Infosys Fined $35M For Illegally Bringing Programmers Into US On Visitor Visas

McGruber writes "The U.S. government fined Infosys $35 million after an investigation by the Department of Homeland Security and the State Department found that the Indian company used inexpensive, easy-to-obtain B-1 visas meant to cover short business visits — instead of harder-to-get H-1B work visas — to bring an unknown number of its employees for long-term stays. The alleged practice enabled Infosys to undercut competitors in bids for programming, accounting and other work performed for clients, according to people close to the investigation. Infosys clients have included Goldman Sachs Group, Wal-Mart Stores Inc. and Cisco Systems Inc. Infosys said in an email that it is talking with the U.S. Attorney's office, 'regarding a civil resolution of the government's investigation into the company's compliance' with employment-record 'I-9 form' requirements and past use of the B-1 visa. A company spokesman, who confirmed a resolution will be announced Wednesday, said Infosys had set aside $35 million to settle the case and cover legal costs. He said the sum was 'a good indication' of the amount involved."

Comments

When

[msobkow]

When is the punishment going to be "No, you're out of business, you fraud. You don't play fair. You cost us jobs. You're GONE."

These bastards *made* more than 35 million off the scam. They're turning a profit off it.

Re:When

[thej1nx]

How about being reasonable, and having it as "You broke laws and made profit illegally, so we take away ALL of that illegal portion of your profits that was made illegally and charge a 5-10% penalty on top of that, so that it is no longer profitable for you to break our laws" ?

Corporations care just for the profits. If it is profitable for them to break laws, despite the current penalties involved, they will do so. Make it unprofitable and they are as law-abiding as the next guy.

You know, it might be kinda better than all that xenophobic bullshit about FOREIGNERS making profittttsss off you.... and trying to shut them down and costing even the legitimately employed folks of the company, their jobs. But I guess, racism and xenophobia is more popular...

Look at the bright side

[Ol Olsoc]

My guess is that more American companies will be looking into this as a solid business model, and that the fines will just be a cost of doing business.

Anything to get rid of those pesky American workers.

Is that Treble damages on top of fines?

[Anonymous Coward]

For each and every position which they did not higher industry median wage for they should pay 3 times the difference in wages + benefits (including pay-ins to the government) that were not disbursed. Further they should also have to pay some type of fine per position, per (year/quarter) that the violations occurred.

In other words, they should for SURE show a net loss for this bad behavior. If the behavior is egregious enough those in authority at the time should also face real jail time.

Anything less than that is a slap on the wrist and will not curb this behavior among companies who look at the balance sheet and conclude that the fines are a cost of doing business.

H1B Scam

[oldhack]

Dump H1B. Instead of giving out Visa for foreign nationals, we should try to KEEP foreign graduates in this country - make it easier for foreign students graduating from US colleges to live and work in the US.

This is no brainer - many of the best and brightest from all over the world are already here in our universities.

Further proof of the H1B visa myth

[Anonymous Coward]

There are both good and bad reasons to grant Visas to tech workers. We should not turn down genuine talent that wants to work here. Having bright minds emigrate, work, live, contribute, and integrate here is probably one of the biggest foundations of America's success.

What we don't want is a bunch of scum fucks importing slave-pay workers to save a buck. I say bring in the IT/tech talent, but on the condition they are paid competitive wages and compensation (And enforce that with some teeth!). You also need to make sure they have freedom and mobility so their sponsor company can't hold their visa over them as a form of extortion.

Granting guest workers MORE privileges and protections will ensure that they're less attractive to unscrupulous outfits looking to save money instead of hiring available domestic talent. Companies that genuinely need foreign talent will happily pay for it.

Re:Big deal

[Mateorabi]

Give H1B holders who blow the whistle on their employers violating the law (overworking them, or claiming and paying them as if it were a much lower skilled job that in reality is higher skilled, the employer just wanted to scare off US workers, etc.) either fast-path to a Green Card, double the pay (paid by fines) they would have earned, and/or freedom to move to a different employer for their stay.

I.e. change the incentives for H1B visa holders to rat out misbehaving employers, rather than being scared to say anything because they loose if they do.