Locked offices, empty floors: US investigators probe H-1B fraud in Dallas linked to 500+ petitions

The action is part of a nationwide investigation and could directly impact Indian IT professionals and outsourcing companies, which are among the largest users of H-1B visas.

Investigators found several offices shut 

According to a press release issued by the DOL OIG on August 13, 2026, D’Esposito travelled to Dallas to meet the agency’s regional audit and investigations teams. He also personally oversaw checks at business locations linked to companies that have a large number of approved H-1B petitions. 

Investigators went door-to-door at a multi-storey building that housed several businesses connected to more than 500 approved H-1B applications. 

According to the official document, several offices visited by investigators were found locked, dark or showing little visible activity at the time of the checks. The OIG said there was little or no visible evidence of business activity at some of the addresses linked to the H-1B petitions. 

However, these observations alone do not establish that the companies or visa petitions were involved in fraud. The visits are part of the OIG’s investigation into whether the businesses and H-1B employment arrangements meet programme requirements. 

Inspector General warns employers 

D’Esposito said the investigation was aimed at employers that try to misuse the H-1B system.

He made it clear that the US would not tolerate fraud in foreign labour programmes. He said the investigation was not simply about checking paperwork but about protecting the programme’s integrity and putting American workers first. 

“When the system is abused, it is ordinary American workers who bear the cost,” D’Esposito said.

He also warned that his office would not stand by while H-1B fraud allows criminal enterprises to grow. The OIG, he said, is following up on every hotline complaint and every lead so that those responsible can be held accountable. 

Dallas action is part of a nationwide investigation 

The checks in Dallas are not a one-off operation.

The DOL OIG first announced the wider effort in July 2026 in coordination with the White House Task Force to Eliminate Fraud. The initiative is backed by President Donald Trump and Vice President JD Vance.

The aim is to find weaknesses in the H-1B system, take legal action against those who break the rules and make sure the programme is not being used in a way that hurts American workers. 

The H-1B visa allows US employers to hire foreign workers for temporary jobs in speciality occupations. The programme has been at the centre of the US immigration and jobs debate for years. 

Indian nationals make up the largest group of H-1B beneficiaries, especially in the IT and technology-services industry. That means any increase in employer checks, worksite inspections or scrutiny of visa petitions could be closely watched by Indian professionals and outsourcing companies. 

What are investigators checking? 

During these field visits, investigators are looking at whether the company sponsoring an H-1B worker is actually operating at the address given in the visa petition. They also want to establish whether the worker is genuinely employed and working at the location mentioned in the petition. 

Investigators can also check whether the worker’s salary, job duties and employer-employee relationship match the information provided to US Citizenship and Immigration Services (USCIS) when the petition was filed. 

An office that is locked, dark or appears to be inactive during an unannounced visit can lead to further scrutiny. 

In serious cases, investigators may look into whether petitions should be revoked or whether the matter should be referred for prosecution. 

This is particularly important in cases involving suspected shell companies that may have filed large numbers of H-1B petitions despite having no real jobs or active business operations. 

More checks could follow 

The OIG has asked people who have information about suspected fraud, waste or abuse involving Labour Department programmes to report it through its hotline or through its website. 

The agency has described the effort as an advancing nationwide initiative. While it has not said which cities will be checked next or given a timeline, the Dallas operation suggests that more field visits could take place in other areas with large numbers of H-1B filings.

The crackdown comes as the H-1B programme is already facing scrutiny in Washington. The Trump administration has pushed several changes over the past year, including higher fees and tighter selection rules, as part of its efforts to overhaul the programme. 

For companies that rely on H-1B workers and for foreign professionals hoping to work in the US, the focus will now be on how far the enforcement drive expands beyond Dallas.