The USA is launching the largest-ever investigation into the H-1B program. Immigration authorities are conducting on-site audits of companies, revoking visas within hours without any grace period, and banning employers for fraudulent positions and misconduct.
How the Investigation Unfolds
Agents from the US Department of Labor and USCIS are conducting on-site audits at workplaces. They arrive directly at offices and verify whether H-1B employees are actually working. In several cases, inspectors have discovered empty buildings, lights turned off, doors locked — no activity whatsoever.
When authorities need clarification from a company and the employer cannot respond or provide necessary documents, USCIS blocks them. The blockage is followed by visa revocation.
Consulting Firms Lose Visas in Bulk
Consulting firms are the primary source of problems in the H-1B system. When one company is banned, ALL visas of its employees are revoked at once. If a firm sponsored 500 employees on H-1B, all 500 receive a revocation notice and an order to leave the USA.
Large companies like Cognizant cannot escape the pressure either. Authorities froze their new green card petitions, stating they will conduct thorough inspections of hiring, salaries, and compliance with requirements before approval.
Examples of Fraud
In April 2026, two Indians who operated a fake consulting firm were convicted. One was sentenced to five years in prison and fined $50,000.
In Texas, a scheme involving a “phantom office” was discovered — the company Blooming Clouds had no real office but was issuing visas. It is not on the Department of Labor’s official blacklist, yet this constitutes fraud.
Another firm, Virat Solutions, was also flagged as fraudulent due to the absence of a real office.
The Main Problem with Intermediary Firms
In the H-1B system, there’s an offer going around: “Give us your salary, and we’ll pay it out.” This is total risk. Such consulting firms are unstable — they can operate today and shut down tomorrow. When this happens, all visas are revoked at once.
Moreover, employees often don’t get paid if they’re not working, but the company keeps them on the payroll for appearances. This is considered fraud.
How to Protect Yourself
First: visit the Department of Labor website and track the list of disqualified H-1B employers. It’s recommended to bookmark it and check regularly.
Second: never work through a consulting firm if you don’t have actual employment. Don’t sit on the bench looking for a position while sponsored by an intermediary.
Third: work for a large company with direct salary, not through an intermediary firm. The risk of contract termination and visa revocation is minimal.
EB-1 as a Safety Net
If you’re on H-1B or planning to go there, prepare for EB-1 (self-sponsored green card). If you start now, within three years you’ll get a green card and be protected.
If your H-1B is revoked, you have a 60-day grace period. After that, you can switch to EB-1 literally within one or two weeks. You can apply yourself, through your company, or even work for yourself.
An additional benefit: if you prepare for EB-1, you automatically gain eligibility for other visas — UK Global Talent, Australian National Innovation Visa, Singapore One Pass, and UAE Golden Visa. All require one thing: a profile that you prepared for EB-1. This gives you the option to relocate to another country if you wish.
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