Archive · 17 Sep 2026
US Labor Department Expands H-1B Fraud Probe Amid Scrutiny
The US government is investigating possible cheating in programs that let companies hire foreign workers.
Investigators say they are receiving more tips from workers and the public.
The investigation includes H-1B and PERM applications.
It is looking at possible fake applications, illegal payments and other abuses.
Officials are checking technology companies, healthcare businesses and other industries.
In Dallas, investigators visited offices connected to hundreds of approved applications.
Some offices appeared closed, but this does not prove that the companies broke the law.
The government also paused Cloudera’s PERM applications after accusing its recruitment process of blocking qualified American workers.
The Department of Labor’s Office of Inspector General says whistleblower complaints and public tips are expanding its H-1B fraud investigation.
The probe examines alleged fraudulent applications, wage kickbacks, labor brokers and potential human trafficking involving H-1B and PERM programs.
Investigators are examining industries beyond technology, including healthcare and other sectors.
An August inspection in Dallas found apparently inactive offices linked to companies with more than 500 approved H-1B petitions.
The Labor Department suspended Cloudera’s PERM processing for 180 days, citing allegations that its recruitment process excluded qualified US workers.
- Who
- The Department of Labor’s Office of Inspector General, led by Inspector General Anthony D’Esposito, is investigating employers, immigration lawyers and labor brokers.
- What
- A widening investigation is examining suspected fraud and abuse in H-1B, PERM and other foreign-worker programs.
- When
- The warning was issued Wednesday; investigators conducted a Dallas visit in August, and Cloudera’s PERM processing was suspended in May for 180 days.
- Where
- The investigation covers the United States, including a field inspection in Dallas.
- Why
- The probe expanded after the agency received whistleblower complaints, public tips and information about suspected fraudulent immigration schemes.
- Investigating agency
- Department of Labor’s Office of Inspector General
- Programs under review
- H-1B, H-2A, H-2B and PERM
- Alleged conduct
- Fraudulent applications, wage-related kickbacks, labor brokering and potential human trafficking
- Industries examined
- Technology, healthcare and other sectors
- Dallas inspection
- Investigators examined addresses associated with companies holding hundreds of approved H-1B petitions
- Cloudera action
- PERM processing was suspended for 180 days
- Legal status
- The investigation is ongoing, and the Dallas findings are not a final determination of wrongdoing