Texas AG Expands H-1B Fraud Crackdown Across Nearly 30 Companies

Texas Attorney General Ken Paxton has escalated a major investigation into alleged H-1B visa fraud, expanding the probe from just a few companies to nearly 30 North Texas businesses now under legal pressure.

The action comes through newly issued Civil Investigative Demands, which function like formal legal orders requiring companies to hand over internal records for review.

This latest expansion builds on a probe that reportedly began in January 2026, when investigators first flagged three firms suspected of manipulating the visa system.

Now, the scope is much wider.

At the center of the investigation are allegations involving so-called “ghost offices” and shell companies. Authorities suspect some businesses may have created fake or lightly staffed operations to appear legitimate on paper, while using those entities to sponsor foreign workers under the H-1B visa program.

The H-1B system is designed to allow U.S. employers to hire skilled foreign professionals in industries like technology, engineering, and finance when qualified American workers are not available. But it has long faced criticism over loopholes and misuse.

Paxton’s office is demanding detailed documentation, including:

• Employee records
• Financial statements
• Business operations data
• Hiring and sponsorship files

Officials say the goal is to verify whether these companies are real, active businesses or simply paper entities built to navigate immigration rules.

Supporters of the investigation argue the crackdown is necessary to protect U.S. workers and prevent companies from exploiting visa programs for cheaper labor or fraudulent hiring pipelines.

Critics, however, warn that aggressive enforcement could create fear among legitimate employers who rely on global talent to fill specialized roles in a competitive labor market.

Paxton has framed the probe as part of a broader effort to restore integrity to immigration-linked employment systems and ensure companies are not abusing federal programs for profit.

If wrongdoing is confirmed, the companies involved could face penalties, legal action, or restrictions on future sponsorships.

The investigation is still ongoing, but the expansion signals a clear escalation in how aggressively Texas plans to police alleged visa abuse inside its borders.