NRI PULSE STAFF REPORT
Washington, DC, July 8, 2026 — The Trump administration has launched what officials describe as its most aggressive investigation yet into alleged fraud involving the H-1B and PERM employment visa programs, with Labor Department Inspector General Anthony P. D’Esposito announcing that investigators have already issued dozens of subpoenas as part of a nationwide probe.
Speaking Wednesday on FOX Business’ Mornings with Maria, D’Esposito said the investigation will examine allegations of H-1B and PERM visa fraud, labor trafficking, and the displacement of American workers. He described it as “probably the most aggressive action against foreign labor fraud by an inspector general.”
“We’ve already started to issue dozens of subpoenas,” D’Esposito said. “We are going to make sure that we track down every lead.”
White House Press Secretary Karoline Leavitt shared the interview on X, highlighting the administration’s latest immigration enforcement initiative.
D’Esposito said investigators are pursuing information from whistleblowers and, for the first time publicly, mentioned IT services giant Cognizant while discussing the investigation.
“We have whistleblowers talking about some of the biggest companies, like Cognizant, who have been sort of… in chatter of issues with PERM and H-1B visas,” he said. “We are going to work side by side with the president and vice president’s fraud task force to exhaust every lead.”
The investigation comes as the administration expands its broader anti-fraud campaign ahead of Vice President JD Vance’s fraud initiative event in Milwaukee.
D’Esposito alleged that visa fraud is linked to organized criminal activity.
“This is another example where fraud is fueling violent crime,” he said. “Much of the visa and the human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs.”
He said investigators are examining cases across multiple industries, including manufacturing, ports, healthcare, and medical facilities.
“This is not just people working in factories,” he said. “These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way. I mean, the potential of causing death.”
The Labor Department’s Office of Inspector General has previously reported uncovering schemes involving employers and labor brokers who allegedly submitted fraudulent visa applications and exploited foreign workers through wage kickback arrangements.
The H-1B visa program allows U.S. employers to hire foreign professionals in specialty occupations requiring specialized knowledge. Initial visas are generally granted for three years and may be extended to six years. The technology industry accounts for an estimated 60% to 70% of new H-1B petitions each year, with consulting, engineering, healthcare, medical research, and higher education also relying heavily on the program.
The PERM program is the labor certification process through which many employers sponsor foreign workers for permanent residence.
According to D’Esposito, California, New York, and Illinois rank among the states with the highest numbers of H-1B applicants.
He said the administration’s objective is to ensure that Americans are not displaced by workers who obtain jobs through fraudulent means.
“We want to make sure that we root out any fraud, waste, and abuse in the visa program,” he said. “The hardworking Americans who want to get to work… are not seeing their jobs taken away by foreigners or people who are gaming the system or financially benefiting from bringing these individuals into America and putting them into jobs that, quite frankly, they are not qualified to do.”
D’Esposito also criticized the Biden administration’s handling of fraud cases, claiming investigators were sometimes unable to secure prosecutions because cases were deemed below federal charging thresholds.
“I speak to my investigators daily, who said they would present cases to prosecutors during the Biden administration, and very often would hear, ‘We’re sorry, that doesn’t meet the threshold,'” he said, citing what he described as a $3 million fraud case. He contrasted that with what he said is closer coordination between his office, the Justice Department, and U.S. attorneys under the Trump administration.
The Labor Department has not released additional details about the investigation, the companies involved, or the specific allegations being examined. No criminal charges related to the newly announced probe have been filed.
Trump admin launches its first major H-1B visa fraud investigationhttps://t.co/JGkdgzJ1yt
— Karoline Leavitt (@PressSec) July 8, 2026
Cover photo courtesy: FOX Business’ Mornings with Maria/screenshot.
