TEXAS – Texas Attorney General Ken Paxton has initiated a large-scale legal action against nearly 30 companies in North Texas, opening an investigation into alleged fraud in the H-1B visa program. The move has sparked renewed debate over immigration policies and practices within the state’s technology sector.
An official statement from the Attorney General’s office said that Civil Investigative Demands (CIDs) have been issued to the companies, requiring them to submit detailed employee records, financial documents, information on services and products as well as internal and external communications related to their business operations.
Authorities said the investigation is based on suspicions that certain firms misused the H-1B visa program by sponsoring foreign workers in ways that contradict the intent of the law, potentially exploiting the system for their own benefit.
Companies under scrutiny include Tekpro IT LLC, Fame PBX LLC, 1st Ranking Technologies LLC, Qubitz Tech Systems LLC, Blooming Clouds LLC, Virat Solutions Inc., Oak Technologies Inc., Techpath Inc. and Techquency LLC.
Preliminary findings also suggest that some of these firms may have established so-called “ghost offices” — locations that appear operational on paper but lack any real business activity — allegedly used to facilitate visa sponsorship.
In a statement, Paxton said he would not allow the H-1B program to become a loophole exploited by bad actors seeking to bring foreign nationals into Texas unlawfully. He reaffirmed his office’s commitment to identifying and eliminating fraud, adding that the program must serve the interests of American citizens.
As part of the probe, companies have been directed to disclose the identities of their employees, provide detailed descriptions of their services or products, submit complete financial records, and share all relevant business communications. These measures aim to determine whether the firms are genuinely operational or exist only on paper.
Officials indicated that the action is part of a broader investigation into alleged misuse of the H-1B visa system. Similar inquiries in the past have led to legal action against several companies in Texas, including arrests in related cases.
Legal experts note that the H-1B program, which allows skilled foreign professionals to work in the United States, remains a contentious issue. While businesses rely on it to address talent shortages, concerns about its misuse persist — particularly in tech hubs such as the Dallas-Fort Worth region.
Initial reports suggest that many of the companies under investigation are based in areas including Frisco, Irving, and Dallas. However, authorities have not yet disclosed the identities of the firms’ ultimate owners, with further details expected after reviewing responses to the CIDs.
Several of the firms are believed to follow a similar IT staffing model, sponsoring workers under the H-1B program without clear transparency regarding their operations or ownership structures, raising further suspicions of coordinated “ghost office” networks.
The allegations remain at an early stage, and no company has been formally declared guilty. However, the investigation has once again brought attention to concerns over immigration policy and transparency within the tech industry. Officials have indicated that the scope of the probe could expand, and legal action will be taken against any entities found involved in fraudulent practices.
The South Asian community, including Pakistani and Indian professionals working in the region, is closely monitoring the developments, as a significant number of individuals are employed under the H-1B program. Community representatives have expressed concern that misconduct by a few entities could negatively impact the broader reputation of law-abiding professionals.
The local authorities say the investigation may lead to further revelations in the coming months, potentially determining whether the issue is limited to a few companies or part of a larger organized network within Texas’ technology sector.
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