Austin, Texas, January 29 (ANI): The Texas Office of the Attorney General has launched a sweeping investigation into alleged abuse of the H-1B visa program, placing three North Texas businesses at the center of a broader inquiry into potential fraud linked to foreign worker sponsorships.
The investigation, announced in a statement issued on January 28, marks an escalation in the state’s scrutiny of companies suspected of exploiting the federal visa system.
According to the statement, Attorney General Ken Paxton has issued Civil Investigative Demands to the three businesses. These legal demands require the companies to produce extensive documentation related to their operations, finances, and employment practices. State officials believe the firms may have engaged in deceptive schemes designed to improperly obtain H-1B visas, which allow US employers to temporarily hire foreign workers in specialized occupations.
The allegations outlined by the Attorney General’s office describe a pattern in which certain businesses allegedly created sham or “ghost” companies that existed largely on paper. These entities reportedly maintained websites advertising products or services that, in practice, did not exist or were never actually offered to consumers.
In one cited example, a business allegedly listed a single-family residence, described as empty and unfinished, as its corporate office address, despite claiming to operate as a functioning commercial enterprise.
Investigators believe such arrangements were used to create the appearance of legitimate business activity in order to sponsor foreign workers for H-1B visas. Despite a lack of clear evidence that these companies provided real services or generated genuine revenue, they allegedly sponsored numerous visa holders over recent years.
Paxton framed the investigation as part of a broader effort to protect Texas workers and enforce the law. “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,” he said.
He added that abuse and fraud within the program strip jobs and opportunities away from Texans, and pledged to use every tool available to hold accountable any individual or company engaged in fraudulent schemes. Paxton also said his office would continue to thoroughly review the H-1B visa program while prioritizing the interests of Americans.
As part of the investigation, the Attorney General’s office has requested detailed records identifying all employees associated with the companies under review. The demands also seek documentation describing the specific products or services allegedly offered, along with financial statements and internal and external communications related to company operations.
While the investigation remains in its early stages, the announcement underscores growing concerns among state officials about the misuse of visa programs and their potential impact on local labor markets. No criminal charges have been filed at this time, and the companies involved have not been publicly named. The Attorney General’s office said the inquiry is ongoing and that further action may follow depending on what the requested documents reveal.
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