Two New Jersey IT services firms allegedly used shell businesses in two small Iowa towns—Coon Rapids and Clive—as part of an elaborate H-1B visa fraud scheme that began to unravel Feb. 11 with the arrests of 11 individuals in seven states. According to the U.S. Department of Justice, the scheme involved hiring college-educated foreign workers to allegedly fill high-tech jobs in Iowa when, in fact, the workers were sent to the East and West coasts while being paid the lower prevailing Iowa wage rate.More IT Vendors Make H-1B Scam List
In other cases, the DOJ claims, foreign workers were recruited and H-1B visas were obtained for nonexistent jobs or the workers were placed in jobs and locations not previously certified by the Department of Labor, replacing qualified American workers and violating prevailing wage laws.
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