The Trump administration has begun its first large-scale inquiry into alleged fraud with H-1B and PERM work visas. A senior federal official identified IT firm Cognizant while describing the effort.
US Labor Department Inspector General Anthony D’Esposito stated that investigators have already sent dozens of summonses. He described the move as the administration’s strongest action so far against foreign labor fraud.
The H-1B visa permits US employers to hire foreign professionals for specialized roles, usually for three years and extendable to six. The PERM process requires employers to obtain labor certification before sponsoring foreign workers for permanent residency.
The announcement preceded Vice President JD Vance’s event on fraud in Milwaukee. D’Esposito noted tips about major companies, including Cognizant, concerning permanent residency sponsorships and H-1B visas. He said investigators would cooperate with the president’s and vice president’s fraud task force.
D’Esposito did not charge Cognizant with any violation. He linked some visa fraud to organized crime and cartels, saying it affects public safety and American workers.
The White House press secretary confirmed the inquiry on social media. Technology companies use most H-1B visas, followed by consulting, engineering, healthcare and academic institutions.
A federal judge recently blocked a proposed $100,000 application fee for H-1B visas. Indian nationals receive about 71 percent of approved H-1B visas, and many Indian IT firms rely on the program for specialized positions.
