H-1B Visa Fraud Probe: US Names Cognizant, Issues Dozens of Subpoenas

The US has launched a major investigation into alleged H-1B and PERM visa fraud, issuing dozens of subpoenas and naming Indian IT firm Cognizant among companies under scrutiny. Authorities allege fraudulent visa applications, worker exploitation, and wage abuse as part of a wider crackdown on visa misuse.

By Mahima Katal

New Delhi, July 9: The United States has launched a major investigation into alleged fraud involving the H-1B and PERM work visa programmes, with federal authorities naming Indian IT services company Cognizant among the firms under scrutiny.

The investigation is being led by the Office of the Inspector General (OIG) under the US Department of Labor as part of the Task Force to Eliminate Fraud headed by US Vice President JD Vance. Authorities say they have already issued dozens of subpoenas and are pursuing multiple leads into suspected visa fraud schemes involving employers and labour brokers.

Speaking to Fox Business on Wednesday, Labor Department Inspector General Anthony D'Esposito said whistleblowers had raised concerns involving "some of the biggest companies," including Cognizant.

"We've already started to issue dozens of subpoenas. We are going to make sure that we track down every lead. We have whistleblowers talking about some of the biggest companies like Cognizant, who have been in the chatter of issues with PERM and H-1B visas," D'Esposito said.

Allegations of Visa Abuse

According to the Department of Labor's Office of Inspector General, investigators have uncovered widespread schemes in which employers and labour brokers allegedly:

• Submitted fraudulent H-1B and PERM applications.

• Forced foreign workers into wage-kickback arrangements.

• Used the visa system to underpay workers.

• Undercut American employees by flooding the labour market with below-market wages.

The department also alleged that some cases may involve forced labour networks and human trafficking.

Officials said such practices undermine programmes that are intended to address genuine labour shortages rather than provide financial benefits to employers through abuse of immigration rules.

JD Vance Warns 'Foreign Fraudsters'

Announcing the crackdown during a visit to Milwaukee, Wisconsin, Vice President JD Vance said the administration was committed to ensuring that American jobs benefit American workers.

"American jobs ought to go to American workers and not foreign fraudsters," Vance said, adding that companies exploiting the H-1B programme to reduce wages would face increased scrutiny.

He also criticised previous administrations for allegedly failing to address fraud within government programmes, while claiming the current administration had already saved billions of dollars by tightening oversight.

Cognizant Among Companies Under Scrutiny

While no formal charges have been announced against Cognizant, the company was specifically mentioned by Inspector General D'Esposito as investigators follow information provided by whistleblowers.

The Department of Labor has not disclosed the full list of companies under investigation, and the inquiry remains at an early stage.

Why the H-1B Visa Matters

The H-1B visa programme allows US employers to hire foreign professionals in specialised occupations, particularly in science, technology, engineering and mathematics (STEM).

Indian nationals account for nearly 70 per cent of H-1B visa approvals in recent years, making India the largest beneficiary of the programme. Several Indian IT companies rely on H-1B visas to deploy skilled professionals to client locations across the United States.

The latest investigation comes amid renewed efforts by the Trump administration to tighten oversight of employment-based visa programmes and crack down on alleged misuse of the immigration system.