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Texas: The Texas Office of the Attorney General has opened a wide-ranging investigation into possible abuse of the H-1B visa program, focusing on three businesses based in North Texas. State officials say the inquiry is part of a larger effort to examine whether certain employers are misusing the federal visa system meant for highly skilled foreign professionals

Investigation Announcement and Scope

The investigation was formally announced on January 28 through a statement from the Attorney General’s office. It marks a significant expansion of state-level scrutiny into how companies sponsor foreign workers under the H-1B visa program. While the visa system is administered at the federal level, Texas officials argue that fraudulent business practices tied to visa sponsorship can still fall within the state’s enforcement authority.

According to the announcement, the inquiry centers on whether the businesses under review engaged in deceptive practices to qualify for and maintain H-1B visa approvals.

Legal Demands Issued to Companies

As part of the probe, the Attorney General has issued Civil Investigative Demands, commonly known as CIDs, to the three companies. These demands carry legal force and require the recipients to turn over a broad range of records. The requested materials include corporate documents, employment records, financial statements, and communications related to day-to-day operations.

State investigators say the documents are necessary to determine whether the businesses meet the basic legal standards required to sponsor foreign workers, including proof of legitimate operations and lawful employment practices.

Allegations of Paper-Only Businesses

The Attorney General’s office outlined concerns that some companies may have existed largely in name only. According to the statement, investigators suspect that certain entities were created primarily to give the appearance of legitimate commercial activity without actually offering real products or services.

In several cases described by officials, businesses reportedly maintained professional-looking websites that advertised offerings which were never delivered to customers. One example cited involved a company that listed a single-family home, described as vacant and unfinished, as its corporate headquarters while presenting itself as an active business operation.

Use of Visa Sponsorships Under Scrutiny

Investigators believe these arrangements may have been used to justify sponsoring foreign workers through the H-1B visa program. Despite limited evidence of revenue, clients, or operational activity, the companies allegedly filed petitions for multiple visa holders over a period of years.

The concern, according to state officials, is that such practices undermine the purpose of the H-1B program, which is designed to help U.S. employers fill genuine skill gaps rather than serve as a vehicle for fraudulent employment claims.

Attorney General’s Position on Enforcement

Attorney General Ken Paxton described the investigation as part of a broader effort to protect local workers and uphold the integrity of employment-related laws. He stated that fraudulent use of visa programs can reduce job opportunities for Texans and distort labor markets.

Paxton emphasized that his office intends to use all available legal tools to investigate and address any confirmed wrongdoing. He also noted that the review of H-1B-related practices will continue beyond this case as part of an ongoing enforcement strategy.

Records Requested and Next Steps

The Civil Investigative Demands require the companies to identify all individuals employed or affiliated with their operations, including foreign workers sponsored under visa programs. Officials are also seeking detailed explanations of the services or products claimed by the businesses, along with internal correspondence that could shed light on how the companies functioned in practice.

At this stage, the inquiry remains preliminary. No criminal charges have been filed, and the names of the businesses involved have not been made public. State officials stressed that the investigation is ongoing and that further action will depend on the findings that emerge from the document review.

Broader Concerns Over Visa Program Oversight

The announcement reflects increasing concern among state authorities about the potential misuse of employment-based visa programs and their effects on local economies. While the outcome of the investigation remains uncertain, officials say the case highlights the importance of oversight and transparency in programs that connect foreign workers with U.S. employers.