Indian-born CEOs facing charges of fraud in the annual visa lotteries for H-1B foreign contract workers are reportedly closing their firms and returning to India to escape prosecution, according to immigration lawyer Rahul Reddy. During an online Q&A session, Reddy acknowledged the ongoing federal investigations into H-1B fraud and the impact on Indian graduates seeking employment in the United States. While some Indian graduates in the US are complicit in the fraud, others oppose it as it hinders their legal chances of converting their work permits into H-1B visas and obtaining US citizenship. The lottery fraud is a significant concern for graduates on STEM OPT work permits who are in their final attempts to secure H-1B visas.
Reddy stated that many Indian-owned subcontractors and visa workers are under criminal investigation, leading some CEOs to flee back to India or close their companies. The fraud is primarily conducted by Indian-born CEOs who operate white-collar subcontracting firms and utilize the H-1B program to replace American graduates with lower-wage migrant workers. The fraud also involves collusion between Indian managers and visa workers to sell American jobs in exchange for kickbacks and the opportunity to obtain green cards and citizenship. This fraudulent activity undermines American professionals and contributes to the displacement of US graduates in the technology sector.
The H-1B visa program has been recognized as susceptible to fraud, and the Department of Homeland Security (DHS) under President Joe Biden has acknowledged the lack of follow-up on fake filings. However, the government’s fraud investigation is unlikely to address the large-scale extraction of migrants from poor countries for the benefit of Fortune 500 companies. While occasional settlements with CEOs involved in fraud are announced, the federal government’s focus appears to be on asserting control over the visa process rather than addressing the broader systemic issues. The lack of government action may be influenced by diplomatic considerations, including the desire to maintain a positive relationship with Indian Prime Minister Narendra Modi, who supports the H-1B program.
Visa worker fraud extends beyond the H-1B program and encompasses various visa categories, including J-1, L-1, OPT, and H4EAD. The fraud is facilitated by lax checks and minimal oversight, allowing the importation of a large resident white-collar workforce, which benefits corporations by lowering labor costs. The primary form of fraud is the Labor Condition Application (LCA) fraud, where employers falsely claim they need an H-1B visa to import workers with specific skills that are allegedly unavailable in the American workforce. This enables the importation of low-wage, poorly trained Indian graduates who underbid American graduates for contracts. The fraudulent activity also involves the selling of jobs to Indian graduates, which is facilitated by kickbacks and hidden transactions.
The extent of the visa worker fraud and the black market for US white-collar jobs is often unnoticed by Americans and the federal government. The transactions are conducted in foreign languages, hindering investigation and prosecution efforts. Journalists and media outlets have generally failed to cover this issue, further obscuring public awareness. The government’s reluctance to investigate and address the fraud may be influenced by diplomatic considerations, as well as the preferences of US executives who prefer employing subordinate foreign workers instead of American professionals. Overall, visa worker fraud, including lottery fraud, is a significant problem that disadvantages American workers and undermines the integrity of the US immigration system.
