Texas Attorney General Ken Paxton has issued civil investigative demands to nearly 30 North Texas businesses accused of using “ghost offices” to sponsor H-1B visa workers fraudulently.
The action escalates a state-level crackdown on alleged abuse of a federal visa program that has drawn increased political scrutiny in Texas.
“I will not allow the H-1B program to be abused by bad actors seeking to use it as a loophole for allowing foreign nationals to invade Texas,” said Paxton. “My office will continue working to uncover and put an end to fraud within the H-1B program.”
Companies under investigation must now turn over extensive business, financial and employee records as the probe widens.
Why It Matters
Texas is stepping aggressively into immigration enforcement territory typically overseen by federal authorities, using civil investigative powers to scrutinize how companies participate in the H-1B visa program.
State officials say the move is aimed at stopping fraud and ensuring the program operates as intended.
What To Know
Paxton announced on April 30 that his office has taken legal action against nearly 30 businesses in North Texas as part of an ongoing investigation into suspected H-1B visa fraud.
The probe centers on allegations that some companies falsely claimed to operate legitimate U.S. offices to sponsor foreign workers.
According to the Attorney General’s Office, investigators believe several of the businesses under scrutiny operated so-called “ghost offices.”
In these arrangements, companies are accused of listing vacant buildings, residential addresses, or virtual office spaces as active worksites despite having no real business operations there.
State officials say such practices could allow employers to appear compliant with federal H-1B worksite requirements while offering no genuine specialty-occupation jobs at the listed locations.
The H-1B program permits U.S. employers to hire foreign workers in specialized fields, provided they meet strict criteria tied to job duties, pay and work location.
As part of the escalation, Paxton’s office has issued Civil Investigative Demands, or CIDs, compelling companies to produce detailed records.
Those documents include employee rosters, descriptions of products or services provided, financial statements, and internal communications related to company operations.
The Attorney General’s Office publicly named several businesses now under investigation.
They include Tekpro IT LLC, Fame PBX LLC, 1st Ranking Technologies LLC, Qubitz Tech Systems LLC, Blooming Clouds LLC, Virat Solutions Inc., Oak Technologies Inc., Techpath Inc., and Techquency LLC.
Newsweek has contacted each of the companies mentioned above via email for comment. None of them have been accused of any wrongdoing.
Officials said the list represents part of a broader group of nearly 30 businesses in North Texas facing scrutiny. Paxton framed the investigation as a response to what he described as systemic abuse of the visa system.
His office said the investigation is focused on enforcing compliance and identifying fraudulent participation in the program.
Part of a Broader Statewide Enforcement Effort
The inquiry builds on earlier investigative steps taken by the Attorney General’s Office as part of a wider effort to examine alleged misuse of the H-1B program across Texas.
Officials said additional companies may be reviewed as investigators continue to gather records and assess compliance.
Texas is among a small number of states using state-level enforcement tools to pursue alleged fraud tied to a federal work visa program.
The Attorney General’s Office said its goal is to ensure the H-1B system operates within the law and reflects its intended purpose.
What Happens Next
The investigation is ongoing, and no criminal charges have been announced. State officials said the civil demands are a fact-finding step and do not, by themselves, constitute a finding of wrongdoing.
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