US launches investigation into alleged H-1B visa fraud:US based Indian IT firm Cognizant under scrutiny

The Donald Trump administration has launched its first sweeping investigation into alleged fraud involving H-1B and PERM work visa programmes. US Labor Department Inspector General Anthony D’Esposito said investigators have already issued dozens of summons as part of the probe. While discussing the investigation, he named IT services giant Cognizant as one of the companies mentioned by whistleblowers but clarified that no formal charges have been filed and the company has not been accused of any wrongdoing. The announcement comes ahead of Vice President JD Vance’s fraud initiative event in Milwaukee, where the Trump administration is expected to highlight its broader campaign against fraud, illegal immigration and organised crime. Speaking to Fox Business on Wednesday, D’Esposito said the investigation had received information involving “some of the biggest companies” operating in the United States. We have whistleblowers talking about some of the biggest companies, like Cognizant… and we are going to work side by side with the president and vice president’s fraud task force to exhaust every lead The inspector general stressed that mentioning Cognizant did not amount to an allegation of wrongdoing. Instead, he said investigators were following up on information provided by whistleblowers as part of the ongoing inquiry. Dozens of summons issued According to D’Esposito, federal investigators have already served dozens of summons while examining alleged abuse of the H-1B visa programme and the PERM labour certification process. The H-1B visa is a non-immigrant work permit that allows US employers to hire foreign professionals in specialised occupations requiring technical expertise. The visa is generally issued for three years and can be extended for up to six years. The PERM programme is the labour certification process that employers must complete before sponsoring many foreign workers for permanent residency in the United States. Officials said the investigation will examine whether these programmes have been misused through fraudulent applications, false documentation or other violations of immigration and labour laws. Administration links visa fraud to organised crime D’Esposito argued that visa-related fraud extends beyond immigration violations and is increasingly connected to organised criminal networks. “This is another example where fraud is fuelling violent crime,” he said. He further claimed that some forms of foreign labour exploitation and human trafficking are linked to drug cartels and transnational criminal organisations. “Much of the visa and the human trafficking that we see when it comes to this foreign labour is tied to cartels, is tied to transnational gangs,” he said. According to the inspector general, the administration views the investigation as part of a broader effort to strengthen national security, improve public safety and protect American workers from labour abuse. White House confirms investigation Confirming the development, White House Press Secretary Karoline Leavitt posted on X that the Trump administration had launched its first major H-1B visa fraud investigation. The announcement is expected to be one of the key themes of Vice President JD Vance’s anti-fraud initiative in Milwaukee, where the administration plans to outline its strategy against fraud and organised crime. Technology sector remains the largest H-1B user The technology industry continues to account for the largest share of H-1B visa applications, representing an estimated 60% to 70% of new approvals in recent years. Apart from technology companies, major users of the programme include consulting firms, engineering and manufacturing companies, healthcare organisations, medical research institutions and universities. The H-1B programme has long been relied upon by employers to recruit highly skilled professionals in software development, artificial intelligence, cloud computing, engineering and other specialised fields where domestic talent shortages exist. Court blocks H-1B application fee rule The investigation comes just weeks after a federal judge struck down a Trump administration rule requiring employers to pay a $100,000 fee when applying for H-1B visas for highly skilled foreign workers. The court ruled that the executive branch had exceeded its authority by imposing what amounted to a tax without approval from Congress. Probe likely to be closely watched in India The investigation is expected to draw significant attention in India, as Indian nationals account for the overwhelming majority of H-1B visa holders in the United States. According to US government data, around 71% of approved H-1B beneficiaries in fiscal year 2024 were Indian citizens, making them by far the largest group under the programme. The H-1B visa remains one of the most important pathways for Indian engineers, software developers, researchers, healthcare professionals and other highly skilled workers seeking employment in the United States. Indian IT companies, including major outsourcing firms, along with American technology giants, have historically been among the largest users of the H-1B programme to fill specialised positions across software engineering, artificial intelligence, cloud computing and other high-demand sectors.