Texas has launched a sweeping investigation into alleged abuse of the H-1B visa system, with nearly 30 companies accused of operating 'ghost offices' to secure foreign workers. Attorney General Ken Paxton announced on Thursday that his office has issued Civil Investigative Demands (CIDs) to multiple North Texas-based businesses suspected of misusing the visa program.
Allegations of Fraudulent Practices
According to the Attorney General's office, the firms are believed to have engaged in fraudulent practices designed to exploit the H-1B system. Among those named are 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.
Investigators say some companies may have created so-called 'ghost offices', which exist only on paper. These offices allegedly give the appearance of active business operations, allowing firms to sponsor foreign workers under false pretenses.
'Reports indicate that several of these entities have operated so-called ghost offices as a scheme in which businesses falsely represent active operations in order to sponsor foreign workers,' the official statement said.
Details of the Investigation
As part of the probe, the companies have been asked to hand over detailed records, including employee lists, descriptions of services or products, financial documents, and internal communications related to their operations. Paxton also credited right-wing social media influencer Sarah Gonzales for highlighting the issue in her reporting, videos, and documentaries that covered the alleged fraud.
'I want to thank @SaraGonzalesTX for her efforts in exposing H-1B fraud across the state,' Paxton said.
'I will not allow the H-1B programme to be abused by bad actors seeking to use it as a loophole for allowing foreign nationals to invade Texas. My office will continue working to uncover and put an end to fraud within the H-1B programme,' he added.
Broader Context and Previous Cases
The latest action builds on a broader investigation first announced on January 28, targeting suspected misuse of the visa system across Texas. The aim is to ensure the programme operates within the law and benefits American workers as intended.
The crackdown follows a recent case in California that showed similar concerns. In April, two Indian-origin men pleaded guilty to conspiracy to commit H-1B visa fraud by filing applications for jobs that did not exist. Sampath Rajidi and Sreedhar Mada were accused of submitting fraudulent petitions between June 2020 and January 2023. Once approved, the visas were passed on to unrelated clients. Rajidi ran visa service firms, while Mada used his position as Chief Information Officer at the University of California Agriculture and Natural Resources to lend credibility to the applications. Both men knowingly submitted false information to US Citizenship and Immigration Services (USCIS), gaining an unfair advantage and reducing the number of visas available to legitimate applicants.
The filing said: 'They submitted false information knowing such information was material to US Citizenship and Immigration Services (USCIS) decisions in granting visas. As a result of their conspiracy, Rajidi and Mada gained an unfair advantage over other firms and depleted the pool of H-1B visas available to competing firms.'
