H-1B visa fraud: Reports of ‘ghost offices’ hiring workers in Texas, 30 companies under investigation

Texas has launched a sweeping investigation into alleged abuses of the H-1B visa system, with nearly 30 companies accused of operating “ghost offices” to ensure the safety of foreign workers.Attorney General Ken Paxton announced Thursday that his office has issued civil investigative requests to multiple North Texas companies suspected of abusing the visa program.According to the Attorney General’s Office, the companies are believed to have engaged in fraudulent conduct designed to exploit the H-1B system. These include Tekpro IT LLC, Fame PBX LLC, 1st Ranking Technologies LLC, Qubitz Tech Systems LLC, Blooming Clouds LLC, Virat Solutions, Inc., Oak Technologies Inc, Techpath Inc and Techquency LLC.“As part of an ongoing investigation into alleged fraud and abuse of the H-1B visa program, Attorney General Ken Paxton has issued Civil Investigative Demands (‘CIDs’) to nearly 30 North Texas businesses,” an official statement said.Investigators say some companies may have created so-called “ghost offices” that exist only on paper. The offices allegedly gave the impression of active business operations, allowing companies to sponsor foreign workers under false pretenses.“Reports indicate that some of these entities operate so-called ‘ghost offices’ as a scheme where businesses falsely represent active operations to sponsor foreign workers,” the statement said.The companies were asked to hand over detailed records as part of the investigation. These include employee lists, service or product descriptions, financial documents, and internal communications related to its operations.Paxton also praised right-wing social media influencer Sarah Gonzalez for highlighting the issue in reports, videos and documentaries that reported incidents of alleged fraud. “I want to thank @SaraGonzalesTX for her efforts in exposing H-1B fraud across the state,” he said.“I will not allow the H-1B program to be abused by bad actors seeking to exploit it as a loophole that allows aliens to invade Texas. My office will continue working to expose and stamp out fraud in the H-1B program,” he said.The latest action builds on a broader investigation first announced on January 28 into alleged abuses of the visa system across Texas. The goal is to ensure that the program operates within the law and benefits American workers as intended.The crackdown comes after a recent case in California raised similar concerns. In April, two Indian-origin men pleaded guilty to conspiring to commit H-1B visa fraud by submitting nonexistent job applications.Sampath Rajidi and Sreedhar Mada are accused of submitting fraudulent applications between June 2020 and January 2023. Once the visa is approved, it is transferred to an unrelated client. Rajidi ran a visa services company, while Mada used his position as chief information officer at the University of California Department of Agriculture and Natural Resources to lend credibility to the application. The two knowingly submitted false information to U.S. Citizenship and Immigration Services (USCIS) to gain an unfair advantage and reduce the number of visas available to legitimate applicants.“They submitted false information because they knew it would be critical to U.S. Citizenship and Immigration Services (USCIS) decisions to issue visas,” the filler states. “As a result of their conspiracy, Rajidi and Mada obtained an unfair advantage over other companies and depleted the pool of H-1B visas available to competing companies.”