H-1B scam with ghost offices? IT firms among 30 entities to be probed by Texas

Texas Attorney General Ken Paxton on Thursday announced a sweeping investigation into alleged abuse of the H-1B visa programme, targeting nearly 30 North Texas businesses and escalating a probe his office began earlier this year. Among the entities to be investigated are IT and consulting firms.

In an official press release, Paxton's office said the investigation was focused on companies suspected of "engaging in fraudulent activity", including some flagged in widely circulated online videos. As part of the crackdown, the Attorney General has issued Civil Investigative Demands (CIDs) requiring firms to submit detailed records on employees, business operations, financials, and communications.

Paxton's announcement Thursday comes amid a cascade of dubious claims from conservative influencers alleging visa fraud and an "Indian takeover" of Texan cities like Frisco. Indian applicants account for nearly two-thirds of approved H-1B visas.

The press release alleged that some entities may have attempted to game the visa system by setting up sham businesses, complete with websites advertising non-existent services, in order to fraudulently sponsor foreign workers. In one cited example, a company reportedly listed a single-family home as its office while claiming an empty, unfinished building as a worksite. Authorities said such firms appeared to have sponsored multiple H-1B visas despite limited evidence of legitimate commercial activity.

"Any criminal who attempts to scam the H-1B visa programme and use 'ghost offices' or other fraudulent ploys should be prepared to face the full force of the law," Paxton said in the statement. He added that abuse of the system "strips jobs and opportunities away from Texans" and pledged to use "every tool available" to hold violators accountable.

CONSERVATIVE ACTIVISTS CLAIMED H-1B FRAUD ACROSS NORTH TEXAS

The announcement was amplified on social media, where Paxton posted on X (formerly Twitter) that he was "taking legal action" as part of the investigation into nearly 30 businesses. In the same post, he thanked conservative commentator Sara Gonzales for her role in "exposing H-1B fraud across the state," referencing videos in which she visited offices and questioned companies about their visa practices.

For context, Sarah Gonzales is a self-styled reporter associated with the US conservative group, Turning Point. She had previously posted a video of her visiting the Karya Siddhi Hanuman Temple in Frisco, Texas, and linking it to the alleged "Indian takeover" of the state.

The probe comes amid growing political scrutiny of the H-1B programme, particularly among conservative groups. In recent months, activists have alleged widespread misuse of the visa system in parts of North Texas, especially in cities like Frisco and Irving. These claims have at times been accompanied by inflammatory rhetoric, including assertions of an “Indian takeover,” as Indian nationals account for a significant majority of H-1B visa recipients nationwide.

However, experts caution that allegations of large-scale fraud remain largely unproven. Immigration specialists and industry groups continue to defend the programme as essential to filling critical gaps in the U.S. workforce, particularly in the science, technology, engineering, and mathematics (STEM) sectors.

IT, CONSULTING FIRMS AMONG THOSE TO BE PROBED IN TEXAS

The businesses named in connection with the investigation include several IT and consulting firms based in the Texan cities of Plano, Irving, Lewisville, and Frisco. According to a report by the US-based local news outlet, The Dallas Morning News, at least one company, Virat Solutions, has publicly denied the allegations, calling them "entirely unfounded" and stating that it is cooperating fully with investigators. The firm said it is confident the review process will clear it of any wrongdoing.

The outlet reported that Paxton’s move also aligns with broader policy signals from Texas leadership. Earlier this year, Governor Greg Abbott directed state agencies and public universities to freeze new H-1B visa applications until May 2027, citing the need to introduce additional safeguards. Abbott had also launched an enquiry earlier this year into the use of the H-1B programme by public schools and universities, questioning whether Texans are being overlooked for foreign hires.

The H-1B visa programme allows US. employers to hire foreign workers in specialised occupations and is capped at 65,000 visas annually, with an additional 20,000 reserved for applicants holding advanced degrees.

Despite its long-standing bipartisan support, the programme has increasingly become a political flashpoint as debates over immigration and domestic employment intensify.

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