H-1B Visa Fraud Probe Launched as US Investigates PERM Sponsorship Practices
The U.S. Department of Labor has launched a nationwide investigation into alleged H-1B and PERM labor certification fraud, issuing dozens of subpoenas as part of a broader crackdown on employment-based immigration violations.
The U.S. Department of Labor has launched a nationwide investigation into alleged H-1B Visa Fraud and abuses involving the PERM labor certification program. The probe includes dozens of subpoenas and follows whistleblower complaints naming companies, including Cognizant, in connection with alleged misuse of employment-based visa programs.
What Happened?
The Department of Labor investigation, led by the Office of Inspector General (OIG), is examining allegations that employers and labor brokers submitted fraudulent H-1B and PERM applications, engaged in wage kickback schemes, and used below-market wages to displace American workers.
Inspector General Anthony D'Esposito said the OIG has already issued dozens of subpoenas and is pursuing multiple leads as part of the Trump administration's broader immigration fraud enforcement initiative under Vice President JD Vance's Fraud Task Force.
While whistleblower complaints referred to companies "like Cognizant," the company has not been accused of wrongdoing in the announcement and did not respond to media queries before publication.
Why the Investigation Matters
Federal investigators said the alleged misconduct extends beyond paperwork violations and includes labor trafficking, forced labor, worker exploitation, and fraudulent recruitment practices.
According to U.S. Department of Labor data, Cognizant's H-1B usage has declined significantly over recent years, with Labor Condition Applications (LCAs) falling from 10,189 in 2018 to 3,436 in 2025. LCAs are mandatory filings employers submit before sponsoring foreign professionals under the H-1B program.
Officials emphasized that H-1B and PERM labor certification programs are intended to address genuine labor shortages, not facilitate fraudulent hiring practices.
Impact on H-1B Workers
The investigation does not change H1B visa status, H1B visa renewal, Green Card processing time, or eligibility for US permanent residency. However, immigration experts say employers may face increased compliance reviews as authorities intensify oversight of employment-based immigration programs.
The OIG has also launched a nationwide reporting campaign encouraging U.S. workers who believe they were displaced by H-1B or PERM fraud, as well as foreign workers who experienced coercion, wage kickbacks, benching, or fraudulent recruitment, to confidentially report their concerns.
For more updates on US Visa, and the latest U.S. immigration developments, visit Smart Immigrant and stay informed.
