Trump admin opens first major H-1B visa fraud investigation
The U.S. Department of Labor's Office of Inspector General opened a nationwide H-1B visa fraud investigation on July 8, 2026, issuing dozens of subpoenas into alleged abuses of H-1B and PERM work visas. Inspector General Anthony D'Esposito told Fox Business that whistleblowers flagged Cognizant among major firms under scrutiny, though no charges have been announced.
Key Takeaways
- The Labor Department inspector general launched a major H-1B and PERM visa fraud probe on July 8, 2026.
- Dozens of subpoenas have already been issued to employers and labor brokers.
- Whistleblowers mentioned Cognizant, but no formal charges or allegations have been filed.
- The investigation is tied to Vice President J.D. Vance's Task Force to Eliminate Fraud.
- Alleged abuses include wage-kickback schemes, labor trafficking, and fraudulent visa applications.
What did the Trump administration announce about H-1B visa fraud?
On July 8, 2026, Labor Department Inspector General Anthony D'Esposito announced what the administration described as its first major investigation into alleged fraud within the H-1B and PERM visa programs. Speaking exclusively to Fox Business, D'Esposito said investigators had already begun issuing dozens of subpoenas as part of a nationwide inquiry.
The Office of the Inspector General under the Department of Labor said it had uncovered widespread schemes in which employers and labor brokers submitted fraudulent applications, exploited foreign workers through coercive wage-kickback arrangements, and undercut American workers by flooding the market with below-wage labor. The probe is being carried out under Vice President J.D. Vance's Task Force to Eliminate Fraud.
D'Esposito framed the effort as part of a broader anti-fraud campaign, speaking ahead of Vance's nationwide fraud initiative event in Milwaukee. An official statement said these abuses undermine programs designed to address genuine labor shortages, not to enrich bad actors at the expense of American jobs.
Why did a US official mention Cognizant?
D'Esposito told Fox Business that whistleblowers had raised concerns involving "some of the biggest companies," specifically naming Cognizant, the Indian IT services firm, while discussing alleged issues with H-1B visas and permanent residency sponsorships under the PERM program.
He described Cognizant as being part of the "chatter" around potential abuses but did not accuse the company of wrongdoing or announce any charges. Reporting from NDTV and Telegraph India emphasized that no formal allegations have been filed against Cognizant at this stage.
Cognizant has not been found guilty of any violation, and the investigation appears to remain in its early stages as investigators continue to track leads from whistleblowers.
What types of abuse is the probe targeting?
According to an official statement from the Labor Department's inspector general, the investigation focuses on fraud schemes that undermine programs meant to address genuine labor shortages. Investigators are examining whether employers and recruitment firms manipulated visa rules to benefit at the expense of American workers.
D'Esposito linked the inquiry to broader concerns about labor trafficking and human exploitation tied to foreign guest worker programs. He told Fox Business that visa-related trafficking is connected to transnational criminal networks, and that dismantling forced-labor networks exploiting the guest worker system is a core goal of the probe.
The inspector general pledged to track down every lead and work alongside the president and vice president's fraud task force to exhaust all whistleblower tips.
What happens next in the investigation?
The probe remains in an early phase. Investigators are issuing subpoenas, gathering whistleblower testimony, and following every lead. No criminal or civil charges have been announced against Cognizant or any other company named in public comments so far.
For context on how large-scale federal fraud probes unfold, see our coverage in True Crime & Unsolved Mysteries. Official updates will likely come through the Labor Department inspector general's investigation and related court filings as the case develops.