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‘Loopholes are closing’: US targets fake H-1B employers, sham jobs and visa mills in fraud crackdown
The Labor Department is intensifying efforts against H-1B visa fraud, with a focus on uncovering fake employers and jobs that exploit foreign workers.
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The US Department of Labor’s inspector general has warned that the government is stepping up enforcement against alleged H-1B visa fraud, targeting fake employers, sham jobs and schemes that exploit foreign workers while potentially undercutting American workers.
Inspector General Anthony D’Esposito delivered the warning in a post on X, saying that authorities were closing what he described as an “H-1B back door” as part of a broader crackdown on fraud in employment-based visa programs.
“A secure border means locking every door, including the H-1B back door. Fake employers. Sham jobs. Visa mills. Worker exploitation,” D’Esposito wrote. He added that “the loopholes are closing” and warned that raids and arrests would follow.
DOL intensifies H-1B fraud investigation
The remarks follow a broader investigation launched by the Labor Department’s Office of Inspector General into alleged fraud and human trafficking involving the H-1B and PERM employment-based immigration systems.
Also read: Trump signs H-1B order targeting employers that lay off Americans, tighten scrutiny of foreign hires
D’Esposito has also tied the enforcement campaign to President Donald Trump and Vice President JD Vance’s Task Force to Eliminate Fraud. The inspector general joined the task force in March as part of a government-wide effort targeting fraud, waste and abuse.
Field checks already underway
The enforcement push has moved beyond policy statements. In August, D’Esposito visited Dallas as part of the nationwide H-1B fraud investigation and conducted field checks at locations connected to companies that had received hundreds of approved H-1B petitions.
According to the DOL OIG, one multi-story building housed several businesses linked to more than 500 approved H-1B applications. Investigators found several offices with locked doors, lights off and little evidence of active business operations.
The agency has not said that every company or petition connected to such locations was fraudulent. Its investigation remains focused on identifying cases where the visa system may have been misused.
Also read: Trump extends $100K H-1B fee by 12 months; India, with 71% share, most affected
What the crackdown could mean for H-1B employers
The Labor Department maintains separate lists of employers found to have committed willful H-1B violations and employers that have been disqualified from participating in the program. As of September 2026, the department's records include employers with recent violations and several companies subject to H-1B debarment periods.
The OIG has said its investigations can involve criminal cases where evidence points to fraud, labor trafficking or other violations. D’Esposito said in a September 18 statement that investigators would build cases and work with prosecutors when evidence indicates criminal conduct.
