ Such requests,
however, will not ordinarily be granted.\18\ The Bureau may reverse
or limit the scope of a suspension only upon a finding of
extraordinary circumstances.\19\ The Bureau will decide any request
to reverse or modify a suspension within ninety (90) calendar days
of its receipt of such request.\20\
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\17\ Id. Sec. 54.8(e)(4).
\18\ Id.
\19\ Id. Sec. 54.8(f).
\20\ Id. Sec. Sec. 54.8(e)(5), (f).
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II. Initiation of Debarment Proceedings
In addition to your immediate suspension from all universal
service support mechanisms, including the Lifeline program, your
conviction is cause for debarment as defined in Section 54.8(c) of
the Commission's rules.\21\ Therefore, pursuant to Section 54.8(b)
of the Commission's rules, your conviction requires the Bureau to
commence debarment proceedings against you.\22\
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\21\ ``Causes for suspension and debarment are conviction of or
civil judgment for attempt or commission of criminal fraud, theft,
embezzlement, forgery, bribery, falsification or destruction of
records, making false statements, receiving stolen property, making
false claims, obstruction of justice and other fraud or criminal
offense arising out of activities associated with or related to the
schools and libraries support mechanism, the high-cost support
mechanism, the rural healthcare support mechanism, and the low-
income support mechanism.'' Id. Sec. 54.8(c). Associated activities
``include the receipt of funds or discounted services through [the
federal universal service] support mechanisms, or consulting with,
assisting, or advising applicants or service providers regarding
[the federal universal service] support mechanisms.'' Id. Sec.
54.8(a)(1).
\22\ Id. Sec. 54.8(b).
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[[Page 100487]]
As with the suspension process, you may contest the proposed
debarment or its scope by filing arguments and any relevant
documentation within thirty (30) calendar days of receipt of this
letter or its publication in the Federal Register, whichever occurs
first.\23\ The Bureau, in the absence of extraordinary
circumstances, will notify you of its decision to debar within
ninety (90) calendar days of receiving any information it may have
filed.\24\ If the Bureau decides to debar the you, its decision will
become effective upon either your receipt of a debarment notice or
publication of the decision in the Federal Register, whichever
occurs first.\25\
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\23\ Id. Sec. 54.8(e)(3).
\24\ Id. Sec. 54.8(e)(5).
\25\ Id. The Commission may reverse a debarment, or may limit
the scope or period of debarment, upon a finding of extraordinary
circumstances, following the filing of a petition by you or an
interested party or upon motion by the Commission. Id. Sec.
54.8(f).
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If and when your debarment becomes effective, you will be
prohibited from participating in activities associated with or
related to all federal universal service support mechanisms,
including the Lifeline program for at least three years from the
date of debarment.\26\ The Bureau may set a longer debarment period
or extend an existing debarment period if necessary to protect the
public interest.\27\ Pursuant to the Commission's rules, should you
choose to contest the scope or length of any such debarment, you
must file arguments and any relevant documentation within thirty
(30) calendar days of receipt of notice or publication in the
Federal Register of such debarment, whichever is earlier.\28\
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\26\ Id. Sec. 54.8(d), (g). We note that under the Plea
Agreement Q Link shall not participate, directly or indirectly, in
any program administered by the FCC as of the time of sentencing
currently scheduled for January 15, 2025. Plea Agreement, supra note
1, at para. 8.
\27\ 47 CFR 54.8(g).
\28\ Id. Sec. 54.8(e)(4).
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III. Non-Compliance
In the 2012 Lifeline Order, the Commission implemented a
compliance plan requirement for any carrier that is seeking to
become an ETC without offering service, at least in part, over its
own facilities.\29\ In its Lifeline compliance plan, a carrier must
describe and adhere to certain protections designed to protect
consumers and the Universal Service Fund.\30\ The Lifeline
compliance plan must: (1) outline the measures the carrier will take
to comply with program rules, including requirements related to
enrollment, submitting claims for reimbursement, materials related
to certifications, and program integrity safeguards, and (2) provide
a detailed description of how the carrier offers service, the
geographic areas in which it offers service, and a description of
the carrier's corporate structure and Lifeline service plan
offerings.\31\ Q Link submitted a Lifeline compliance plan to
receive forbearance from the statute's facilities requirement, and
that Lifeline compliance plan was approved on August 8, 2012.\32\
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\29\ See 47 U.S.C. Sec. 214(e)(1)(a); see also Lifeline and
Link Up Reform and Modernization; Lifeline and Link Up; Federal-
State Joint Board on Universal Service; Advancing Broadband
Availability Through Digital Literacy Training, WC Docket Nos. 11-
42, 03-109, 96-45, and 12-23, Report and Order and Further Notice of
Proposed Rulemaking, 27 FCC Rcd 6656, 6813, para. 368 (2012) (2012
Lifeline Order) (establishing the Lifeline compliance plan
requirement as a condition to receiving forbearance from the
statute's requirement that ETCs offer service at least in part over
their own facilities).
