Trump admin launches first major H-1B fraud probe: Whistleblowers come forward; Cognizant named

The Trump administration has launched what it describes as its most aggressive investigation yet into fraud involving H-1B and PERM work visas, with the US Labour Department's Inspector General naming IT services major Cognizant, discussing the scale of the probe, and indicating that dozens of summonses have already been issued.

Inspector General Anthony D'Esposito made the disclosure ahead of Vice President JD Vance's fraud initiative event in Milwaukee, where the administration was expected to showcase its campaign against fraud and organised crime. The White House Press Secretary subsequently confirmed the development on X, writing: "Trump administration launches its first major H-1B visa fraud investigation."

Cognizant named amid whistleblower disclosures

D'Esposito said investigators had received information from whistleblowers pointing toward some of the largest companies operating in the H-1B and PERM space. He singled out Cognizant by name while outlining the investigation's direction, though he stopped short of accusing the company of any wrongdoing or announcing formal charges.

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"We have whistleblowers talking about some of the biggest companies, like Cognizant... and we are going to work side by side with the president and vice president's fraud task force to exhaust every lead," he told FOX Business.

The H-1B is a non-immigrant work permit allowing US employers to hire foreign professionals in specialised roles, typically granted for three years and extendable to six. The PERM programme is the labour certification process employers must complete before sponsoring foreign workers for permanent residency.

Visa fraud framed as a public safety issue

D'Esposito went beyond immigration enforcement in framing the investigation, linking visa-related fraud to broader criminal networks. "This is another example where fraud is fuelling violent crime," he said, claiming that some forms of foreign labour abuse and human trafficking are connected to cartels and transnational criminal organisations.

"Much of the visa and the human trafficking that we see when it comes to this foreign labour is tied to cartels, is tied to transnational gangs," he said, positioning the investigation as part of the administration's wider effort to protect American workers and improve public safety.

Why this matters for Indians

The investigation will be closely watched in India. Government data shows that approximately 71% of approved H-1B beneficiaries in fiscal year 2024 were Indian nationals, by far the largest group under the programme. Indian engineers, software developers, researchers, and healthcare professionals rely heavily on the H-1B as their primary pathway to US employment, and Indian IT companies have historically been among the biggest users of the visa scheme.

The technology sector as a whole accounts for roughly 60% to 70% of new H-1B applications annually, with consulting firms, engineering companies, healthcare organisations, and universities also significant users.

The probe comes a month after a federal judge struck down the administration's requirement that employers pay a $100,000 fee when applying for H-1B visas, ruling that the executive branch had overstepped its authority by imposing what amounted to a tax without congressional approval.