http://crooksandliars.com/susie-madrak/feds-arrest-11-people-it-visa-fraudFeds Arrest 11 People in IT Visa Fraud
By Susie Madrak Sunday Feb 15, 2009 7:00am
This has been going on for so long, yet no one would do anything about it. It's about damned time:
February 13, 2009 (Computerworld) Federal agents on Thursday said they arrested 11 people in six states in a crackdown on H-1B visa fraud and unsealed documents that detail how the visa process was used to undercut the salaries of U.S. workers.
Federal authorities allege that in some cases, H-1B workers were paid the prevailing wages of low-cost regions and not necessarily the higher salaries paid in the locations where they worked. By doing this, the companies were "displacing qualified American workers and violating prevailing wage laws," said federal authorities in a statement announcing the indictments.
Employers are required to pay H-1B workers prevailing wages, but those wage rates can vary significantly -- by tens of thousands of dollars, depending on the region. How many U.S. workers may have been displaced was not detailed by federal authorities.
The arrests were carried out by federal, state and local agents working in Iowa, California, Massachusetts, Texas, Pennsylvania, Kentucky and New Jersey. The government's action "is the result of an extensive, ongoing investigation into suspected H-1B visa fraud, mail fraud and conspiracy," said Matthew Whitaker, the U.S. attorney for the Southern District of Iowa, in a statement. The investigation was dubbed Operation Pacific Vision.
The H-1B workers were also victims, according to the federal indictments. Some were hired for jobs that didn't exist. One worker from Pakistan who arrived in the U.S. for a programming job, for instance, ended up with a job pumping gas.
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