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$20 billion H-1B fraud? Trump administration alleges there was foreign labor fraud, warns ‘handcuffs are coming’
The US Department of Labor’s Inspector General revealed $20 billion in suspected fraud related to H-1B visas and foreign labor programs.
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The US Department of Labor’s Inspector General Anthony D’Esposito has claimed that investigators uncovered $20 billion in suspected fraud involving H-1B visas and foreign-labor programs, signaling a major escalation in the Trump administration’s scrutiny of the US employment-based immigration system.
D’Esposito made the claim in a post on X, saying he and Acting Labor Secretary Keith Sonderling had uncovered the suspected fraud. He said the effort was being carried out alongside Vice President JD Vance’s White House Task Force to Eliminate Fraud.
"$20 BILLION FRAUD
@Sonderling47 and I uncovered $20B in suspected H-1B and foreign labor fraud.
@POTUS made the mission clear: alongside
@VP’s @WHFraudTF- ROOT OUT FRAUD.
We’re taking action. Cases are being built. Handcuffs are coming," he said in the post.
The inspector general did not provide a detailed breakdown of the $20 billion figure, including the companies, petitions or alleged schemes that make up the amount.
What is the US investigating?
The Labor Department’s Office of Inspector General has been investigating alleged fraud and abuse involving the H-1B and PERM employment-based immigration programs.
The OIG has said its investigation is examining allegations involving fraudulent visa applications, improper wage arrangements, kickbacks and other practices that could undermine protections for US workers. Investigators are also examining the activities of employers and labor brokers involved in the foreign-worker sponsorship system.
The investigation has included physical checks of workplaces. In August, D’Esposito said investigators visited locations in Dallas connected to companies that had received hundreds of approved H-1B petitions. The OIG said one building was associated with more than 500 approved petitions and that several offices appeared inactive during investigators’ visits.
The agency has stressed that the investigation is continuing.
Cognizant, Cloudera face PERM scrutiny
The crackdown has also expanded to the PERM labor-certification system, an important step for employers seeking permanent residence for foreign workers.
The Labor Department has suspended PERM filings by Cognizant and Cloudera amid investigations into alleged visa-related fraud.
For employers, the investigation could bring closer scrutiny of job offers, wages, workplace locations, recruitment records and immigration filings.
For H-1B workers, the latest actions underline the importance of maintaining accurate documentation and ensuring that employment arrangements match information submitted to US authorities.
