Overview
- Labor Department Inspector General Anthony D'Esposito said on Wednesday that his office has opened a large-scale investigation into alleged H‑1B and PERM fraud and has issued dozens of subpoenas as part of the inquiry.
- Investigators are pursuing whistleblower leads that reference large employers, with D'Esposito publicly mentioning Cognizant as appearing in tips while stressing no formal charges or public accusations have been filed.
- The probe will examine a range of alleged abuses including fraudulent application filings, coercive wage‑kickback schemes, worker exploitation and links to human‑trafficking and transnational criminal networks.
- Officials are coordinating the investigation with the White House fraud task force and have set up hotlines for displaced U.S. workers and exploited foreign workers to report complaints and whistleblower tips.
- The enforcement push builds on prior steps such as Project Firewall and follows a recent court setback for the administration’s $100,000 H‑1B fee, with experts warning the inquiry could raise documentation demands and further slow H‑1B and PERM processing.