Texas Attorney General Targets 3 Businesses For 'Illegal Activity' Amid Probe Into H-1B Visa Abuse

Last Updated:January 29, 2026, 09:14 IST

Texas Attorney General Ken Paxton accused three North Texas companies of engaging in fraudulent activity to secure H-1B visas, including the advertisement of non-existent services.

With President Donald Trump ordering a stricter H-1B visa programme, Texas has now stopped H-1B hiring for state agencies and universities. (Representative Image)

Texas Attorney General Ken Paxton on Wednesday (local time) announced a sweeping investigation into the H-1B visa programme by businesses, and issued Civil Investigative Demands to three North Texas companies suspected of engaging in fraudulent activity.

This move comes after Texas Governor Greg Abbott ordered an immediate freeze on new H-1B visa petitions across all state agencies and public universities, citing reported abuse of the federal programme and vowing to prioritise American workers for taxpayer-funded positions.

In an official statement, Paxton said reports have indicated that the three businesses under investigation have likely engaged in illegal activity to scam the H-1B visa programme by setting up sham companies featuring websites advertising non-existent products or services to Texas consumers in order to fraudulently sponsor H-1B visas.

He said evidence had suggested that one of the businesses had registered a single-family home as its office address and, on its website, listed its worksite address as that of an empty, unfinished building. The Attorney General claimed that these companies have allegedly sponsored numerous H-1B visas in recent years despite a lack of evidence that they actually provide for any of the products or services advertised.

“Any criminal who attempts to scam the H-1B visa programme and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law," Paxton said. “Abuse and fraud within these programmes strip jobs and opportunities away from Texans."

As part of the investigation into the H-1B visa programme, Paxton demanded documents identifying all employees working for these companies, records detailing the specific products or services provided, financial statements, and communication related to company operations of the North Texas businesses.

Texas On H-1B Visas

This came after Texas Governor Greg Abbott has directed state agencies and public universities to immediately freeze new H-1B visa petitions, saying the programme has been used in ways that disadvantage American workers.

The move comes four months after US President Donald Trump overhauled the H-1B system by introducing a $100,000 application fee and prioritising higher-paid applicants — changes that business groups say could make it harder for US companies to attract global talent.

The H-1B visa programme permits US employers to bring in foreign professionals for specialised positions typically requiring at least a bachelor’s degree. The program offers 65,000 visas annually, with an additional 20,000 reserved for workers with advanced degrees, approved for three to six years.

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