Federal Official Mentions Cognizant as US Intensifies H-1B Fraud Probe

The United States government has escalated its crackdown on alleged fraud involving H-1B visa and PERM abuse, labour trafficking, with companies like Cognizant being mentioned by a senior federal official.

“For far too long, fraudsters believed they could game the US employment-based visa system and get away with it. They were wrong. This isn’t just paperwork fraud; it’s the exploitation of vulnerable workers, forced labor, the displacement of American workers, and abusive human trafficking,” Anthony D’Esposito, Labour Department Inspector General, said in a statement.

In an interview with Fox News on July 8, D’Esposito said the investigators had already issued dozens of subpoenas, as part of what he called as the Trump administration’s most aggressive action against foreign labour fraud.

“We have whistleblowers talking about some of the biggest companies like Cognizant who have been in chatter of issues with PERM and H-1B Visas,” he told Fox News.

The H-1B visa is a non-immigrant US work visa that allows American companies to temporarily employ foreign professionals in specialised occupations. The visa is initially granted for a period of up to three years and can be extended for another three years, capped at a maximum of six years.

The PERM programme, meanwhile, is the labour certification as a mandatory step towards an employment-based Green Card, where an employer proves to the Department of Labour that they could not find a qualified, willing US worker for the role.

This crackdown followed a June legal setback for the administration, when a federal judge struck down Trump administration’s controversial immigration measures requiring employers to pay a controversial $100,000 fee for new H-1B visas. US President Donald Trump introduced the ruling last year through a presidential proclamation.

The probe is expected to be closely watched in India, as Indian nationals consistently account for over 70% of all H-1B approvals. Large technology firms such as Cognizant frequently rely on this skilled-worker pipeline to bring Indian professionals to the United States.