Texas Attorney General Ken Paxton has launched a sweeping investigation into alleged abuse of the H-1B visa programme by businesses operating in the state. The probe begins with three North Texas companies, which officials suspect may have used fraudulent methods to sponsor foreign workers. The investigation was announced on January 28, showing a stronger push by Texas authorities to crack down on companies that may be misusing the federal visa system.
Texas opens major probe into alleged H-1B visa abuse
As part of the investigation, Paxton’s office has issued Civil Investigative Demands (CIDs) to the three businesses. These legal demands require the companies to turn over extensive records related to their operations.
According to the Attorney General’s office, the firms are suspected of engaging in illegal activity to scam the H-1B visa programme, which allows US employers to hire foreign workers for specialised roles. Some of the companies under scrutiny were reportedly flagged after being identified in videos that circulated widely online.
Allegations of sham companies and ‘ghost offices’
State officials say early evidence points to the use of sham or “ghost” companies being run on paper. These businesses allegedly ran websites advertising products or services that did not actually exist or were never offered to consumers in Texas.
🚨BREAKING: I'm announcing a sweeping investigation into H-1B visa abuse, starting with three North Texas businesses.
— Attorney General Ken Paxton (@KenPaxtonTX) January 29, 2026
Any criminal who attempts to scam the H-1B visa program and use "ghost offices" or other fraudulent ploys should be prepared to face the full force of the law. pic.twitter.com/FHuHCJh3iH
In one example cited by investigators, a company registered a single-family home as its office address. On its website, the same firm listed its worksite as an empty and unfinished building, despite claiming to operate as a functioning business.
Despite little evidence that these companies provided real services or generated genuine revenue, officials say they have sponsored numerous H-1B visas in recent years.
Attorney General Paxton said the investigation is aimed at protecting Texas workers and holding companies accountable. “Any criminal who attempts to scam the H-1B visa program and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law,” Paxton said.
He added that fraud within the visa system harms local workers. “Abuse and fraud within these programs strip jobs and opportunities away from Texans. I will use every tool available to uproot and hold accountable any individual or company engaged in these fraudulent schemes. My office will continue to thoroughly review the H-1B visa program and always work to put the interests of Americans first.”
What the state is asking for?
As part of the probe, Paxton’s office has demanded documents that identify all employees working for the companies under investigation. Officials have also asked for records detailing the specific products or services the firms claim to provide, along with financial statements and communications related to company operations.
The Attorney General’s office said the investigation is still underway. No criminal charges have been filed so far, and the companies involved have not been publicly named.
Officials stressed that further action could follow depending on what the requested documents reveal, as Texas continues to examine potential misuse of the H-1B visa programme.