Attorney General Ken Paxton has announced a wide-sweeping investigation into alleged abuse of the federal H-1B visa program by Texas businesses, issuing civil investigative demands to three North Texas companies suspected of operating sham enterprises to fraudulently sponsor foreign workers.
Paxton said his office has issued the demands—known as Civil Investigative Demands, or CIDs—seeking documents identifying company employees, records detailing the products or services provided, financial statements, and communications related to business operations.
Standing outside a single-family home listed as the office address for one of the companies highlighted in recent reporting, Paxton credited BlazeTV and Texas Scorecard personality Sara Gonzales with prompting the investigation.
“Thanks to you, we’re here today,” Paxton said during an interview with Gonzales. “We’ve started an investigation of three different companies that we think might be scamming people with these H-1B visas.”
Paxton did not publicly identify the three companies that received CIDs. However, his office said the investigation includes “entities identified in videos that were widely circulated online.”
A portion of Paxton’s interview with Gonzales was filmed outside a residential home listed as the office address for 3Bees Technologies Inc., a location that Gonzales reported appeared vacant, despite the company’s sponsorship of multiple H-1B visa holders.
According to Paxton’s office, reports indicate that businesses under investigation may have created sham companies featuring websites advertising nonexistent products or services while listing residential homes or unfinished buildings as offices. Despite those irregularities, the companies allegedly sponsored numerous H-1B visas in recent years.
“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,” Paxton stated. “Abuse and fraud within these programs strip jobs and opportunities away from Texans.”
Paxton emphasized that the investigation is ongoing and that companies found to be operating lawfully will face no penalties. If evidence of consumer deception or fraud is uncovered, however, the attorney general said the state could pursue enforcement actions under Texas’ deceptive trade practices laws, which allow for significant financial penalties.
“It’s not our first rodeo, and we will definitely find out what’s going on,” Paxton said.
Paxton’s announcement follows action earlier this week by Gov. Greg Abbott, who ordered all state agencies and public universities to immediately freeze new H-1B visa petitions amid concerns about abuse of the program.
According to data from U.S. Citizenship and Immigration Services, over 41,500 H-1B visa holders are employed in Texas.
Together, Abbott’s administrative freeze and Paxton’s enforcement action represent a coordinated state-level response to growing concerns that the H-1B program—originally designed to supplement the American workforce with specialized talent—is being exploited to replace domestic workers through misrepresentation and fraud.
Paxton said his office will continue reviewing evidence and complaints as the investigation expands.
“We’re going to find out what the truth is,” he said. “If they’re acting appropriately, they’ll be fine. If they’re not, we’ll hold them accountable.”
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