U.S. investigation finds fraud in H-1B visa applications

By Chris Megerian

WASHINGTON — A federal investigation has found significant problems in a controversial program granting temporary visas to skilled foreign workers.

The study by U.S. Citizenship and Immigration Services, an agency of the Department of Homeland Security, found intentional fraud or technical violations in almost 21 percent of the applications for H-1B visas they reviewed.

The findings, completed last month, give new ammunition to advocacy groups that say the program lets U.S. companies bypass American workers in favor of lower-paid foreigners. Large businesses, particularly technology companies, say H-1B visas are an important way to staff specialized positions.

Both sides and members of Congress agree, however, that the government needs to provide more oversight.

"The American people trust that this program is limited to workers whose special qualifications are necessary to sustain a growing economy," said Rep. Lamar Smith, R-San Antonio . "We cannot allow individuals to abuse H-1B visas in order to enter the country fraudulently and take jobs from American workers."

To obtain H-1B status, foreign workers must be sponsored by an American company that agrees to employ them in a specific task for the entire three-year duration of the visa.

But the study, which randomly reviewed 246 applications submitted from October 2005 to March 2006, found visa holders using fraudulent documents, being sponsored by nonexistent companies or working in unrelated fields. One company admitted that a "business development analyst" would be repairing washing machines at a laundromat.

Agency spokeswoman Chris Rhatigan said Citizenship and Immigration Services is considering other protections, such as regular site visits, to ensure that sponsoring businesses actually exist or that employees are working in accordance with their applications.

She said it is also looking to use more of its funds to investigate fraud. Each sponsoring company already pays a $500 anti-fraud fee for each visa they obtain.

Although H-1Bs make up only about 1 percent of all non-immigrant visas issued by the government, they have been a lightning rod in the debate over how globalization affects U.S. jobs.

Sen. Chuck Grassley, an Iowa Republican and a critic of the program, made the agency's report public this month to boost his case that American workers are being harmed.

"The results of this report validate exactly what I've been fearful of: Some employers are bringing H-1B visa holders into our country with complete disregard for the law," he said in a statement.

He also emphasized his "immense frustration" with the three-year time frame needed to complete the study.

Programmers Guild President Kim Berry said he was just as concerned about legitimate H-1B visas as he was about fraudulent ones.

"All of those are displacing Americans, whether there is fraud involved or not," he said.

Berry said businesses should be required to make more efforts to hire Americans before looking abroad.

Kelly Hunt, senior manager for immigration policy at the U.S. Chamber of Commerce , dismissed the notion that American workers were being displaced, saying not all tech jobs require the same skills.

"A lot of times, you may see a decline in certain types of jobs," she said. "But there's a big difference between a person that does material sciences and a person that does electrical engineering."

Hunt said the government should remove the 65,000-person annual limit on H-1B visas in favor of a cap that fluctuates with market demands. An additional 20,000 visas are available for foreign graduates of U.S. universities.

Federal officials reported a record number of applications this year, receiving 163,000 in five days.

Robert Hoffman, vice president for government and public affairs at technology company Oracle Corp. , said additional oversight is necessary to ensure the program isn't ruined for law-abiding companies.

He said Oracle was prepared to hire 1,000 foreign workers last year but only obtained 100 H-1B visas.

"Either we hire them to work offshore or they work for our competitors," he said.