Texas Attorney Probes into Alleged H-1B Visa Frauds: Opponents Accuse MAGA Distortion

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Last Wednesday, Texas Attorney General Ken Paxton brought out a public accusation of alleged abuse of the federal H-1B visa program. The public accusation explicitly targets what his office spoke of as fraudulent schemes that are devised to disadvantage U.S. workers.

According to the reports of several news outlets, Paxton said that his office issued Civil Investigative Demands to three North Texas Companies. These investigative demands require the companies to turn over records related to their operations, employees, and visa sponsorship practices.

Here, our EB-1A experts have taken a deep dive into this important news of the accusation of H-1B visa fraud.

What does Ken Paxton’s accusation actually suggest?

Ken Paxton’s accusation was aimed at a bunch of businesses that are purportedly run by Indians. Paxton accused the latter of creating ‘sham companies’ and running ‘ghost offices’ with the scheme to knavishly obtain H-1B visas for foreign workers.

According to the review created by the Attorney General’s office, some companies are allegedly using front websites advertising phantom products and services. The alleged fraud is being committed to procure visa sponsorships. To put it in Paxton’s own statement, “ Any criminal who attempts to scam the H-1B visa program and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law.” In the same context, he also remarked that fraudulent activities such as these are intended to strip jobs and opportunities away from the Texans.

Which companies have been accused by Paxton’s claims?

Since neither any charges have been filed yet, nor have any companies publicly responded, we have not learnt all the information about the accused companies. However, local reports have designated two particular companies, including Qubitz Tech Systems LLC (Which reportedly secured 13 approved H-1B visa employees) and 3BEES Technologies (Which has 27 H-1B visas approved between 2022 and 2025).

What is the wider context behind Paxton’s move?

Paxton’s move sprang into action right after Governor Greg Abbott drafted a letter commanding state agencies and public higher education institutions to freeze all new H-1B visa petitions until May 31, 2027. The action of the state, in turn, reflects the overall heightened scrutiny of the nation surrounding the H-1B visa. The sum total of measures, for instance, includes the Labor Department’s “Project Firewall,” which aims to ensure that employers are prioritizing American workers over and above everyone else.

Another noteworthy point is that Paxton’s investigation surfaces in the backdrop of his senate campaign. While pitted against the four-term senator John Cornyn, whose moderate republican views have all too often been in Paxton’s crosshairs, Paxton is single-mindedly motivated to cast himself as a hardline conservative vanguarding the mantra of ‘America First.’

Opponents’ criticism of the accusation

The opponents of Paxton’s enforcement, along with the industry insiders, are of the opinion that Paxton and the MAGA media are distorting the facts to cast it into a broader ‘H-1B fraud narrative’. In other words, they are mischaracterizing an usual business model in the IT world where the brick and mortar office usually has a small administrative staff (which could also sometimes be a home office among others). More often than not, the workers of such offices physically work out of the offices of major clients.

At GCEB1, our EB-1A green card consultancy stays informed of the broader policy changes and tectonic shifts in the broader U.S. immigration landscape. We believe we won’t be able to guide a candidate in isolation without taking into account all the broader legal and political paradigms that are influencing the U.S. visa landscape.

For more personalized suggestions, reach out to us directly. We wish you a safe and stress-free immigration ahead.