Texas Attorney General Ken Paxton has launched an investigation into alleged H-1B visa fraud involving three North Texas businesses suspected of operating “ghost offices” to exploit the visa program.
Texas Attorney General Ken Paxton announced on Wednesday a comprehensive investigation into potential abuses of the H-1B visa program, focusing on three North Texas businesses suspected of engaging in fraudulent activities. This initiative follows a recent directive from Governor Greg Abbott to halt new H-1B petitions across state agencies and public universities, citing concerns over misuse of the program and the need to prioritize American workers.
In a statement posted on X, Paxton emphasized the seriousness of the allegations, stating, “Any criminal who attempts to scam the H-1B visa program and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law.” He further asserted that “abuse and fraud within these programs strip jobs and opportunities away from Texans,” vowing to utilize every available resource to root out and hold accountable those involved in such schemes.
The investigation targets businesses that allegedly set up sham companies, complete with websites advertising non-existent products or services, to fraudulently sponsor H-1B visas. According to Paxton, evidence suggests that one of the companies registered a single-family home as its office address while listing an empty, unfinished building as its worksite on its website.
As part of the investigation, Paxton’s office has issued Civil Investigative Demands (CIDs) to the three North Texas companies. These demands require the businesses to provide documentation identifying all employees, records detailing the specific products or services offered, financial statements, and communications related to their operations. The Attorney General’s office is scrutinizing the companies for allegedly sponsoring numerous H-1B visas in recent years without sufficient evidence that they deliver the advertised products or services.
Governor Abbott’s earlier directive to freeze new H-1B petitions also mandates that state agencies and public universities submit a report to the Texas Workforce Commission by March 27. This report must detail the number of H-1B visa holders currently sponsored, the number of applications and renewals filed, the countries of origin for the visa holders, their job roles, visa expiration dates, and evidence that agencies attempted to fill positions held by visa holders with Texas candidates first.
The freeze on new and renewal applications will remain in effect until the conclusion of the 90th state legislative session, which is set to begin in January 2027. Abbott stated, “State government must lead by example and ensure that employment opportunities — particularly those funded with taxpayer dollars — are filled by Texans first.”
This investigation into alleged H-1B visa fraud highlights ongoing concerns regarding the integrity of the visa program and its impact on local job markets. As the situation develops, further scrutiny of the H-1B program and its administration in Texas is expected.
For more information, refer to the official statements from the Texas Attorney General’s office and related media releases.
According to The American Bazaar.