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H-1B fraud under scrutiny: What’s happening in Dallas, why more than 500 petitions are in focus - all you need to know
The US Department of Labor’s inspector general has taken the H-1B visa fraud crackdown directly into the field, conducting checks at Dallas-area locations.
The US Department of Labor’s inspector general has taken the H-1B visa fraud crackdown directly into the field, conducting checks at Dallas-area locations connected to companies that have received hundreds of approved H-1B petitions.
Inspector General Anthony P. D’Esposito traveled to Dallas this week as part of a nationwide investigation into suspected fraud involving the foreign-worker visa program, according to a US Department of Labor Office of Inspector General (DOL OIG) announcement issued August 13.
Investigators conducted door-to-door inquiries at a multi-story building where numerous businesses were linked to more than 500 approved H-1B applications. According to the OIG, several offices appeared inactive, with locked doors, lights off and little evidence that businesses were operating.
The agency did not say that the companies or all of the H-1B petitions were fraudulent. Instead, the field checks form part of an ongoing investigation into potential abuse of the foreign labor system.
H-1B fraud investigation taken to the field
The Dallas operation marks a more visible phase of the Labor Department inspector general’s broader effort to identify possible H-1B fraud and other abuses involving foreign-worker programs.
D’Esposito said the investigation is focused not only on paperwork but also on protecting the integrity of the immigration system and US workers.
“We are sending a clear message: fraud in our foreign labor programs will not be tolerated,” D’Esposito said in the agency’s statement.
He said investigators and auditors were responding to hotline complaints and following leads as part of the nationwide effort.
The OIG has not publicly identified the companies associated with the Dallas locations in its August 13 announcement, nor did it disclose how many H-1B workers could ultimately be affected by the investigation.
What the H-1B fraud checks mean
The H-1B program allows US employers to hire foreign workers in specialty occupations. Employers must meet federal requirements governing wages and working conditions and provide information about the employment being offered.
The agency's focus is on alleged fraud and abuse within the foreign labor system.
Nationwide crackdown follows July initiative
The Dallas operation follows a broader anti-fraud initiative announced by the DOL OIG in July. The agency said the effort is being pursued in coordination with President Donald Trump and Vice President JD Vance’s White House Task Force to Eliminate Fraud.
The initiative calls for greater interagency cooperation to identify vulnerabilities, pursue suspected offenders and protect American workers from fraudulent practices.
The latest announcement signals that the investigation is moving beyond administrative reviews and into on-the-ground checks at business locations.
The DOL OIG encouraged people who suspect wrongdoing involving Labor Department programs or operations to report it through its hotline.
For H-1B employers and foreign workers, the Dallas operation is another indication that federal scrutiny of the visa system is becoming more aggressive, particularly where investigators see potential signs that businesses or petitions may not match reality on the ground.
