Texas AG Launches Sweeping Probe Into H-1B Visa "Ghost Office" Fraud

The investigation, revealed in a statement issued January 28, signals 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 (CIDs) 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 are intended to 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 exist 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 that such setups 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.

Attorney General 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," Paxton said. He added, "Abuse and fraud within these programs strip jobs and opportunities away from Texans. I will use every tool available to uproot and hold accountable any individual or company engaged in these fraudulent schemes. My office will continue to thoroughly review the H-1B visa program and always work to put the interests of Americans first."

As part of the investigative process, 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 is still 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 in the announcement. The Attorney General's office emphasized that the inquiry remains ongoing, and further action may follow depending on what the requested documents reveal.

- ANI