The Trump administration has launched what it describes as its most aggressive investigation to date into fraud involving H-1B and PERM work visas. The U.S. Labor Department's Inspector General, Anthony D'Esposito, publicly disclosed the probe, specifically naming IT services giant Cognizant and indicating that dozens of summonses have already been issued as part of the wide-ranging effort.
Major Visa Fraud Probe Initiated
D'Esposito made the announcement ahead of a fraud initiative event in Milwaukee, led by Vice President JD Vance, where the administration planned to highlight its campaign against fraud and organized crime. The White House Press Secretary later confirmed the development, emphasizing the administration's first major H-1B visa fraud investigation.
Investigators have received substantial information from whistleblowers, pointing towards some of the largest companies operating within the H-1B and PERM visa programs. While Cognizant was singled out by name in outlining the investigation's direction, D'Esposito refrained from making direct accusations of wrongdoing or announcing formal charges against the company at this stage.
Connecting Visa Fraud to Broader Criminal Networks
Inspector General D'Esposito expanded on the scope of the investigation, framing visa-related fraud as a critical public safety issue beyond traditional immigration enforcement. He asserted that certain forms of foreign labor abuse and human trafficking are linked to transnational criminal organizations and cartels. "This is another example where fraud is fueling violent crime," D'Esposito stated, positioning the probe as part of a larger government strategy to safeguard American workers and enhance public safety.
Impact on Indian Professionals and Tech Sector
This investigation holds significant implications for Indian nationals and the technology sector. Government data from fiscal year 2024 shows that approximately 71% of approved H-1B beneficiaries were Indian, making them by far the largest group utilizing the program. Indian engineers, software developers, researchers, and healthcare professionals frequently rely on the H-1B visa as a primary pathway for U.S. employment, and Indian IT firms have historically been prominent users of the visa scheme.
The technology sector overall accounts for a substantial portion—roughly 60% to 70%—of new H-1B applications annually. Other significant users include consulting firms, engineering companies, healthcare organizations, and universities.
The announcement of this probe follows a recent legal development: a federal judge's decision a month prior to strike down an administration requirement for employers to pay a $100,000 fee when applying for H-1B visas. The court ruled that the executive branch had overstepped its authority by imposing what amounted to a tax without congressional approval.