US Department of Labor Launches H-1B And PERM Fraud Probe, Targets Cognizant

The US Department of Labour has launched a wide-ranging investigation into alleged fraud involving the H-1B and PERM work visa programmes, with Indian IT major Cognizant named among companies under scrutiny.

“Home / Immigration / US widens H-1B visa fraud crackdown; Cognizant among IT firms mentioned US widens H-1B visa fraud crackdown; Cognizant among IT firms mentioned Explained: Why the US has launched a probe into H-1B and PERM visa fraud Advertisement”

Business Standard

Labour Department Inspector General Anthony D'Esposito said investigators had already begun issuing subpoenas and were pursuing multiple leads, while the probe is being led by the Department of Labour's Office of Inspector General (OIG) as part of the Task Force to Eliminate Fraud led by US Vice President JD Vance.

BusinessLine

In Milwaukee, Wisconsin, JD Vance framed the crackdown as protecting American jobs, saying, "American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it," while the investigation examines allegations of fraudulent visa applications and exploitation of foreign workers.

The probe is also tied to concerns about human trafficking and forced-labour networks linked to guest worker visa programmes, with the OIG saying it is determined to root out schemes that take jobs from American workers.

The investigation comes as a federal judge struck down the administration’s one-time $100,000 fee requirement for employers seeking new H-1B visas last month, after President Donald Trump signed an order imposing it.

D'Esposito told Fox Business that investigators had already started issuing “dozens of subpoenas” and would track down every lead, while saying whistleblowers were talking about some of the biggest companies like Cognizant.

Speaking to Fox Business, D'Esposito said, "We've already started to issue dozens of subpoenas; we are going to make sure that we track down every lead," and he added that whistleblowers were raising concerns about Cognizant in the chatter of issues with PERM and H-1B visas.

Fox Business

The Labour Department’s OIG said it is examining alleged schemes in which employers and labour brokers submitted fraudulent applications, exploited foreign workers through coercive wage-kickback arrangements, and undercut American workers by bringing in below-wage labour.

The OIG also described the conduct under investigation as including worker exploitation, forced labor, displacement of American workers and human trafficking, while noting that its formal release did not name Cognizant or any other company.

JD Vance linked the probe to enforcement against fraud in employment-based visa programmes, saying, "Big corporations and fraudsters overseas are using this program to undercut the wages of American workers," and warning that those trying to take advantage of the visa program are not allowed into the United States.

The investigation’s scope includes allegations that employers and labour brokers submitted fraudulent H-1B and PERM applications, exploited foreign workers through coercive wage-kickback arrangements, and hired foreign labour at below-market wages.

“Trending: US-Iran war PM Modi in Indonesia FIFA World Cup 2026 Nijjar killing Ketan Agarwal murder advertisement US launches investigation into alleged H-1B visa fraud; Indian IT firm under scrutiny FP News Desk _•_ July 9, 2026, 06:36:04 IST advertisement JD Vance said the Labor Department has sought dozens of subpoenas and launched multiple probes into companies involved in alleged scams Advertisement”

Firstpost

The OIG said, "These abuses undermine the integrity of Department of Labour programmes designed to address genuine labour shortages—not to line the pockets of bad actors at the expense of American jobs," and it said the probe also targets suspected human trafficking and forced-labour networks linked to guest worker visa programmes.

The scrutiny could have implications for major technology companies, outsourcing firms and thousands of foreign workers, particularly Indians employed in the US technology sector, as the H-1B visa programme is widely used by US technology companies to hire highly skilled foreign professionals.

The BusinessLine report said 52,360 new H-1B visas have been approved in fiscal year 2026 (YTD), compared with 113,485 in 2025 and 139,692 in 2024, as the administration’s decision to launch a large investigation comes amid a decline in approvals.

The probe also follows the administration’s earlier attempt to tighten H-1B rules through a one-time $100,000 fee on new petitions, which a federal judge struck down last month, leaving the investigation as the next major enforcement step.