Vice President JD Vance and the Department of Labor’s inspector general launched a major investigation into widespread visa fraud Wednesday, issuing dozens of subpoenas targeting schemes that have bilked American industries for hundreds of millions of dollars while enriching criminal cartels and human traffickers.

Criminal Networks Flooding Labor Market

Labor Department Inspector General Anthony D’Esposito revealed that employers and labor brokers have submitted fraudulent applications for worker visas, exploiting foreign workers through forced wage kickbacks while undercutting American workers with below-market wages. The fraud extends beyond factories into medical facilities and doctors’ offices, where unqualified workers put patients at direct risk. Department of Homeland Security assessments found that as much as 21 percent of H-1B visa petitions contain fraudulent information.

D’Esposito confirmed the investigation targets both H-1B visa holders and employment-based green card recipients. He told reporters the visa fraud connects directly to cartels and transnational gangs, making this another case where fraud fuels violent crime. The schemes have flooded the medical industry with hundreds of millions in losses while displacing qualified American workers across multiple employment sectors.

Corporate Abuse of Worker Programs

Speaking at an anti-fraud event in Milwaukee, Vance explained that the H-1B program was designed to bring brilliant technology professionals, scientists, and doctors to America. Instead, major corporations and overseas fraudsters have weaponized the program to undercut American wages. The vice president announced the Trump administration would block anyone attempting to exploit the visa system from entering the United States.

The H-1B visa permits non-citizens to work in the United States for up to three years when companies need highly skilled foreign workers, with one renewal option available. Tech giants including Amazon, Google, Meta, Microsoft, and Apple recruit many H-1B employees, though workers also fill roles in healthcare, manufacturing, and higher education. Approvals peaked at 442,425 in 2022 under President Biden.

What This Means

The investigation marks a significant escalation in enforcement against immigration fraud that damages both American workers and exploited foreigners caught in coercive labor arrangements. California, New York, Illinois, Texas, and Washington State receive the most H-1B petitions, with 73 percent of workers coming from India. Most hold master’s degrees and work in programming, data communications, or technical support. President Trump previously attempted to impose a $100,000 annual fee on H-1B applicants, but a federal judge struck down that measure in June.