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US Government Launches Fraud Investigations Into Dozens of Companies for H-1B Lottery Abuse

Many firms use the yearly H-1B visa lottery to obtain work authorization for new hires in order to retain the top international talent. However, because a lottery is inherently unpredictable, some companies look for strategies to increase their odds of finding the “winning ticket” and a method to keep essential employees in the country.

The Department of Homeland Security (DHS) recently reported that some firms have created plans with other organizations to submit numerous submissions on behalf of the same potential employee. Recent years have seen a substantial increase in these kinds of agreements; this month, the DHS reported that more than 52% of all submissions were for beneficiaries with multiple registrations. This approach, in the agency’s opinion, raises concerns about whether businesses would be unfairly abusing the H-1B lottery system.

The federal government has announced a three-pronged strategy to combat abuse: first, DHS will conduct administrative fraud investigations into organizations suspected of conspiring to increase the chances of potential employees in the recent H-1B lottery selection process; second, DHS will start referring suspected violator companies to law enforcement for criminal prosecution; and third, DHS intends to amend relevant regulations governing H-1B lottery registrations, as needed.

These announcements came as DHS reported a record-high number of submissions for the FY 2024 H-1B lottery.

This article, under no circumstances, acts as legal advice; therefore, for any immigration questions, please contact your Attorney or the Ahluwalia Law Offices, P.C. (Team ALO).