US Launches First Probe Into Alleged H-1B Visa Fraud, IT Giant Named
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
The US Department of Labor has launched what it described as the first major investigation into alleged fraud involving the H-1B visa and Program Electronic Review Management (PERM) systems, while intensifying enforcement against labour trafficking and visa abuse.
In a press release issued on July 8, the department said the investigation is being conducted in coordination with federal law enforcement agencies and President Donald Trump's and Vice President J.D. Vance's Task Force to Eliminate Fraud.
According to the department, investigators have uncovered alleged schemes in which employers and labour brokers submitted fraudulent visa applications, exploited foreign workers through coercive wage kickback arrangements, and undercut American workers by hiring below-market wage labour.
The statement said the probe is focused on identifying fraud within employment-based visa programmes and addressing labour trafficking linked to visa sponsorship.
Inspector General Anthony P. D'Esposito said his office had worked alongside the administration's fraud task force to expose abuse within the immigration and employment system.
"For far too long, fraudsters believed they could game the U.S. employment-based visa system and get away with it. They were wrong," D'Esposito said.
He added that the issue extended beyond documentation fraud.
"This isn't just paperwork fraud—it's the exploitation of vulnerable workers, forced labour, the displacement of American workers, and abusive human trafficking," he said.
The official also said that exposing fraud, protecting American workers and holding offenders accountable remain the department's top priorities.
Cognizant Mentioned, But No Charges Filed
One officials reportedly referred to Cognizant while discussing information received from whistleblowers.
However, the department did not accuse Cognizant of any wrongdoing, nor did it announce any formal charges or enforcement action against the company.
Officials clarified that the reference was made in the context of whistleblower inputs being examined as part of the broader investigation.
The investigation remains ongoing.
