Attorney General Ken Paxton has filed suit against a North Texas businessman and his company, alleging they operated fake childcare businesses in order to fraudulently sponsor foreign workers through the H-1B visa program.
The lawsuit, filed in Collin County, names Yuan Yao and Golden Qi Holdings, LLC as defendants. The state alleges Yao, identified in the petition as “a citizen of the People’s Republic of China,” operated websites advertising childcare services that “do not exist.”
According to the lawsuit, examples of the alleged sham businesses include Allen Infant Care Center and DFW ABA Center, both tied to an address at 600 S. Jupiter Road in Allen.
The state alleges the businesses falsely claimed to provide legitimate childcare services “in part to fraudulently sponsor H-1B visas for employees.”
The filing heavily references recent reporting by Blaze TV and Texas Scorecard personality Sara Gonzales, who visited the Allen address and “did not find any child-care at all.” Instead, according to the petition, she found “an empty building and a playground overgrown with vegetation.”
The lawsuit also cites Gonzales’ interview with an individual familiar with the property who allegedly claimed Yao “sells visas” and sponsors workers who are then paid “next to nothing.”
According to the petition, the defendants filed visa petitions and labor condition applications for positions including software developers, business intelligence analysts, financial analysts, web developers, and market research analysts.
The state alleges those filings were tied to childcare facilities “which were not in operation.”
Texas also alleges neither Allen Infant Care Center nor DFW ABA Center is licensed to operate as a childcare facility.
The attorney general’s office is seeking temporary and permanent injunctions blocking the defendants from advertising or operating childcare facilities in Texas without licenses, along with civil penalties under the Texas Deceptive Trade Practices Act and Human Resources Code.
“Let this be a warning to anyone considering trying to scam the H-1B visa program,” Paxton said. “I will continue fighting to ensure that the H-1B program serves the interests of Americans, not Chinese nationals, and that those who abuse the program are held accountable to the fullest extent of the law.”
The lawsuit follows a broader investigation launched earlier this year by Paxton into suspected abuse of the H-1B visa program by Texas businesses.
