Texas Attorney General Launches Probe Into H-1B Visa Fraud Allegations
In a significant development following Texas Governor Greg Abbott's announcement of a freeze on H-1B hiring across state agencies and universities, Texas Attorney General Ken Paxton has ordered a comprehensive investigation into three North Texas businesses accused of fraudulent practices within the H-1B visa program. The investigation targets companies allegedly operating as sham entities to exploit the visa system.
Investigation Targets Alleged Sham Companies
Attorney General Paxton has demanded that the three businesses under scrutiny submit detailed documents identifying all their employees and their specific job functions. This move comes after investigative reports suggested these companies engaged in illegal activities to manipulate the H-1B visa program by establishing fictitious operations.
"Any criminal who attempts to scam the H-1B visa program and use 'ghost officers' or other fraudulent ploys should be prepared to face the full force of the law," Paxton declared in a strongly worded statement. "Abuse and fraud within these programs strip jobs and opportunities away from Texas. I will use every tool available to uproot and hold accountable any individual or company engaged in these fraudulent schemes."
Journalist's Investigation Sparks Official Action
The investigation gained momentum following Texas journalist Sara Gonzales' viral video exposé, where she visited the official addresses of these companies and discovered empty sites or private residences instead of legitimate business operations. In one instance, Gonzales arrived at what was supposed to be a company office only to find an empty, unfinished building. Another visit led her to the private property of an Indian-origin individual listed as the visa contact person in official records.
Paxton specifically referenced Gonzales' findings, stating that the companies must prove they actually provide the products or services advertised on their websites. "Evidence has suggested that one of the businesses under investigation registered a single-family home as its office address and, on its website, listed its working address as that of an empty, unfinished building," the Attorney General revealed. "These companies have allegedly sponsored numerous H-1B visas in recent years despite a lack of evidence that they actually provide any of the products or services advertised."
Companies Under Scrutiny
While Paxton has not officially released the names of the three companies under investigation, sources indicate they include two Indian-owned businesses that Gonzales highlighted in her viral investigation:
- Qubitz Tech Systems LLC - Reported to have 13 H-1B visa employees
- 3BEES Technologies - Allegedly secured approval for 27 H-1B visas between 2022 and 2025
Following the viral attention, 3Bees Technologies updated its website to clarify its business model, stating that it operates as an IT consulting company where all employees work at client sites rather than from the company's official office address.
Legal Context and Expert Perspectives
Many immigration experts have pointed out that what Gonzales flagged as an exposé might represent a misunderstanding of how the H-1B visa program operates through legitimate IT bodyshops. These entities legally hire H-1B visa holders and supply them to other companies, provided they comply with all program regulations.
The investigation raises important questions about:
- The verification processes for H-1B visa applications
- The responsibility of companies to maintain legitimate business operations
- The balance between legitimate IT staffing models and potential program abuse
This development occurs against the backdrop of increasing scrutiny of employment-based visa programs across the United States, with Texas taking particularly aggressive steps to investigate potential abuses that could affect local job markets and economic opportunities.
