Feds bust H-1B visa scam

Vision Systems Group, a New Jersey IT services company, was indicted last week for conspiracy and mail fraud involving H-1B visas in what authorities say is part of larger investigation into firms that are allegedly abusing the foreign worker visa system.

In addition, federal agents arrested 11 people in seven states for allegedly submitting false statements and documents in support of their H-1B visa petitions. The arrests were carried out by federal, state and local law enforcement agencies in Iowa, California, Massachusetts, Texas, Pennsylvania, Kentucky and New Jersey.

Matthew G. Whitaker, U.S. attorney for the Southern District of Iowa, said the federal investigation involves Vision Systems and five other companies that have said their H-1B workers have been brought to the United States to fill existing IT vacancies. Whitaker said the companies have not always had jobs available for these workers, placing them in non pay status after they arrive.

In some cases, according to the court papers, the H-1B workers have been placed in jobs and locations not previously certified by the Department of Labor, replacing qualified American workers and violating prevailing wage laws. The companies and foreign workers have allegedly submitted false statements and documents in support of their visa petitions.  

The indictment against Vision Systems seeks $7.4 million in forfeitures. In addition to Vision Systems, which maintains a branch office in Iowa, Whitaker said Worldwide Software Services and Sana Systems in Clinton, Iowa, are among the firms under investigation. 

The H-1B program allows companies and universities to employ foreign guest workers for a "specialty occupation" when there is not a sufficient qualified American work force to meet those needs. H-1B visa holders can work in the United States for three years, with an option for an additional three years. The technology industry has repeatedly urged Congress to raise the H-1B cap, which is currently set at 65,000 visas per fiscal year.

For more on H-1B visas:
- see this eWeek.com article

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H-1B vias news from FierceCIO