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Scandal Uncovered: Fraudulent H-1B Companies Exploit Weak Oversight

Americans woke up this month to yet another example of what happens when weak oversight meets opportunistic fraud, and it’s not limited to one city. Federal probes into large-scale scams in Minnesota have already revealed how badly systems can be abused when bureaucrats look the other way, and honest citizens are left to pick up the pieces.

Conservative journalist Sara Gonzales did something real journalists used to do: she followed public records, knocked on doors, and exposed what looks like sham companies operating under taxpayer-funded visa programs. Her on-the-ground reporting in Texas uncovered residential addresses listed as corporate headquarters and empty construction sites posing as offices — proof, at least on the surface, that the H-1B system can be gamed by bad actors.

When the homeowner dialed 911 during Sara’s questioning, it underscored the audacity of people hiding behind the system while ordinary Americans lose jobs and opportunities. These are not harmless technicalities; the reporting shows companies like those named in Sara’s investigation listed dozens of approved H-1B petitions without any evidence of legitimate operations at the listed locations. That is a scandal that demands criminal as well as administrative accountability.

Texans didn’t wait around for Washington to act. Governor Greg Abbott immediately ordered state agencies and public universities to freeze new H-1B petitions until the end of the next legislative session on May 31, 2027, demanding transparency and records so taxpayers know who is being hired with public dollars. This kind of state-level pushback is exactly what’s needed when the federal apparatus either can’t or won’t enforce the law properly.

Attorney General Ken Paxton followed up with a no-nonsense investigation, issuing Civil Investigative Demands to three North Texas businesses identified in these reports and demanding proof they actually exist and employ the workers they claim. That aggressive posture — using every legal tool to root out “ghost offices” — should be replicated nationwide, and anyone caught gaming the system must face the full penalties.

This story is a warning to every hardworking American: when ideology excuses lax enforcement, ordinary citizens pay the price. It’s time for federal agencies to stop posturing and start policing, for Congress to close these loopholes, and for state attorneys general to keep coming after fraudsters until the H-1B program serves Americans first. Patriots should applaud the Texans who took action and demand the same courage from leaders in every state.

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