The US Department of Labor launched its first major investigation on Wednesday into alleged H-1B and PERM work visa fraud, labor trafficking, and the displacement of domestic workers by major corporations.
The probe is coordinated under the Task Force to Eliminate Fraud led by Vice President JD Vance.
It focuses on widespread schemes involving employers and labor brokers who allegedly submitted fraudulent applications.
Investigators have already targeted IT firm Cognizant among other major companies under scrutiny following whistleblower reports.
Enforcement Action Details
Labor Department Inspector General Anthony D'Esposito revealed the enforcement action during an exclusive broadcast interview with Fox Business.
"We've already started to issue dozens of subpoenas; we are going to make sure that we track down every lead.
We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of, you know, in the chatter of issues with PERM and H-1B visas," said D'Esposito.
D'Esposito noted that the ongoing anti-fraud campaign aims to prevent foreign nationals from taking jobs from qualified American citizens.
"This is another example where fraud is fueling violent crime.
Much of the visa and the human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again," he said.
He further explained that the scope of visa exploitation extends far beyond traditional industrial and manufacturing sectors.
"This is not just people working in factories or actual labor.
These are people working in medical facilities and doctors' offices that are actually putting people in harm's way," D'Esposito added.
An official statement from the Office of the Inspector General emphasized that these illegal networks undermine critical federal employment systems.
"These abuses undermine the integrity of Department of Labour programs designed to address genuine labour shortages — not to line the pockets of bad actors at the expense of American jobs," the statement said.
The tech sector remains the largest user of H-1B visas, representing 60% to 70% of new applications, with California, New York, and Illinois leading in applicant numbers.
This federal action follows a recent judicial ruling that struck down a proposed $100,000 employer visa fee.
