A Texas company owned by a Chinese national has been hit with a lawsuit over allegations that it operated fictitious childcare businesses to fraudulently secure H-1B visas. Texas Attorney General Ken Paxton filed the legal action against Golden Qi Holdings LLC, accusing the firm of advertising non-existent childcare services to sponsor foreign workers under the H-1B visa program. Yuan Yao, a Chinese national, is also named as a defendant in the case.
Allegations of a Visa Scheme
According to the lawsuit, Yao owns and manages several Texas companies, including Golden Qi Holdings. These entities allegedly ran websites that presented themselves as legitimate childcare providers, but the services advertised never actually existed. Examples cited in the case include Allen Infant Care Center and DFW ABA Center, which were supposedly operating as childcare and autism therapy facilities.
A visit to one listed site revealed no evidence of an active daycare. Journalist Sara Gonzales of Blaze Media reported finding an empty building and an overgrown playground at the location associated with Allen Infant Care Center.
Workers Sponsored for Unrelated Roles
Gonzales also alleged that the businesses had filed more than 50 labor condition applications and sponsored at least 37 H-1B visa workers for roles such as market research analyst and supply chain analyst, which appear unrelated to childcare work. During her confrontation with Yao, he declined to answer detailed questions and asked Gonzales to speak with his lawyer. “I only can tell you, everything is legal,” he said.
Whistleblower Claims and PPP Loan Fraud
A whistleblower cited in the reporting claimed the operation was part of a visa scheme. The individual alleged, “He sells visas,” and suggested foreign workers paid up to $20,000 for sponsorship. The whistleblower also claimed Yao’s father had ties to the Chinese government and provided financial support.
The lawsuit further alleges that the businesses received more than $100,000 in federal Paycheck Protection Program (PPP) loans, which were later forgiven, but that the funds were not used for childcare operations. Prosecutors also say several listed business addresses were vacant or duplicated across multiple entities.
Attorney General's Warning
Attorney General Paxton said: “Let this be a warning to anyone considering trying to scam the H-1B visa program. I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law.”
The case comes as Paxton’s office continues to investigate suspected H-1B visa fraud in North Texas, where authorities say some companies may be running “ghost” operations while sponsoring foreign workers.
