Trump Administration Announces Fraud Rewards

President Donald Trump’s administration announced a $25 million fraud whistleblower initiative Tuesday as Texas Attorney General Ken Paxton’s investigation into suspected H-1B visa abuses puts nearly 30 North Texas businesses under scrutiny.

Fraud Whistleblower Program Details

The Justice Department’s Fraud Whistleblower Incentive Program offers discretionary awards of $10,000 to $30,000 for original tips that lead to criminal charges in covered cases. The Treasury Department committed $25 million to support the initiative.

Paxton Targets Ghost Offices

Paxton’s office expanded its H-1B investigation from an initial three North Texas companies in January to nearly 30 businesses by April 30, according to state announcements.

Ghost Office Companies Listed

The April announcement named 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.

“ghost offices”

H-1B Program Explained

The H-1B program permits employers to petition for temporary foreign workers in specialty occupations, subject to federal requirements. Lawful sponsorship alone does not establish misconduct.

Allen Childcare Lawsuit

Paxton took another step May 12, filing a civil lawsuit against Golden Qi Holdings LLC and Yuan Yao.

H-1B Fraud Case Example

In 2016, a federal judge sentenced brothers Atul and Jiten 'Jay' Nanda to 87 months in prison each after a jury convicted them in a scheme involving Carrollton-based Dibon Solutions.