Cognizant named in Trump administration's H-1B visa fraud investigation: Here's why

The Donald Trump administration has launched what it describes as its most aggressive investigation yet into alleged fraud involving H-1B and PERM employment visa programmes, placing Cognizant in the spotlight after a senior federal official referenced the company while discussing the probe.

According to reporting by NDTV, Anthony D'Esposito, Inspector General at the US Department of Labor, said the investigation is already underway, with dozens of subpoenas issued as officials pursue allegations involving labour trafficking and abuse of foreign worker programmes.

While announcing the investigation, D'Esposito said whistleblowers had raised concerns involving "some of the biggest companies, like Cognizant". He did not provide specific allegations against the company or disclose further details about its involvement.

What prompted Cognizant's mention?

The investigation centres on alleged abuse of the H-1B and PERM employment visa systems.

Speaking to Fox News, D'Esposito described the initiative as an unprecedented enforcement effort.

"Without a doubt... we are going to take an aggressive action, which we believe is probably the most aggressive action against foreign labour fraud by an Inspector General, this administration."

He added that investigators had already begun issuing subpoenas. "We've already started to issue dozens of subpoenas."

The official also said investigators intend to pursue every lead received through whistleblower complaints. "We'll track down every lead."

During the interview, he said those complaints included concerns involving "some of the biggest companies, like Cognizant."

At the time of publication, no formal allegations or enforcement action against Cognizant had been announced by the US Department of Labor as part of the investigation.

Probe focuses on alleged abuse of foreign worker programmes

In a statement cited by NDTV, the US Department of Labor's Office of Inspector General (OIG) said it had uncovered widespread schemes involving employers and labour brokers submitting fraudulent applications.

According to the department, investigators believe some foreign workers were exploited through coercive wage kickback arrangements.

The statement said such practices undermine programmes intended to address genuine labour shortages rather than benefiting employers engaging in fraudulent conduct.

The investigation is expected to be carried out alongside the fraud task force established under the President and Vice President, D'Esposito said during the interview.

H-1B and PERM visas explained

The investigation concerns two key employment-based immigration programmes used by US employers.

• H-1B visas allow US employers to hire foreign professionals in specialised occupations.
• PERM is the labour certification process employers typically complete before sponsoring certain workers for permanent residency.
• Thousands of Indian professionals receive H-1B visas every year, making the programme particularly significant for India's technology services industry.

Several major Indian IT companies, including Cognizant, have historically relied on H-1B visas to deploy skilled professionals in the United States.

Official links visa fraud to broader criminal activity

During the interview, D'Esposito said investigators believe some alleged fraud extends beyond immigration violations.

He described H-1B and PERM visa fraud as "another example where fraud is fuelling violent crimes."

The inspector general also claimed some cases are linked to organised criminal networks.

According to D'Esposito, investigators have identified connections involving cartels and transnational gangs operating through foreign labour schemes.

He further claimed the alleged abuse is not confined to labour-intensive industries.

According to his remarks, foreign workers employed in healthcare settings could also be affected, creating risks for patients if fraudulent hiring practices go unchecked.

D'Esposito said the investigation also aims to prevent abuse of employment-based visa programmes that could displace American workers.

What happens next?

The investigation remains at an early stage. Federal officials have confirmed subpoenas have already been issued and said additional leads will continue to be pursued as investigators examine alleged fraud involving H-1B and PERM visa programmes.

So far, the public information released by the US Department of Labor consists of the launch of the investigation, the issuance of subpoenas, and D'Esposito's comments identifying Cognizant as one of the companies mentioned by whistleblowers. No findings of wrongdoing against the company have been announced.