Labor Inspector General Calls H-1B Program a Criminal Enterprise Exploiting U.S. Jobs

In a Washington D.C. interview, Department of Labor Inspector General Anthony D’Esposito described the H-1B visa program as a criminal enterprise where organized groups sell U.S. white-collar jobs to foreign nationals for kickbacks. His investigation, begun July 8 as part of Vice President JD Vance’s Task Force to Eliminate Fraud, targets the roughly 120,000 workers admitted each year—now about one million when spouses are included—by Fortune 500 firms, staffing agencies, universities, hospitals and nonprofits.

D’Esposito said employers often bypass the requirement to hire Americans and can renew visas in three-year increments, allowing workers to be paid 25-30 % below U.S. wages and sometimes forced into illegal conditions when visas expire. Search warrants in several states have uncovered firearms and resulted in additional criminal charges, highlighting the scheme’s breadth. He stressed the focus is on labor-market abuse rather than migrants, blaming weak federal oversight and corporate demand for cheap labor. The probe arrives amid growing public concern and a Federal Reserve Bank of New York report showing high underemployment among recent college graduates.