'Count Your Days': US Labor Department Ramps Up H-1B Fraud Probe Amid Increased Scrutiny

(MENAFN- Live Mint) The US administration's scrutiny of the H-1B visa programme is widening, with the Department of Labor's Office of Inspector General (DOL OIG) saying a growing number of whistleblower complaints and public tips are helping investigators identify suspected fraud and abuse.

In a post on X on Wednesday, the watchdog issued a blunt warning to those allegedly involved in fraudulent immigration schemes:“Count your days.” The agency said information from whistleblowers, members of the public and investigators was feeding into its work with the White House Task Force to Eliminate Fraud.

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Inspector General Anthony D'Esposito said the agency has received a surge of information from people who have worked for or interacted with businesses described by investigators as“visa mills”. The tips followed interviews and social media posts highlighting the ongoing investigation.

The broader probe covers alleged fraud involving H-1B and PERM programmes, including claims of fraudulent applications, wage-related kickbacks, labour brokers and potential human trafficking. The investigation is not confined to the technology industry, with D'Esposito saying healthcare and other sectors are also being examined.

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The OIG investigates suspected violations involving employers, immigration lawyers and labour brokers across several US foreign-worker programmes. These include H-1B, H-2A, H-2B and PERM.

Field investigations raise questions

The watchdog has also conducted on-ground checks as part of the investigation. During an August visit to Dallas, investigators examined addresses associated with companies that had secured hundreds of approved H-1B petitions.

At one multi-office property linked to more than 500 approved petitions, investigators said several offices appeared inactive, with locked doors and lights switched off. D'Esposito cited the case while describing the investigation as an effort to uncover layers of alleged fraud.

The findings remain part of an ongoing investigation, rather than a final determination of wrongdoing by the entities involved.

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The crackdown has also involved scrutiny of individual companies. D'Esposito referred to actions involving Cognizant and Cloudera, saying H-1B applications had been suspended.

Separately, the Labor Department in May suspended processing of all PERM applications filed by or on behalf of Cloudera for 180 days. The department said the action followed evidence obtained by the US Justice Department alleging that Cloudera had created a recruitment process that prevented qualified US workers from applying for certain technology positions. The DOJ subsequently filed a lawsuit over the allegations.

The developments add another layer of uncertainty for companies that rely on foreign-worker programmes, as US agencies intensify checks on recruitment practices and the integrity of visa applications.

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