The Donald Trump administration has launched its first major investigation into alleged fraud involving H-1B and PERM work visas, with US Labour Department Inspector General Anthony D’Esposito revealing that dozens of summons have already been issued as part of a nationwide probe.
Speaking ahead of Vice President JD Vance’s anti-fraud initiative in Milwaukee, D’Esposito described the investigation as the administration’s most aggressive effort yet to crack down on foreign labour fraud and abuse within the US immigration system.
The H-1B visa programme allows US employers to hire foreign professionals in specialised occupations for up to six years, while the PERM programme enables employers to sponsor eligible foreign workers for permanent residency after obtaining labour certification.
Cognizant mentioned in whistleblower claims
D’Esposito said investigators have received information from whistleblowers involving “some of the biggest companies,” specifically mentioning IT services giant Cognizant while discussing concerns over H-1B visas and permanent residency sponsorships.
“We have whistleblowers talking about some of the biggest companies, like Cognizant… and we are going to work side by side with the president and vice president’s fraud task force to exhaust every lead,” he told Fox Business.
The inspector general did not accuse Cognizant of any wrongdoing, nor did he announce any charges. He cited the company only while referring to information provided by whistleblowers that investigators are examining.
Administration links visa fraud to organised crime
D’Esposito argued that visa fraud extends beyond immigration violations and is increasingly tied to organised criminal activity.
“This is another example where fraud is fuelling violent crime,” he said.
According to the inspector general, some cases involving foreign labour exploitation and human trafficking have links to cartels and transnational criminal organisations. He said the administration views the investigation as part of a broader effort to strengthen public safety while protecting American workers.
The White House also confirmed the development, with Press Secretary Karoline Leavitt posting on X that the Trump administration had launched its first major H-1B visa fraud investigation.
Technology sector likely to face scrutiny
The technology industry remains the largest user of H-1B visas, accounting for roughly 60 to 70 per cent of new applications in recent years. Consulting firms, engineering companies, healthcare providers, research institutions and universities also rely heavily on the programme.
The investigation comes weeks after a federal judge struck down the administration’s requirement that employers pay a US$100,000 fee when applying for H-1B visas, ruling that the executive branch had exceeded its authority by imposing the charge without congressional approval.
Why the probe matters for India
The investigation is expected to attract significant attention in India, whose nationals make up the vast majority of H-1B visa holders in the United States.
According to US government data, nearly 71 per cent of approved H-1B beneficiaries in fiscal year 2024 were Indian citizens. The programme remains a key route for thousands of Indian software engineers, researchers, healthcare professionals and technology specialists seeking employment in the US.
Indian IT companies, along with major American technology firms, have long been among the biggest users of H-1B visas to fill specialised roles in software development, artificial intelligence, cloud computing and engineering.