The H1B Visas is a hot topic and have many scams and frauds associated with it. Recently two Indian-American brothers were arrested from Texas for involvement in crimes relating to H1B frauds. H1B Visas have been a popular tool among US IT companies to fetch foreign cheap talent pool against high paying American counterparts.
The two brothers were sentenced to over seven years of prison for one count of conspiracy to commit H1B Visa scam, one count of conspiracy to import illegal immigrants and four counts of wire fraud. Atul Nanda, 46 and Jiten ‘Jay’ Nanda, 45 were sentenced to 87 months in US prison by the Texas Chief US District judge. The conspirators owned Dibon Solutions, an IT consulting company operating out of Texas.
The modus operandi is commonly known as “benching” which involves hiring a foreign worker without an actual position in the company. The immigrants were then made to work in third-party companies and paid only for the hours spent in the office. They also had to pay for their own H1B Visa application which is against federal law.
Dibon Solutions in their H1B Visa requests to the Department of Labor and Department of Homeland Security stated full-time positions and annual salary details as required by the law. They gathered a significant profit by charging high fees for the services of Dibon consultants in the third party company. The company hiring the consultant would have to pay his hourly rates along with the service charges to Dibon Solutions.
The brothers aimed to dupe both the government and the employees providing false information and making them work in low paying jobs. The scheme presented them with an accessible stock of cheap labor which could be used on a need basis.
Three employees of the firm were also sentenced to two years probation for involving in one count of assisting and abetting visa fraud. One of the employees acted as the office manager, another as a recruiter and the other one as a recruiter and transporter of H1B workers. They were all associated with providing false information or had knowledge of the fraud taking place in their company.