Texas Attorney General Ken Paxton announced on Thursday his office is issuing Civil Investigative Demands (CIDs) to nearly 30 North Texas businesses as part of an ongoing investigation into H1-B visa fraud and exploitation of the federal program.
“I will not allow the H-1B program to be abused by bad actors seeking to use it as a loophole for allowing foreign nationals to invade Texas,” Paxton said in a statement. “My office will continue working to uncover and put an end to fraud within the H-1B program.”
The Texas attorney general’s office said that additional entities 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. Investigators allege these companies engaged in fraudulent practices, including operating so-called “ghost offices” — sham operations that falsely claim legitimate business activity in Texas to sponsor foreign workers under the H-1B program.
The CIDs seek extensive documentation from the targeted businesses, including records identifying all employees, details of specific products or services provided, financial statements, and internal communications related to company operations. Paxton’s office aims to determine whether the firms maintain legitimate operations or function primarily as vehicles for visa sponsorship.
The action builds on Paxton’s sweeping investigation launched in January 2026, which initially targeted three North Texas companies identified in widely circulated videos alleging “ghost office” schemes. Those probes revealed instances of companies listing single-family homes or unfinished buildings as office addresses while advertising nonexistent services to secure H-1B visas.
The H-1B program allows U.S. employers to hire foreign workers in specialty occupations. Critics, including Paxton, argue that loopholes have enabled fraud that displaces American workers and undermines the program’s intent. The expansion to nearly 30 companies signals a broader effort by Texas officials to prioritize American labor interests amid national debates over immigration and skilled worker visas.
Paxton’s office said the investigation remains active and could lead to further enforcement actions to ensure compliance with state and federal laws.
The Texas probe comes amid renewed nationwide scrutiny of the H-1B program under President Trump’s “America First” agenda.
Since taking office, the Trump administration has implemented multiple reforms aimed at protecting U.S. workers, including a $100,000 fee on new H-1B petitions filed for workers outside the United States that became effective September 2025; a shift from a random lottery to a wage- and skills-weighted selection process favoring higher-paid and higher-skilled applicants, which became effective February 2026; and increased prevailing wage requirements.
These changes, along with enhanced vetting and site inspections, seek to curb abuse, reduce displacement of American workers, and ensure the program serves genuine labor shortages rather than functioning as a source of lower-cost foreign labor.
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Christina Botteri is the Executive Editor of The Tennessee Star and The Star News Network. Follow her on X at @christinakb.
Photo “Texas AG Ken Paxton” by Texas AG’s Office.
Good for Texas.
The entire H1-b VISA scam needs to be trash canned. Trump is WRONG about this program.