NRI PULSE STAFF REPORT
Austin, TX, January 29, 2025: Texas Attorney General Ken Paxton has announced a sweeping civil investigation into alleged abuse of the federal H-1B visa program, beginning with three North Texas businesses suspected of fraudulent practices linked to visa sponsorship.
In a statement released this week, Paxton said his office has issued Civil Investigative Demands (CIDs) to the companies, seeking documents related to their employees, business operations, finances, and communications. The investigation follows reports and online videos that raised questions about whether certain firms were operating legitimate businesses while sponsoring foreign workers under the H-1B program.
According to the Attorney General’s Office, the companies under scrutiny are suspected of creating sham entities that advertised products or services that may not exist, allegedly for the purpose of fraudulently sponsoring H-1B visas. Paxton’s office said evidence reviewed so far suggests that at least one company listed a single-family home as its office address and identified an unfinished, vacant structure as a worksite on its website.
“These companies have allegedly sponsored numerous H-1B visas in recent years despite a lack of evidence that they actually provide any of the products or services advertised,” the press release stated.
“Any criminal who attempts to scam the H-1B visa program and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law,” Paxton said. “Abuse and fraud within these programs strip jobs and opportunities away from Texans.”
The Attorney General emphasized that the investigation is ongoing and that no findings of wrongdoing have yet been finalized.
Viral Video Sparked Public Attention
The announcement comes amid heightened public attention following a viral video report by conservative commentator Sara Gonzales, which circulated widely on social media earlier this month. In her video, Gonzales visited what she described as the listed business addresses of certain H-1B-sponsoring companies in Texas, questioning whether the firms were legitimate operating businesses.
Her report, shared extensively on X and other platforms, sparked a broader online debate about the H-1B visa system, subcontracting practices, and enforcement gaps. Supporters of the video argued it exposed potential misuse of the visa program, while critics—including immigration attorneys and Indian-American advocacy groups—said the video oversimplified a complex system and risked stigmatizing lawful businesses and immigrant workers.
Several legal experts have noted that subcontracting, remote work, shared office spaces, and consulting models are permitted under federal H-1B regulations, provided employers meet compliance requirements. They cautioned that the existence of a home address or coworking space does not, by itself, indicate fraud.
Scope of the Investigation
Paxton’s office said the Civil Investigative Demands seek records identifying all employees, documentation of products or services provided, financial statements, and internal communications related to company operations. The Attorney General did not name the three businesses in the press release.
The investigation is civil in nature at this stage, though Paxton indicated that criminal referrals could follow if evidence of wrongdoing is uncovered.
The H-1B visa program, administered by the federal government, allows U.S. employers to temporarily hire foreign workers in specialty occupations. While the program has long been criticized by some politicians as undercutting American workers, it is also widely used by U.S. technology, healthcare, and consulting firms to fill specialized roles.
Paxton said his office will continue to review the program and pursue enforcement actions where warranted, framing the investigation as part of a broader effort to protect Texas workers.
Cover photo credit: Sara Gonzales/YouTube/AG Paxton’s Office.
