Shell Companies, Fake Offices: Texas Targets H 1B Visa Misuse!

Texas Attorney General Ken Paxton ordered a probe into the scam in the H-1B visa program, charging three companies in North Texas with being involved in the fraudulent activity.

Governor Greg Abbott also took the abuse of the program seriously and directed all Texas state agencies and universities to freeze new H-1B visa petitions and also review the current use of the program.

In a statement issued on January 28, Paxton issued Civil Investigative Demands (CIDs) to the three firms which allegedly used improper ways to secure H-1B visas, to temporarily hire foreign workers in occupations requiring special skills. The crux of the complaint against the businesses is they had deprived Americans their rightful share of employment by hiring foreign workers for lower wages.

The AG’s office traced how the scam was being executed by floating shell or ghost companies that only exist on paper. The companies websites advertised of products/services on their website which are never available in reality. One of the companies under the scanner mentioned a single-family home as its office address, and an empty, unfinished building as its corporate address on its website. In recent years, these companies have sponsored many H-1B visas, though they had not provided any product or service to Americans as advertised on the website.

AG Paxton said that any criminal who attempts to abuse the H-1B program through deceptive methods will face severe legal action. The legal action is an effort to enforce the law and protect Texas workers from depravity of employment.

The three businesses have been asked to submit detailed records identifying all their employees and also detailing their specific products or services provided, financial statement and official communications relating to their operations to the AG office.

The Attorney General vowed to use every tool available to uproot and take action against individuals and companies involved in the fraudulent schemes. “My office will continue to thoroughly review the H-1B program,” he added.