🔥 Trending US Investigates H-1B and PERM Visa Fraud, Cognizant Under Scrutiny

The U.S. government has conducted investigations into alleged H-1B and PERM visa fraud involving Cognizant, a global IT services and consulting company. These investigations typically focus on ensuring compliance with U.S. immigration laws designed to protect American workers and prevent the misuse of visa programs.

Background of H-1B and PERM Visas

To understand the nature of the alleged fraud, it's essential to briefly explain H-1B and PERM visas:

• H-1B Visa: This non-immigrant visa allows U.S. employers to temporarily employ foreign workers in specialty occupations. These occupations generally require a bachelor's degree or higher in a specific field. The H-1B program is popular in the tech industry for bringing in skilled foreign workers.
• PERM (Program Electronic Review Management) Labor Certification: This is the first step in the process for many employment-based green card applications. Employers must obtain a PERM certification from the Department of Labor (DOL) before filing an Immigrant Petition for Alien Worker (Form I-140) with USCIS. The PERM process requires the employer to demonstrate that there are no qualified U.S. workers available and willing to fill the position at the prevailing wage.

Allegations and Investigations Involving Cognizant

Investigations into Cognizant, and similar IT consulting firms, have often centered on allegations that they:

1. Misused the H-1B Visa Program to Replace American Workers: Critics and investigators have sometimes alleged that companies use H-1B visas not to fill genuine skill gaps, but to replace higher-paid American workers with lower-paid foreign workers, thus undermining the intent of the program. While the H-1B program does not explicitly prohibit replacing a worker if the prevailing wage is paid, the spirit of the law is often debated.
2. Engaged in "Bench" or "Furlough" Practices: Some allegations suggest that H-1B workers were brought to the U.S. but not immediately placed on projects, leading to periods where they were "benched" without pay or with reduced pay, which can violate H-1B wage requirements. H-1B regulations generally require employers to pay the prevailing wage from the start of employment, even if the employee is not actively working on a client project.
3. Submitted Fraudulent PERM Applications: This is a more serious allegation. Fraud in PERM applications can involve:

• Fictitious Job Requirements: Tailoring job descriptions to precisely match the qualifications of a specific foreign worker, rather than reflecting actual minimum requirements for the role.
• Sham Recruitment Efforts: Conducting recruitment efforts that are designed to fail, such as advertising in obscure places, setting unreasonable requirements, or rejecting qualified U.S. applicants for illegitimate reasons, to ensure no U.S. worker is found.
• Misrepresentation of Prevailing Wages: Understating the prevailing wage for a position to reduce labor costs.
• "Bench and Switch" Schemes: Bringing H-1B workers to the U.S. and then filing PERM applications for them for positions that were never genuinely open to U.S. workers, or for positions that are significantly different from their H-1B role.

Specific Cases and Outcomes

While specific details of ongoing or past investigations are not always publicly disclosed in full, several instances have highlighted the government's scrutiny:

• 2018 Indictment of Former Cognizant President: In 2018, a former Cognizant president, Gordon Coburn, and a former chief legal officer, Steven Schwartz, were indicted on charges related to a bribery scheme in India, which is distinct from H-1B/PERM fraud but indicates broader legal scrutiny on the company's operations. While not directly H-1B fraud, it shows the company has been under federal investigation for other matters [1].
• Broader Industry Scrutiny: It's important to note that investigations into H-1B and PERM fraud are not unique to Cognizant. The U.S. Department of Justice (DOJ), Department of Labor (DOL), and U.S. Citizenship and Immigration Services (USCIS) have actively pursued cases against numerous IT consulting firms for similar alleged abuses. These investigations often result in fines, debarment from visa programs, or even criminal charges for individuals involved.
• Focus on "IT Consulting" Model: A significant portion of the scrutiny has been directed at the "IT consulting" business model, where companies sponsor H-1B workers and then "lease" them out to client companies. This model has often been criticized for potentially facilitating wage arbitrage and making it harder to track compliance with H-1B rules.

Government Agencies Involved

Several U.S. government agencies are typically involved in investigating H-1B and PERM visa fraud:

• U.S. Department of Labor (DOL): Responsible for PERM labor certifications and investigating wage and hour violations under the H-1B program.
• U.S. Citizenship and Immigration Services (USCIS): Oversees the H-1B petition process and can deny petitions or revoke approvals if fraud is suspected.
• U.S. Department of Justice (DOJ): Can pursue criminal charges for visa fraud and civil actions for discrimination or pattern and practice violations.
• U.S. Immigration and Customs Enforcement (ICE): Conducts investigations into immigration-related crimes.

Impact of Investigations

Such investigations can have significant impacts on companies like Cognizant:

• Reputational Damage: Allegations of fraud can severely damage a company's public image and trust among clients and employees.
• Financial Penalties: Companies found guilty of fraud can face substantial fines.
• Debarment: In severe cases, companies can be debarred from participating in U.S. government contracts or from sponsoring future H-1B or PERM applications.
• Increased Scrutiny: Even after an investigation concludes, the company may face heightened scrutiny from immigration authorities in the future.
• Operational Disruptions: Legal proceedings and compliance efforts can divert significant resources and attention from core business operations.

While specific details regarding Cognizant's direct involvement in H-1B/PERM fraud investigations are often complex and not always fully public, the broader context is that the U.S. government actively investigates companies across the IT sector for potential abuses of these visa programs.

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References:

[1] U.S. Department of Justice. (2018). Former President and Chief Legal Officer of Cognizant Technology Solutions Corporation Indicted for Foreign Bribery Scheme. Retrieved from justice.gov archives. (Note: Specific link may vary over time, but the press release is publicly available).