Indian IT giant Cognizant has been thrust into the spotlight after the U.S. Department of Labor launched a sweeping investigation into alleged fraud. H-1B and PERM work visa program, a senior federal official listed the company as one of those under review.
The investigation announced Wednesday was conducted by the U.S. Department of Labor’s Office of Inspector General (OIG) as part of the Vice President’s Fraud Elimination Task Force JD Vance.
Why Cognizant is getting attention
Department of Labor Inspector General Anthony D’Esposito singled out Cognizant when discussing the ongoing investigation.
“We’ve started issuing dozens of subpoenas; we’re going to make sure we pursue every lead. We have whistleblowers talking about some of the largest companies like Cognizant, you know, involved in discussions about PERM and H-1B visa issues,” D’Esposito told Fox Business.
His remarks attracted attention because cognition It is one of the largest users of US work visas among Indian technology companies and employs thousands of professionals in the United States.
At this stage, U.S. authorities have not charged Kochi with any wrongdoing. However, the company’s involvement in discussions surrounding whistleblower complaints and visa-related investigations has exposed it to heightened scrutiny.
What are the charges?
Investigators uncovered what they said was a widespread scheme involving employers and labor brokers, according to the Labor Department’s inspectorate.
The agency alleges that some employers submitted fraudulent visa applications, exploited foreign workers through mandatory wage kickback arrangements and depressed wages by bringing in workers at prices below prevailing market rates, an official statement said, news agency PTI reported.
“These abuses undermine the integrity of the Department of Labor’s programs designed to address real labor shortages, not to enrich the pockets of bad actors at the expense of American jobs,” the department said in a statement.
The OIG also said the investigation aims to disrupt human trafficking and forced labor networks that may exploit the foreign worker visa program.
“The OIG is determined to root out any scheme that preys on vulnerable workers and takes away jobs from American workers,” the statement added.
J.D. Vance links investigation to protecting U.S. jobs
Vance sees the investigation as part of a broader effort to prevent abuse of the H-1B visa system and ensure jobs are not unfairly diverted away from American workers.
“We have a program called the H-1B visa program. We’re fighting for taxpayer dollars, but we’re also making sure fraudsters don’t take advantage of these visa programs. This visa program was set up to make sure that if you’re an outstanding technician, an outstanding scientist, or an outstanding doctor, you can come to the United States and get the opportunity in this visa program,” he said.
Vance highlighted the administration’s enforcement efforts, adding: “Today, the federal Department of Labor has begun issuing dozens of subpoenas and investigations into foreign fraudsters seeking to exploit the H-1B visa program…American jobs should belong to American workers, not foreign fraudsters.”
(with PTI input)
