Labor Department Inspector General Investigates Dallas Firms Over 500 Approved H-1B Visa Applications

The U.S. Department of Labor's Office of Inspector General has expanded its nationwide investigation into alleged H-1B visa fraud to Dallas, Texas, conducting door-to-door inspections at a multi-story office building linked to more than 500 approved visa petitions, many of which showed little or no evidence of active business operations.

Inspector General Anthony P. D'Esposito traveled to Dallas as part of the ongoing probe, according to a Department of Labor press release issued August 13. "At one multi-story building housing numerous businesses linked to more than 500 approved H-1B applications, door-to-door inquiries were carried out," the release stated, adding that many of the offices investigators visited showed clear signs of inactivity, including locked doors, lights left off, and little to no evidence of active business operations at the addresses listed in their visa filings.

Despite those findings, the Office of Inspector General has not declared that the companies involved, or the more than 500 H-1B petitions tied to the building, are fraudulent. Officials described the Dallas inspections as part of a broader, ongoing effort to determine whether information submitted under the federal foreign labor program matches actual conditions on the ground at the businesses in question.

D'Esposito framed the investigation as part of a broader effort to protect the integrity of the country's foreign labor programs. "We are sending a clear message: fraud in our foreign labor programs," D'Esposito said, adding that the department would not stand by while jobs are taken from Americans and while H-1B fraud, in his characterization, helps fuel criminal enterprises.

The Dallas investigation forms part of a larger nationwide probe the Department of Labor's Office of Inspector General launched around July 8, working in coordination with a task force established under Vice President JD Vance focused on eliminating fraud across federal programs. According to reporting on the investigation, the department has issued dozens of subpoenas as part of the effort, examining potential visa abuse, worker displacement, wage kickbacks and possible labor trafficking, in coordination with the Department of Homeland Security and the Department of Justice. Officials have said the investigation's focus rests on the companies and middlemen accused of abusing the visa system rather than on the foreign workers themselves, who officials have characterized as potential victims within the alleged schemes under investigation.

The federal investigation has unfolded alongside a related state-level effort in Texas. In January, the Texas Office of the Attorney General announced its own investigation into alleged H-1B visa abuse, issuing civil investigative demands to three North Texas businesses accused of sponsoring numerous visa holders despite showing little clear evidence that the companies provided legitimate services or generated genuine revenue. Texas Attorney General Ken Paxton framed that state-level probe as part of a broader effort to protect Texas workers. "Any criminal who attempts to scam the H-1B visa program and use" so-called ghost offices or other fraudulent tactics should expect to face the full force of the law, Paxton said at the time, adding that his office would continue reviewing the H-1B program to prioritize the interests of American workers.

The Dallas phase of the federal investigation drew additional public attention due to the involvement of conservative media personality Sara Gonzales, host of "Sara Gonzales Unfiltered" on BlazeTV, who accompanied D'Esposito during portions of the on-the-ground inspections. The Department of Labor confirmed on its official X account that it had partnered with Gonzales and BlazeTV to help publicize the investigation's findings. Video footage from the visits shows Gonzales confronting business operators over allegations of visa fraud, including one instance in which she said a person she identified as a suspected "H-1B visa scammer" called police on her during the encounter.

The H-1B visa program allows U.S. employers to temporarily hire foreign workers in specialty occupations that typically require a bachelor's degree or higher, and currently supports more than 1 million non-immigrant foreign workers employed in the United States, according to figures cited in coverage of the investigation. The program has long drawn debate in American politics, with supporters arguing it fills genuine skills gaps in fields such as technology and engineering, while critics contend it can be exploited to undercut wages and displace qualified American workers, a tension that has fueled bipartisan calls over the years for stronger oversight of the program's approval and compliance processes.

The Dallas investigation comes amid a broader tightening of U.S. immigration and visa policy under the current administration, developments that have also affected international student enrollment at American colleges and universities, according to separate reporting on shifting visa issuance trends.

With subpoenas already issued and the investigation continuing to expand into new markets beyond Texas, officials have not provided a timeline for when the Dallas-area inquiry, or the broader nationwide H-1B fraud investigation, might conclude or result in formal enforcement actions against any of the specific companies identified during the on-site inspections.