The US Department of Labor is launching a major investigation into alleged abuse of the H-1B and PERM visa programmes, with IT services firms including Cognizant among those expected to face scrutiny, according to a Fox Business report.
Labour Department Inspector General Anthony D'Esposito announced the probe during an interview with Fox Business on Wednesday, describing it as the Trump administration's first major investigation into alleged H-1B and PERM visa fraud, labour trafficking and the displacement of American workers.
"This is another example where fraud is fueling violent crime," D'Esposito said.
"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."
He said investigators have already issued dozens of subpoenas as part of the investigation.
The announcement comes ahead of Vice President JD Vance's anti-fraud initiative event in Milwaukee later on Wednesday, as the Trump administration steps up enforcement against immigration-related fraud.
An H-1B visa allows US employers to hire foreign professionals in specialised occupations for an initial three-year period, extendable up to six years. The technology sector accounts for the majority of H-1B applications, followed by consulting, engineering, healthcare and higher education.
D'Esposito said the administration wants to ensure that American workers "are not seeing their jobs taken away by foreigners or people who are gaming the system or financially benefiting from bringing these individuals into America."
He also alleged that visa-related fraud extends beyond the technology sector.
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"This is not just people working in factories or actual labor," he said. "These are people working in medical facilities and doctors' offices that are actually putting people in harm's way."
The announcement follows a federal court ruling last month that struck down the Trump administration's proposed $100,000 fee on employers sponsoring H-1B visas, with the judge ruling that the executive branch lacked the authority to impose such a levy without congressional approval.
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