Texas Attorney General Ken Paxton announced Wednesday that his office has launched what he described as a sweeping investigation into alleged abuse of the federal H-1B visa program, beginning with three North Texas businesses suspected of fraudulent activity.
Paxton said his office has issued civil investigative demands to the companies, seeking documents and records related to their operations, employees, finances and visa sponsorships.
According to the attorney general’s office, the businesses are suspected of creating “sham” companies to fraudulently sponsor H-1B visas, including setting up websites advertising nonexistent products or services. Investigators allege at least one company listed a single-family home as its office address, while its website identified the worksite as an empty, unfinished building.
The businesses are also accused of sponsoring numerous H-1B visas in recent years despite little evidence they actually provide the products or services they advertise.
“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 said in a statement. “Abuse and fraud within these programs strip jobs and opportunities away from Texans.”
Paxton said the investigation is aimed at identifying and holding accountable individuals or companies involved in alleged fraudulent schemes connected to the visa program.
As part of the inquiry, the attorney general’s office is demanding records identifying all employees working for the companies, detailed descriptions of their products or services, financial statements and communications related to company operations.
No companies were publicly named in the announcement.
The H-1B visa program allows U.S. employers to temporarily hire foreign workers for specialized jobs that require at least a bachelor’s degree, with applications vetted and approved by the federal government. The increase in H-1B visas over the years has fueled growth in southern Denton County.
Paxton said his office will continue to review potential abuses of the program.
Gov. Greg Abbott on Tuesday directed all public universities and state agencies to freeze new H-1B visa applications, escalating his administration’s scrutiny of foreign workers employed at taxpayer-funded institutions.
Under the directive, public universities and state agencies may not initiate or file new H-1B visa petitions without written permission from the Texas Workforce Commission through the end of the next legislative session on May 31, 2027.
Gov. Greg Abbott is ordering Texas public universities and state agencies to freeze the H-1B visa processes. Many worry it will jeopardize medical research and PhD programs that rely heavily on the program to attract talent. https://t.co/OP8cfm249I
— FOX 4 NEWS (@FOX4) January 29, 2026
Abbott also ordered agencies and higher education institutions to submit detailed reports to the commission, including the number of new or renewed H-1B visa petitions filed in 2025, the number of H-1B visa holders currently sponsored, job titles, countries of origin and visa expiration dates. He also directed agencies and universities to provide documentation showing they made an effort to give qualified Texans a reasonable opportunity to apply for positions filled by H-1B visa holders.
