The Department of Labor's Office of Inspector General just kicked down the door on what it calls the administration's first major investigation into H-1B and PERM visa fraud, and they brought a whole lot of subpoenas with them.
Inspector General Anthony D'Esposito announced the probe on Wednesday during an appearance on Fox Business, as Trending Politics reported. The investigation targets alleged visa abuse, labor trafficking, and the displacement of American workers. So basically everything critics of these programs have been screaming about for years while being told they just don't understand how the economy works.
D'Esposito said his office is coordinating with the Department of Justice and the White House Fraud Task Force, and they are working off whistleblower tips. He specifically named one company getting attention. "We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of, you know, in the chatter of issues with PERM and H-1B visas," he said. Nothing says "we are serious" quite like dozens of subpoenas landing on desks across corporate America on a Wednesday morning.
For those unfamiliar, the H-1B visa lets employers hire foreign workers in specialty occupations for up to six years. The PERM program is the labor certification step employers use to sponsor foreign workers for permanent residency. In theory, these programs fill gaps where American workers are unavailable. In practice, well, that is apparently what this investigation is about.
D'Esposito also connected the alleged fraud to something more sinister. "This is another example where fraud is fueling violent crime. 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. He also pointed out this is not limited to factory floors. "These are people working in medical facilities and doctors' offices that are actually putting people in harm's way." That is a comforting thought next time you are sitting in a waiting room.
According to D'Esposito, the tech sector accounts for roughly 60 to 70 percent of recent H-1B applications. Other heavy users include consulting, engineering, healthcare, and higher education. California, New York, and Illinois are the top states for applicants, which tracks perfectly with the cost of living in those places. Nothing says "we need cheaper labor" like a state where a studio apartment costs more than a mortgage in Ohio.
Vice President JD Vance chimed in during an event in Milwaukee later that day with a quote that could fit on a bumper sticker. "Here's a simple principle, ladies and gentlemen: American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labor is fighting back against it."
Whether this investigation produces indictments or just really expensive paperwork remains to be seen, but the subpoenas are out there now. Somewhere in a corporate legal department, somebody is having a very bad week.
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