Indian American company Dibon Solutions indicted for misuse of H1B visa

According to the 15-page indictment filed last month and unsealed this month,Nanda brothers 8211; the owners of the company 8211; along with others named in the court conspired to fraud the H-1B system.

The indictment alleges that Dibon hired foreign workers on H-1B visas and instead of paying them,used them to work for a third company and gave them the salary only when they worked for the third company.

The company 8220;sponsored the workers on H-1B visas with the stated purpose of working at Dibon headquarters in Carrollton,Texas,but,in fact,required the workers to provide consulting services to third-party companies located elsewhere,8221; the indictment alleges.

8220;Contrary to the representations made by the conspirators to the workers and the government,the conspirators paid the workers only when the conspirators placed the workers at a third-party company and only if the third- party company actually paid Dibon first for the workers8217; services,8221; it said.

Additionally,in Dibon8217;s visa paperwork,it falsely represented that the foreign workers had full-time positions and were paid an annual salary,as required by regulation to secure the visas,the indictment alleges.

This scheme provided the company with skilled foreign workers who could be used on an 8220;as needed8221; profitable because it required minimal overhead and Dibon could charge significant hourly rates for a computer consultant8217;s services.

Accordingly,the company charged substantial profit margin when a consultant was assigned to costs when a worker was without billable work.

8220;This scheme is known as 8220;benching.8221;

Benching Department of Labor DOL as 8220;workers who are in non-productive8217; status due to a decision by the employer,such as lack of work.8221;

Dibon actively recruited H-1B workers and 8220;benched8221; them,8221; the indictment said.

According to the charge-sheet Dibon8217;s 8220;benching8221; scheme was facilitated by the company as a staffing company.

Dibon employed H-1B work with third-party companies.

8220;The design of the H-1B system worker to perform services for the petitioning company,i.e. Dibon. In fact,regulations required that a petitioning company inform the government in petitions if the workers were assigned to a different location that the petitioning company8217;s address-which Dibon did not do,8221; it said.