U.S. Department of Labor Inspector General Anthony D’Esposito announced Wednesday that the department’s Office of Inspector General had launched an investigation into alleged fraud involving H-1B and PERM visas.
The probe examines claims of visa abuse, labor trafficking, and the displacement of American workers. D’Esposito described the effort as the administration’s first major investigation of its kind into these programs.
The announcement came during an interview on Fox Business’ “Mornings with Maria” and preceded Vice President JD Vance’s nationwide fraud initiative event in Milwaukee later that day.
As part of the probe, investigators have issued dozens of subpoenas and are coordinating with other federal agencies, including the Department of Justice, and the White House Fraud Task Force.
D’Esposito stated that the investigation draws on whistleblower information. “We’ve already started to issue dozens of subpoenas; we are going to make sure that we track down every lead. We have whistleblowers talking about some of the biggest companies like Cognizant, who have been sort of, you know, in the chatter of issues with PERM and H-1B visas,” he said.
He added that the office would “work side by side with the president and vice president’s fraud task force to exhaust every lead.”
In the same interview, D’Esposito linked some alleged fraud to broader criminal activity. “This is another example where fraud is fueling violent crime. Much of the visa and the human trafficking that we see when it comes to this foreign labor is tied to cartels, is tied to transnational gangs, and this is the work that we should be doing, not only to make America safe again, but to make America more affordable again,” the inspector general went on to say.
D’Esposito also addressed the scope of potential issues beyond traditional labor roles. “This is not just people working in factories or actual labor. These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way.”
The H-1B visa is a nonimmigrant classification that permits U.S. employers to hire foreign workers in specialty occupations requiring specialized knowledge. Initial approval covers up to three years and may be extended to a maximum of six years.
The PERM program involves labor certification applications that employers file with the Department of Labor as a step toward sponsoring foreign workers for permanent residency.
According to D’Esposito, the technology sector accounts for roughly 60 to 70 percent of recent H-1B applications. Other sectors include consulting and professional services, engineering and manufacturing, healthcare and medical research, and higher education. California, New York, and Illinois rank among the top states for applicants.
Vice President JD Vance addressed the matter during his event in Milwaukee. “Here’s a simple principle, ladies and gentlemen: American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labor is fighting back against it.”
