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Texas orders investigation into alleged H-1B visa abuse, ‘ghost offices’ under scanner

Paxton said the three businesses under investigation may have set up “sham companies” with “ghost offices” and could be engaged in illegal activity to scam the H-1B visa programme.

Written by: Nischai Vats
3 min readJan 29, 2026 06:39 PM IST First published on: Jan 29, 2026 at 02:23 PM IST
H-1B visa, texasThe development comes after Texas Governor Greg Abbott earlier directed public universities and state agencies to freeze H-1B visa petitions immediately.

Texas Attorney General Ken Paxton on Wednesday announced a wide ranging investigation into alleged abuse of the H-1B visa programme and issued Civil Investigative Demands (CIDs) to three companies from North Texas which are at the centre of a broader inquiry of suspected fraudulent activity.

The development comes after Texas Governor Greg Abbott earlier directed public universities and state agencies to freeze H-1B visa petitions immediately.

Abbott had said that the H-1B visa programme has been used in a way that gives disadvantage to American workers. The suspension of the H-1B visa petitions will remain in effect till May 31, 2027.

In an official statement, Paxton said the three businesses under investigation may have set up “sham companies” with “ghost offices” and could be engaged in illegal activity to scam the H-1B visa programme.

“Any criminal who attempts to scam the H-1B visa program and use ‘ghost offices’ or other fraudulent ploys should be prepared to face the full force of the law. Abuse and fraud within these programs strip jobs and opportunities away from Texans,” Paxton said.

The CIDs issued to three suspected businesses require the companies to furnace documentations related to their operations, finances and employment practices. Texas officials believe that these firms may have been engaged in illegal activity designed to improperly obtain H-1B visas.

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The Texas attorney general, as part of the investigation, has demanded documents identifying all employees working for these companies, records detailing the specific products or services provided, financial statements, and communications related to company operations.

The H-1B visa allows the United States companies to temporarily hire foreign workers in specialized roles. The programme has faced intense scrutiny from US President Donald Trump’s administration after a $100,000 application fee was introduced.

“My office will continue to thoroughly review the H-1B visa program and always work to put the interests of Americans first,” Paxton added.

Nischai Vats is a Deputy Copy Editor at The Indian Express. His work primarily covers US politics and visa and immigration policy, alongside broader international developments, with an emphasis on accuracy, verification, and clear explainers. Experience Nischai joined The Indian Express in May 2024 where he works on writing, editing, and refining high-impact stories for digital platforms. His role involves ensuring editorial consistency, factual accuracy, and clarity in coverage of complex policy-driven subjects. Earlier in his career, he worked across Indian digital newsrooms in reporting and editing roles, including stints at Inshorts, Newslaundry, Tiranga TV, and Catch News. His newsroom experience spans rapid digital publishing, ground reporting, and copy editing across national, civic, and policy beats. Expertise His core areas of focus include: US politics and governance: Coverage of American political developments, executive actions, and policy shifts. US visa and immigration policy: Reporting and editing stories on visa categories, regulatory changes, and immigration pathways affecting global audiences. Editorial accuracy and copy editing: Ensuring clarity, language precision, and verification in fast-paced digital news environments. Authoritativeness and trustworthiness Nischai's journalism is grounded in verified sources, official documentation, and clear attribution, in line with The Indian Express’ editorial standards. His background across reporting and editing enables him to translate complex policy updates into reliable, reader-friendly coverage. ... Read More

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