Bengaluru: The US Department of Labor has launched a nationwide investigation into alleged fraud involving the H-1B and PERM employment visa programmes. Labor Department Inspector General Anthony D’Esposito said whistleblower complaints have referred to companies “like Cognizant” in connection with these programmes.Speaking to Fox Business, D’Esposito said the Office of Inspector General (OIG) has already issued dozens of subpoenas and is pursuing leads related to alleged abuse of the employment-based visa system.The investigation comes even as Cognizant’s use of the H-1B programme has declined significantly over the past several years. US Department of Labor data shows the company filed 10,189 Labor Condition Applications (LCAs) in 2018, compared with 3,436 in 2025. An LCA is a mandatory filing employers submit to the Department of Labor before sponsoring a foreign professional for an H-1B visa and attesting that the hiring will comply with wage and labour regulations. An email sent to Cognizant did not receive a response till press time.The investigation, led by the OIG in coordination with federal law enforcement agencies, forms part of the broader crackdown by President Donald Trump’s administration on employment visa fraud under vice-president JD Vance’s Task Force to eliminate fraud.Announcing the probe, the OIG said it is intensifying enforcement efforts after uncovering alleged schemes in which employers and labour brokers submitted fraudulent visa applications, coerced foreign workers into wage-kickback arrangements, and used below-market wages to undercut American workers.According to the agency, the alleged abuses extend beyond paperwork violations and include labour trafficking, forced labour and exploitation of foreign workers. It said the H-1B and PERM programmes are intended to address genuine labour shortages, not facilitate fraudulent hiring practices.“My team, in conjunction with President Trump and Vice President Vance’s Fraud Task Force, has worked relentlessly to uncover fraud, safeguard taxpayer dollars and hold bad actors accountable,” D’Esposito said. “This isn’t just paperwork fraud—it’s the exploitation of vulnerable workers, forced labour, the displacement of American workers and abusive human trafficking,” he said in the press release issued by the US Department of Labor.The OIG has also launched a nationwide awareness campaign encouraging US workers who believe they have been displaced by H-1B or PERM fraud, as well as foreign workers who have experienced coercion, benching, wage kickbacks or fraudulent recruitment practices, to report concerns confidentially.
