Labor Department Inspector General Anthony D’Esposito told FOX Business on Wednesday that the Trump administration is stepping up its crackdown on immigration-related fraud and has opened its first significant investigation into claims of labor trafficking, H-1B and PERM visa abuse, and the displacement of American workers.
Ahead of Vice President JD Vance’s nationwide fraud initiative event in Milwaukee, D’Esposito exclusively revealed the investigation on “Mornings with Maria,” describing it as the most recent phase in the administration’s growing anti-fraud campaign.
“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,” said D’Esposito to FOX Business.
Back in November 2025, in order to protect American jobs and guarantee the employment of vital foreign workers in the United States, the Department of Labor launched 175 investigations into possible abuses of the H-1B visa program.
Unannounced H-1B site inspections by US authorities are standard procedures aimed at gathering information concerning potential fraud. U.S. Citizenship and Immigration Services (USCIS) can perform unannounced site visits to ensure compliance with immigration laws by H-1B holders and their employers. These visits are carried out by the Fraud Detection and National Security Directorate (FDNS) as part of the Administrative Site Visit and Verification Program (ASVVP).
Examples of H-1B fraud indicators include: non-payment of the certified wage on the Labor Condition Application (LCA); wage disparities between H-1B workers and others performing similar duties, negatively impacting U.S. workers; non-performance of duties specified in the H-1B petition; and not working at the certified location on the LCA.
The H-1B visa program aims to assist U.S. companies in hiring highly-skilled foreign workers during domestic shortages. However, there are concerns that American workers may be overlooked or unfairly treated, as employers exploiting the program could diminish wages and job opportunities for U.S. workers by bringing in more foreign labor.
The tech industry uses H-1B visas the most, accounting for roughly 60% to 70% of all new applications in recent years. Other top industries include consulting and professional services, engineering and manufacturing, healthcare and medical research and higher education. California, New York, and Illinois are among the top five states for applicants seeking these visas.
Project Firewall
In September, Senate Judiciary Committee Chairman Chuck Grassley and Ranking Member Dick Durbin wrote letters to top US companies, raising questions on their hiring practices.
US officials launched a crackdown on US companies that hired foreign workers on H-1B visas in November. The Department of Labor had started 175 investigations into potential abuses of the H-1B visa program in order to safeguard American jobs and ensure the employment of essential foreign workers in the United States.
The DOL established Project Firewall earlier in September to ensure that qualified Americans are given preference for job openings and to stop companies from abusing the H1B visa program for hiring foreign workers. For the first time in the department’s history, the Secretary of Labor personally certified the start of investigations.
Disclaimer: This article is for general informational purposes only and does not constitute legal, immigration, or tax advice. Immigration laws and government policies are subject to frequent change without notice. The views and opinions expressed by the experts quoted herein, if any, are their own and do not necessarily reflect the views of the publication. Financial Express is not responsible for any decisions made based on this information.