U.S. authorities on Wednesday opened an investigation into suspected fraud involving the H-1B and PERM work visa programmes, with a senior federal labour official confirming that Indian technology company Cognizant is among the firms being examined.
According to an official statement, the Office of the Inspector General (OIG) at the U.S. Department of Labour uncovered widespread schemes in which employers and labour brokers allegedly filed fraudulent visa applications, forced foreign workers into wage kickback arrangements, and depressed wages for American workers by increasing the supply of lower-paid labour.
On Wednesday, Labour Department Inspector General Anthony D’Esposito said investigators had begun issuing dozens of subpoenas and would follow every lead as part of the inquiry.
“We’ve already started to issue dozens of subpoenas; we are going to make sure that we track down every lead. We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of, you know, in the chatter of issues with PERM and H-1B visas,” D’Esposito told Fox Business.
The investigation was launched under the Task Force to Eliminate Fraud, an initiative led by Vice President J.D. Vance.
“These abuses undermine the integrity of Department of Labour programs designed to address genuine labour shortages — not to line the pockets of bad actors at the expense of American jobs,” the statement said.
The OIG said the investigation underscores its commitment to breaking up human trafficking and forced-labour networks that allegedly abuse the foreign guest worker visa system.
The agency added that it would continue efforts to uncover schemes that exploit vulnerable workers and undermine employment opportunities for American workers.