\30\ 2012 Lifeline Order, 27 FCC Rcd at 6816, para. 379.
\31\ Id.
\32\ See Wireline Competition Bureau Approves the Compliance
Plans for Birch Communications, Boomerang Wireless, IM Telecom, Q
Link Wireless, and TAG Mobile, WC Docket Nos. 09-197 and 11-42,
Public Notice, 27 FCC Rcd 9184 (WCB 2012).
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Following an investigation led by the Department of Justice, on
October 14, 2024, Q Link pleaded guilty to conspiring to defraud and
commit related offenses in connection with a scheme involving the
Lifeline program which indicates Q Link has violated and is not in
compliance with the terms of its compliance plan. The Commission is
also aware [REDACTED]
Corporate operations related to the control of an ETC are
material aspects of a Lifeline compliance plan.\33\ As such, any
change to the control of a non-facilities-based ETC without prior
approval from the Wireline Competition Bureau is a violation of the
Lifeline compliance plan requirement.\34\
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\33\ See Wireline Competition Bureau Reminds Carriers of
Eligible Telecommunications Carrier Designation and Compliance Plan
Approval Requirements for Receipt of Federal Lifeline Universal
Service Support, WC Docket Nos. 09-197 and 11-42, Public Notice, 29
FCC Rcd 9144, 9145 (WCB 2014).
\34\ See id.
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Please direct any response as follows:
If sent by messenger or hand delivery, or by commercial
overnight mail (other than U.S. Postal Service Priority Mail,
Priority Mail Express, and Priority Mail), the response must be sent
to Marlene H. Dortch, Secretary, Federal Communications Commission,
to the attention of Christopher J. Sova, Acting Chief,
Investigations and Hearings Division, Enforcement Bureau, Federal
Communications Commission, 9050 Junction Drive, Annapolis Junction,
MD 20701. Hand-delivered or messenger-delivered paper filings for
the Commission's Secretary are accepted between 8:00 a.m. and 4:00
p.m. by the FCC's mailing contractor at 9050 Junction Drive,
Annapolis Junction, MD 20701. All hand deliveries must be held
together with rubber bands or fasteners. Any envelopes and boxes
must be disposed of before entering the building.
If sent by First-Class Mail, Priority Mail Express, or Priority
Mail, the response must be sent to Christopher J. Sova, Acting
Chief, Investigations and Hearings Division, Enforcement Bureau,
Federal Communications Commission, 45 L Street NE, Washington, DC
20554.
You must also transmit an electronic copy of the response and
all Documents produced with the response via email to
<a href="/cdn-cgi/l/email-protection#f6bfbeb2a2939a9395999bb6909595d8919980"><span class="__cf_email__" data-cfemail="7e37363a2a1b121b1d11133e181d1d50191108">[email protected]</span></a>. The electronic copy shall be produced in a
format that allows the Commission to access and use it, together
with instructions and all other materials necessary to use or
interpret the data, including record layouts, data dictionaries, and
a description of the data's source. If you have any questions,
please contact Christina Thomas at <a href="/cdn-cgi/l/email-protection#ce8da6bca7bdbaa7a0afe09aa6a1a3afbd8ea8adade0a9a1b8"><span class="__cf_email__" data-cfemail="06456e746f75726f686728526e696b67754660656528616970">[email protected]</span></a> or (202)
418-1879.
Sincerely,
Christopher J. Sova
Acting Chief
Investigations and Hearings Division
Enforcement Bureau
cc: Fred Theobald, Universal Service Administrative Company (via
email)
Matthew Menchel, Esq., Kobre & Kim LLP (via email)
Michael Sherwin, Esq., Kobre & Kim LLP (via email)
Evelyn Sheehan, Esq., Kobre & Kim LLP (via email)
[FR Doc. 2024-29140 Filed 12-11-24; 8:45 am]
BILLING CODE 6712-01-P
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