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Federal Prosecutors Actually Prosecute H1-B Fraud (ap.org)

Slashdot reader McGruber reports that federal prosecutors "have filed conspiracy charges against a part-owner of two information technology firms and an employee for fraudulently using the H-1B program". Both were reportedly recruiting foreign IT workers, according to the AP: Prosecutors said the conspirators falsely represented that the foreign workers had full-time positions and were paid an annual salary [when] the workers were only paid when placed at a third-party client, and the defendants sometimes generated false payroll records... The defendants are charged with conspiracy to commit visa fraud and obstruct justice and conspiracy to harbor aliens.
They're now facing up to 15 years in prison for an "alien-harboring conspiracy" charge -- with a maximum penalty of up to 10 years in prison and a $250,000 fine -- and a separate visa fraud and obstruction of justice charge with a maximum 5-year penalty and a $250,000 fine.

9 of 111 comments (clear)

  1. So they only prosecute a safe, "no-harm" target. by sethstorm · · Score: 5, Insightful

    It's not news to hear them take down trivial targets, let's hear it when they actually take down bigger fish - the kind that result in citizens (especially long-term unemployed) being hired in their place.

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  2. Re:So they only prosecute a safe, "no-harm" target by Marxist+Hacker+42 · · Score: 4, Insightful

    Not a chance, big fish have too many campaign contributions.

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  3. Good, now prosecute the loophole users by ErichTheRed · · Score: 4, Insightful

    The problem with this whole program is that they can't go after companies that violate the spirit of the law. In this case, the government was clearly responding to an actual fraud (falsification of records, etc.)

    I don't really have a problem with the H-1B program, in its original form. Before all the loopholes were discovered, it provided a useful way to get very highly skilled people into the US to work on projects. The thing I don't like seeing is the whole wave of body shops that are clearly using the law to bring people in house who are clearly not highly skilled, but work cheap enough to displace a native employee. I'm a reasonably senior systems integration engineer, and it's clear that the Tatas and Infosys's of the world aren't bringing in Ph. D. geniuses to work as routine DBAs and coders. My team and I get a lot of the output of these folks and have to make it work in the real world...it isn't ground breaking innovative stuff. The other thing that I've seen the offshore firms use H-1Bs for is a rotating "train your replacement" team. When they hook another company for an IT outsourcing deal, this is the team that gets sent in to collect procedures and send the work offshore. When the press picks up on stories like this, these teams are usually the ones the workers are talking about when they say they're being shadowed and forced to document their jobs.

    I really think it's going to take massive unemployment in sectors other than IT for the loopholes to be closed. When the BPO firms start coming for the professional accountants and other "expensive" talent as well as IT, people might notice and/or sympathize. I think lots of people really think that IT folks are way overpaid and don't totally understand the job, cost of living differences, etc. It also doesn't help that there are a lot of people inside and outside of IT that express the opinion that all of the displaced workers were "old fossils" who don't keep up. I'm old and spend a ton of time keeping up, so I hate getting lumped in with this crowd....but at least I'm still employed!

  4. Re:So they only prosecute a safe, "no-harm" target by Alomex · · Score: 4, Insightful

    Which is exactly why Trump proposes a useless wall that anyone with a ladder can get climb over.

    If the real goal was to stem illegal immigration simply having and enforcing high penalties on employers of illegal workers would take care of the problem.

    The whole idea of the wall is to convince simpletons and the uneducated that you will do something, when you really don't intend to.

    Same with the H1B visa program. On paper it is actually a very good thing: it allows you to bring workers from abroad in cases of local shortages. However, in practice it is being used to bring Indian IT workers which are trained by the US IT workers they are replacing. We do not need to change the H1B program, we need to make sure it is used the way the law says it should. Why it doesn't? just like the parent post side, employers make the proper campaign contributions to make sure it doesn't happen.

  5. A company pays $100/hour to a contracting company by bfmorgan · · Score: 4, Interesting

    An the pour worker gets $40/hour. This is a story I see more and more often. An authorize contracting company will supply us a candidate. We hire the candidate at the agreed upon rate of $100/hour. We find out later after he is on board that he has a second contracting company who is his prime contracting agency. This prime agency is not an authorize company to deal with my company. The resulting pay per hour after the authorized contracting company takes their 30-40% and the prime contracting company takes their 30-40% is that pour worker gets $40-$50 per hour. It gets worse, after the period of time that the worker has performed well and we wanted to hire them and transfer the H1-B to my company, the prime contracting company says that if he does this they will report to the government that he didn't actually work in the US. We found out later that they were paying them in Rupee in India. Loopholes are for the dishonest and greedy.

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  6. Re:So they only prosecute a safe, "no-harm" target by MickyTheIdiot · · Score: 5, Informative

    Which brings us to this famous bit of evidence...

    https://www.youtube.com/watch?...

    The people in the HR "profession" actually have seminars in how to avoid hiring American workers.

    You might be right about the program design itself, but the program is gamed in a HUGE way and the US Government knows it and turns a blind eye. If they would simply do some audits and enforce the law this could be partially curbed, but they don't. Corporatist administrations do not care.

  7. Re:So they only prosecute a safe, "no-harm" target by rtb61 · · Score: 4, Insightful

    What the H1B program does is emphatically penalise the competitiveness of companies that train their own. How can US companies that do that right thing and spend millions on training against companies that spend on lobbyists and cheat bringing cheap foreign employees. So every company went from paying for training to demanding trained people for free and unwilling to pay anything for it, not reasonable wages, not taxes to pay for that training and let alone the crazy idea of paying for the training themselves. Yet another part of the collapse in US society.

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  8. Re:So they only prosecute a safe, "no-harm" target by amiga3D · · Score: 4, Interesting

    I'd be curious to see where you get your data. For some reason it's very difficult to find hard data on crime by illegal immigrants. Texas is one of the few states that keeps track of it and there illegals for the period of 2011 to 2015 committed about 7.5 percent of the murders in that state. Given that illegals are estimated to be about 6 percent of the population of the state that's probably slightly higher than average but not seriously higher and probably within a margin of error. I really don't have a problem with people from Mexico coming to the US but I think it's only reasonable to expect them to register and apply for a green card. I don't really get why people think it's okay for 11 million people to just come here and set up shop without documentation. Sure, the wall is a stupid idea and I'm sure it's just Trump being his blowhard self. I figure even he knows it's not going to happen. I really think though that these people should be required to comply with the law.

  9. Re:So they only prosecute a safe, "no-harm" target by drinkypoo · · Score: 4, Insightful

    I don't see anything wrong with it. You're making a huge mountain out of one quote that makes perfect sense in the larger context of the legal framework.

    They're literally having whole seminars on how to craft job requirements such that you cannot fill them, specifically so that you can hire a H1B and treat them like a slave. That's not one quote. That's systemic abuse.

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